First Trust Active Factor Small Cap ETF Poised to Reach $37: Analysts Predict 10.31% Upside
PorAinvest
viernes, 19 de septiembre de 2025, 7:48 am ET1 min de lectura
FSTR--
Since 2021, L.B. Foster has enhanced its margins by 540 basis points, driven by organic growth and disciplined capital allocation. Key growth areas include Global Friction Management (42%), Total Track Monitoring (273%), and Precast Concrete (119%) [1]. The company's recent financial results show revenue growth of 2% year-over-year in the most recent quarter, with a 51% increase in EBITDA year-over-year. Precast Concrete business saw a 36% rise in the second quarter. The company expects to generate $20 million in free cash flow for the year [1].
L.B. Foster has been actively buying back stock and sees its valuation as attractive. The company anticipates 43% growth in the second half of the year, with 14% organic growth. It has authorized $40 million for a share repurchase program. Infrastructure spending from the IIJA and CRISI Grant funding is expected to support future growth. The potential merger of Union Pacific and Norfolk Southern is seen as beneficial for L.B. Foster’s rail products [1].
The company's operational updates indicate a strengthening order book, particularly in the rail business, with a positive backlog trend. The company is evolving its portfolio to drive improved sales and margins. The growth in key areas is driven by infrastructure spending and domestic energy production.
In conclusion, L.B. Foster's strategic transformation has led to significant improvements in profitability and growth. The company's focus on higher-margin businesses and disciplined capital allocation has paid off, with notable growth in key areas. The company remains optimistic about future growth opportunities, driven by infrastructure spending and domestic energy production.
The First Trust Active Factor Small Cap ETF (AFSM) is expected to reach a price of $37, with an implied analyst target price of $36.90. The ETF's underlying holdings, including Hackett Group Inc, EverQuote Inc, and Kiniksa Pharmaceuticals International plc, have notable upside to their analyst target prices, with potential gains of 10.31%, 45.00%, and 19.71%, respectively.
L.B. Foster (NASDAQ: FSTR) presented its strategic transformation and financial outlook at the Small-Cap Virtual Conference on September 18, 2025. The company, which specializes in rail technologies and services, as well as infrastructure solutions, has been focusing on higher-margin businesses. This strategic shift has led to significant improvements in profitability.Since 2021, L.B. Foster has enhanced its margins by 540 basis points, driven by organic growth and disciplined capital allocation. Key growth areas include Global Friction Management (42%), Total Track Monitoring (273%), and Precast Concrete (119%) [1]. The company's recent financial results show revenue growth of 2% year-over-year in the most recent quarter, with a 51% increase in EBITDA year-over-year. Precast Concrete business saw a 36% rise in the second quarter. The company expects to generate $20 million in free cash flow for the year [1].
L.B. Foster has been actively buying back stock and sees its valuation as attractive. The company anticipates 43% growth in the second half of the year, with 14% organic growth. It has authorized $40 million for a share repurchase program. Infrastructure spending from the IIJA and CRISI Grant funding is expected to support future growth. The potential merger of Union Pacific and Norfolk Southern is seen as beneficial for L.B. Foster’s rail products [1].
The company's operational updates indicate a strengthening order book, particularly in the rail business, with a positive backlog trend. The company is evolving its portfolio to drive improved sales and margins. The growth in key areas is driven by infrastructure spending and domestic energy production.
In conclusion, L.B. Foster's strategic transformation has led to significant improvements in profitability and growth. The company's focus on higher-margin businesses and disciplined capital allocation has paid off, with notable growth in key areas. The company remains optimistic about future growth opportunities, driven by infrastructure spending and domestic energy production.
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