Why Shares of Brady Corporation Are Soaring This Week

Source Motley_fool

Key Points

  • Brady exceeded analysts' top- and bottom-line expectations.

  • The company upwardly revised 2026 guidance.

  • 10 stocks we like better than Brady ›

Shares of Brady Corporation (NYSE: BRC) didn't offer investors much to celebrate during the first half of May, dropping more than 13%. But things turned around this week, as the provider of safety and compliance solutions reported strong third-quarter 2026 financial results on Monday and upwardly revised guidance.

According to data provided by S&P Global Market Intelligence, Brady stock is up 19.2% from the end of trading last Friday through yesterday's close.

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Expectations for 2026 are a little better than before

Growing sales 13.8% year-over-year, Brady reported $435.2 million on the top line for Q3 2026 -- better than the $406.1 million that analysts had anticipated.

The company reported better-than-expected results at the bottom of the income statement as well. While the consensus among analysts was that it would report Q3 2026 adjusted earnings per share (EPS) of $1.35, Brady reported adjusted EPS of $1.50, a company record for quarterly adjusted EPS.

Providing a more auspicious outlook for the remainder of the year, Brady hiked its adjusted diluted EPS fiscal 2026 forecast to $5.20 to $5.30 from $4.95 to $5.15.

Is it too late to buy Brady stock after its recent rise?

For investors looking to fortify their portfolios with a conservative industrials stock pick, Brady is a worthwhile consideration. In addition to the company's safety and compliance solutions remaining in consistent demand, Brady is on solid financial footing, ending Q3 2026 with a net cash position of $148.6 million. With shares currently valued at 15.1 times operating cash flow, just slightly above their five-year average cash flow multiple of 14.5, today's a great time to pick up shares.

Should you buy stock in Brady right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brady. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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