Fanuc Forecasting The Bottom, While Investors Price In The Recovery

By Stephen Simpson

It’s not exactly news that the stock market is a look-ahead mechanism for valuing companies, and that’s particularly important to keep in mind today when looking at factory automation companies. While business continues to deteriorate at Fanuc (OTCPK:FANUY) (6954) and may well not truly bottom out until the fall of 2019, the nearly 30% year-to-date move in the stock (well ahead of the average industrial stock) against a roughly 18% drop over the past year suggests that investors are already starting to look ahead to the recovery in orders, revenue, and profits.

Valuing Fanuc has always been problematic, as the company’s perceived quality has generally earned it a premium (not wholly undeserved in my opinion). Even though….

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