By Philip van Doorn
The column for changes in revenue during 2020 is marked “estimated” because many companies still haven’t reported for quarters ended Dec. 31.
Airlines dominate the list, as may be expected. If you scroll the table, you can see that for all the airlines, 2021 sales are expected to remain well below their 2019 levels. In fact, on this list of 25 best expected sales growers for calendar 2021 among the S&P 1500 industrials, only 12 companies are forecast to report higher revenue in 2021 than they did in 2019. These exceptions include Boeing Co. /zigman2/quotes/208579720/composite BA -1.74% and Deere & Co. /zigman2/quotes/207941296/composite DE -2.10% .
The company on this first list expected to show the greatest increase in sales for 2021 from 2019 is Generac Holdings Inc. /zigman2/quotes/208144117/composite GNRC -0.19% .
Leaving the above group of expected sales growers in the same order, here’s a summary of opinion among Wall Street analysts. Note that for 11 of the 25, closing prices on Feb. 25 were higher than consensus price targets:
American Airlines is the only stock among the 233 in the S&P 1500 Composite industrial sector with majority “sell” or equivalent rating among analysts polled by FactSet.
Expected 2021 sales versus pre-pandemic levels
In the first list of companies expected to increase sales the most in calendar 2021 from 2020, less than half are seen producing higher revenue in 2021 than they did in 2019. Focusing only on expected 2021 sales growth would leave out FedEx Corp. /zigman2/quotes/203047719/composite FDX -1.17% , for example, which increased its sales by 9% last year and is expected to do so again during 2021.
That points to another screen.
Here are the 25 S&P 1500 industrial companies expected to increase their calendar 2021 sales the most over their pre-pandemic sales in 2019:
One reason that a company may have increased its sales by a large amount might be that it acquired another company, or made a series of acquisitions. You can easily learn about a company’s acquisition history by reading Item 1 of its annual 10-K report, where it describes its business. Those reports can be accessed at the SEC EDGAR Database .
Here’s a summary of analysts’ opinions of this group of expected sales-growth winners for 2021 when compared to 2019:
Looking at the price targets, analysts see the most upside potential over the next 12 months for Atlas Air World Holdings Inc. /zigman2/quotes/200338181/composite AAWW -1.43% , with a price target of $83.83 and a closing price of $56.07 on Feb. 24.
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