Astec Industries' Drop Is Painful But Temporary

Daniel Jones Investing Group Leader Follow Summary Astec Industries remains a 'buy' as shares are attractively valued despite recent underperformance and revised guidance. ASTE's growth is driven by acquisitions and strong segment performance, with backlog rising 57.9% to $601.1 million year-over-year. Management targets 6%+ annual revenue growth and 25%+ annual operating cash flow growth through 2030, leveraging infrastructure spending tailwinds. Even at current multiples, ASTE offers compelling annualized upside potential of 13.7% based on 2030 EBITDA targets. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Oliver Rossi/DigitalVision via Getty Images Back in May of this year, I made the decision to reaffirm Astec Industries, Inc. ( ASTE ) as a ‘buy’ candidate. I believed that the company was still attractive thanks to its valuation and acquisition-driven growth. Still, the This article was written by Daniel Jones 37.94K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.