Here's Why You Should Keep Middleby Stock in Your Portfolio

The Middleby Corporation MIDD has been benefiting from a robust product portfolio and accretive acquisitions. MIDD’s efforts to reward its shareholders add to its appeal.Elgin, IL-based Middleby provides cooking, warming, food preparation and packaging equipment to the commercial, industrial processing and residential markets. Formerly known as Oven Company, it was acquired by TMC Industries Ltd. in 1983.In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 25.4% compared with the industry’s 4.7% growth.Image Source: Zacks Investment ResearchLet’s discuss the factors that should influence investors to retain this company for the time being.Robust Product Portfolio: Middleby remains focused on launching new products and upgrading the existing ones per the industry trend. Over the past year, MIDD unveiled several products, including MP Equipment, Blodgett ImVection, the Evo EVent Open Canopy Hood, PIZZABOT, TorQ, Discrete CFV, etc. The company is gaining market share in new and large product categories, including beverage and ice. It remains positioned to benefit from strong demand for ventless cooking products in the quarters ahead.Accretive Acquisitions: MIDD has solidified its product portfolio and leveraged business opportunities through asset additions. Acquired assets boosted sales by 0.2% year over year in the third quarter of 2024. In November 2024, the company acquired Gorreri Food Processing Technology. The addition of Gorreri’s expertise in advanced baked goods solutions, coupled with its innovative manufacturing processes, is expected to strengthen Middleby’s position in the food processing end market. In the same month, the company completed the acquisition of JC Ford, which is expected to enhance its presence in the growing snack food category.In September 2024, it purchased Emery Thompson, which enhanced the company’s product offerings in the frozen dessert category. In February 2024, it acquired Germany-based GBT GmbH Bakery Technology. The buyout complemented Middleby’s existing bakery brands and strengthened its European presence in large-scale baking. The company acquired Trade-Wind Manufacturing LLC in August 2023. The buyout complemented Middleby’s indoor and outdoor residential cooking brands, allowing it to offer its customers a broader portfolio of exciting designs and solutions.Rewards to Shareholders: MIDD is committed to rewarding its shareholders handsomely. In 2023 and the first nine months of 2024, the company repurchased common shares worth $74.6 million and $18 million, respectively.Downsides of MIDD StockBusiness Weakness: Middleby has been witnessing weakness in the Residential Kitchen Equipment Group and Commercial Foodservice Equipment Group segments of late. Decreasing demand for residential kitchen products due to weakness in the housing market, amid lower existing and new home sales, is affecting the performance of the Residential Kitchen Equipment Group segment. Softness in the restaurant industry, due to declining traffic, is affecting the demand for the company's products within the Commercial Foodservice Equipment Group segment. High wages and recent food cost inflation have pressured restaurant operators, leading to delayed investments and more restaurant closures, which are alarming for the segment as well.Forex Woes: MIDD’s international presence keeps it exposed to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar is likely to require the company to either raise prices or contract profit margins in locations outside the United States. Thus, adverse currency movements are a worry.Stocks to ConsiderSome better-ranked companies are discussed below.Allegion plc ALLE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ALLE delivered a trailing four-quarter average earnings surprise of 9.9%. In the past 60 days, the Zacks Consensus Estimate for Allegion’s 2025 earnings has increased 1.3%.Enersys ENS presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 2.2%.In the past 60 days, the consensus estimate for ENS’ fiscal 2025 earnings has increased 10%.Applied Industrial Technologies AIT presently carries a Zacks Rank of 2. AIT delivered a trailing four-quarter average earnings surprise of 5.3%.In the past 60 days, the consensus estimate for AIT’s fiscal 2025 earnings has inched up 1.4%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks