Regal Beloit shows relatively strong fundamentals and is coming back to attractive prices.
The firm enjoys a very good Surperformance rating which underlines the great business predictability and the positive revenue estimates revisions. The consensus average target price is displaying a +24% potential. Furthermore, the P/E ratio for 2015 estimates is below the industry average.
The stock, currently oversold, evolves within a downtrend in the short term. Nevertheless, this trend could be reversed as it approaches the USD 68.2 support and the USD 68 psychological threshold. This support represents a buying opportunity in the context of a foreseeable technical rebound toward USD 73.26.
The technical situation calls for Regal Beloit buys at current prices with an upside potential to USD 73.26, which represents a 7% performance. This trading strategy will require a stop loss below the short term support.
Regal Rexnord Corporation is engaged in the engineering and manufacturing of factory automation sub-systems, industrial powertrain solutions, automation and mechanical power transmission components, electric motors and electronic controls, air-moving products, and specialty electrical components and systems. Its segments consists of Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), and Automation & Motion Control (AMC). Its IPS segment designs, produces and services mounted and unmounted bearings, couplings, mechanical power transmission drives, gearboxes and gear motors, clutches, brakes, and industrial powertrain components. Its PES segment designs and produces fractional to approximately five horsepower alternating current and direct current motors, electronic variable speed controls, and more. Its AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solution, and more.
REGAL REXNORD CORPORATION 
