Why Lincoln Electric Holdings (LECO) is on investors’ radar today

Lincoln Electric Holdings (LECO) has drawn fresh attention after recent share price moves, with the stock closing at $293.68 and showing double digit total returns over the past year and past 3 months.

For investors tracking industrial names, the company’s mix of welding, cutting, brazing products and automated solutions, alongside its reported revenue of $4.23b and net income of $520.53m, offers several angles to assess business strength and valuation.

While the latest 1 day and 7 day share price returns show a small pullback, the strong 30 day share price return of 14.8% and 1 year total shareholder return of 39.3% point to momentum that has been building rather than fading.

If this move in an industrial name has caught your attention, it could be a good moment to see what else is setting up well in our 25 power grid technology and infrastructure stocks.

After a strong 1 year total return near 40% and a share price that sits slightly above the average analyst target, the key question is whether Lincoln Electric still trades at a discount or whether the market is already pricing in future growth.

Most Popular Narrative: 12% Overvalued

At $293.68, Lincoln Electric Holdings trades above the most followed fair value estimate of $262.60, which is built using an 8.56% discount rate and detailed long term forecasts.

Expanded opportunities in end markets tied to infrastructure (such as power generation, data centers, and HVAC), alongside domestic and international government initiatives, are likely to sustain demand for welding products and consumables, especially as energy transition and infrastructure spending ramps up. This trend supports multi-year revenue and margin growth.

Curious what kind of revenue profile and profit margins would need to hold for that fair value to make sense, and how rich the future earnings multiple looks on those assumptions.

Result: Fair Value of $262.60 (OVERVALUED)

However, this hinges on demand holding up, because heavy reliance on price increases, cyclical end markets, and weaker international regions could all undercut those fair value assumptions.

Build Your Own Lincoln Electric Holdings Narrative

If you look at this and think the story should be framed differently, or you prefer to work from your own numbers, you can build a tailored view in just a few minutes with Do it your way.

A great starting point for your Lincoln Electric Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.