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Lincoln Electric Facing A Tougher Year

Timing can be one of the most frustrating parts of investing. I don't have any real doubt that Lincoln Electric (NASDAQ:LECO) will continue to be a well-run and successful industrial company over the long-term, but I definitely have some doubts about how 2015 and 2016 might go and whether the Street has fully worked the risks into the valuation.

If you are the sort of investor who can see a holding go down 10% to 20% and not worry much about it, this could be a good time to consider Lincoln Electric. With headwinds like a weak oil/gas sector, weak demand in Brazil and Russia, and an uncertain outlook for U.S. exports, estimates may have to come down and that will likely pressure the stock. On the other hand, this is a company with consistent double-digit ROICs, growing share, and growth opportunities in areas like automation and I wouldn't try to get too precise with timing the low point in sentiment as this is a good long-term holding that likely won't hang out in bargain territory for all that long. Read more