8 Best Industrial Stocks To Buy According to Analysts

5. Enovis Corporation (NYSE:ENOV)

Number of Hedge Funds: 30

Analyst Upside Potential: 65.66%

Enovis Corporation (NYSE:ENOV) ranks among the best industrial stocks to buy according to analysts. It was held by 30 hedge funds in Q2 2024, as per Insider Monkey’s database.

It is a medical technology company that specializes in creating products for orthopedic care. In simple terms, it makes devices and solutions that help people recover from injuries and surgeries related to bones and joints. They operate through the Prevention & Recovery segment which deals with items including braces, supports, and therapy products. It also engages in Reconstructive Surgery where the company develops implants and tools used in surgeries to replace or repair joints.

Enovis Corporation (NYSE:ENOV) made significant progress during the second quarter of fiscal 2024. The net sales for the quarter improved 23% year-over-year to reach $525 million. This increase was driven by stable performance in the Prevention & Recovery (P&R) segment and robust growth in the Reconstructive segment, which saw a 60% increase in reported sales.

Management noted that they have successfully integrated recent acquisitions, including LimaCorporate and Novastep, which have contributed to its sales growth and operational efficiencies. Another key highlight for the company came as FDA approved new products, including the Arvis 2.0 Shoulder system, with launches expected in Q3 2024. This aligns with their strategy to enhance product offerings and market reach.

Enovis Corporation (NYSE:ENOV) is optimistic about its growth trajectory for the remainder of fiscal 2024, having narrowed its revenue guidance to between $2.08 billion and $2.13 billion. The company also reaffirmed its adjusted EBITDA expectations for the year at approximately $368 million to $383 million, indicating confidence in continued momentum and profitability improvements moving forward.

Carillon Chartwell Small Cap Value Fund stated the following regarding Enovis Corporation (NYSE:ENOV) in its Q2 2024 investor letter:

“Enovis Corporation (NYSE:ENOV) manufactures and markets orthopedic devices for reconstructive implants, bracing, and physical therapy. Slowing growth following the post-pandemic recovery in medical procedures and potential disruption during an upcoming acquisition have spooked investors.”