Enpro Industries

Enpro raised its full-year 2026 outlook following a strong second quarter in which sales rose 17.6% year over year to $338.8 million and adjusted diluted earnings per share increased 23.2% to $2.50. The company now expects 14% to 16% sales growth, adjusted EBITDA of $330 million to $340 million, and adjusted diluted EPS of $9.30 to $9.80, with the majority of the increase attributed to its Advanced Surface Technologies segment. Advanced Surface Technologies sales grew 21.8% during the quarter, driven by strong demand for precision cleaning services tied to advanced-node semiconductor production, while Sealing Technologies sales increased 15.3% to $216.2 million, supported by acquisitions and aerospace demand. Enpro also raised its expected 2026 capital expenditures and capitalized software spending to $60 million to $65 million to accelerate capacity investments in Arizona, California, and Taiwan.

Enpro has delivered a 238% total return since July 2021, more than tripling the S&P 500’s 71.7% gain, and its stock is up 37% over the past six months. The company’s operating margin expanded by 5 percentage points over the last five years to 15.3%, while earnings per share grew at a 16.4% compound annual rate, far outpacing its 1.8% annualized revenue growth. However, that sluggish top-line expansion remains a concern. Enpro currently trades at 33.6 times forward earnings, or $319.51 per share.

StockStory has placed Enpro and First Solar on its watchlist while recommending investors avoid Silgan Holdings. The firm highlights Enpro’s 5-percentage-point operating margin improvement over five years and 16.4% annual EPS growth, along with strong free cash flow generation. First Solar is cited for 23.3% annual revenue growth over the past two years, positive free cash flow, and rising returns on capital. Silgan Holdings is flagged for slow 5.1% annual revenue growth, a low 16.8% gross margin, and a thin 1.9% free cash flow margin over five years. The industrials sector has gained 13.3% over six months, outpacing the S&P 500’s 7.7% return.

Coherent has returned about 99.7% since the start of the calendar year, significantly outperforming the Business Services sector, which has lost about 8% on average over the same period. The company currently holds a Zacks Rank of 1, or Strong Buy, and its full-year earnings consensus estimate has risen 14.9% over the past quarter. Another Business Services stock, Enpro, has also beaten the sector with a year-to-date return of 68.5% and carries a Zacks Rank of 2, or Buy. Both Coherent and Enpro belong to the Technology Services industry, which has lost an average of 0.6% so far this year, meaning both stocks are performing better than their industry as well.