Cheese, corn, beer -- that's what most of us think when we hear the name Wisconsin. But the three Wisconsin-based companies that made Fortune's 2007 list of 100 fastest growing companies -- Ladish Inc. (NASDAQ: LDSH), Joy Global Inc. (NASDAQ: JOYG), and Regal Beloit Corp. (NYSE: RBC) -- are manufacturers that have nothing to do directly with cheese, corn, or beer.
Wisconsin does lead the nation in cheese production. Heck, two of those three items -- cheese, corn, and beer -- even appear on the Wisconsin design state quarter. Despite Wisconsin's reputation as an agricultural state, though, agriculture isn't the largest part of the state economy. Tourism is also an important industry in Wisconsin, with such destinations as the Wisconsin Dells, Circus World and the House on the Rock, but that's not the leading sector either. Manufacturing makes up the largest part of the Wisconsin economy, as the companies on Fortune's list indicate.
At number 21 on the list of the fastest growing companies was aerospace components maker Ladish, which is headquartered in Cudahy, Wisconsin. Ladish's three-year annual revenue growth rate was 28% and its five-year earnings per share growth was 104%. Back in July, Ladish reported a strong second quarter, beating expectations, and a solid outlook for rest of the year. Then, in August, the company announced that it would expand its operations in Poland. Analysts surveyed by Thomson Financial consider Ladish a buy. The share price reached a 52-week high of $60.00 on Tuesday. It was trading in the mid $20s a year ago.
Milwaukee-based Joy Global was Fortune's number 41 fastest growing company. This mining-equipment maker had a three-year annual revenue growth rate of 27%, and a three-year earnings per share growth of 141%. In July, Joy Global adjusted its guidance for 2007 after a weak first half of the year, and more recently reaffirmed that guidance. The share price of $53.03 at the close on Tuesday is down from the 52-week high of $65.50 in July, but well up from the low $30s a year ago. The consensus of analysts surveyed by Thomson Financial is that Joy Global is a buy.
Regal Beloit produces engine and motion control components such as those in factory robots. This Beloit-based company's three-year annual revenue growth rate of 27% and three-year earnings per share growth of 55% were good enough to earn it number 98 on Fortune's list. Back in July, Regal Beloit reported record results for the second quarter of 2007, and more recently the company has expanded through acquisition. The share price of $48.67 at the close on Tuesday is down from its 52-week high of $59.00 in July, but analysts surveyed by Thomson Financial consider Regal Beloit a buy.
Snap-On Inc. (NYSE: SNA) is another Wisconsin-based company, one that found its way onto the Forbes list of best mid-cap stocks. The Kenosha tool maker had five-year earnings per share growth of 23%. The share price hit its 52-week high of $57.81 after a strong second quarter report back in July. The price was $50.68 at the close on Tuesday. The September dividend continued Snap-On's uninterrupted streak of consecutive quarterly dividends that stretches all the way back to 1939. Analysts surveyed by Thomson Financial consider Snap-On a strong buy.
Disclosure: I do not own shares of these stocks.
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