Why Federal Signal Stock Is Skyrocketing Today
Federal Signal grew sales, orders, and earnings per share by 15%, 14%, and 23%, respectively.
On top of this growth, its EBITDA margins hit new all-time highs.
As the leader in its specialized niches, Federal Signal is a promising stock now trading at a loftier valuation.
10 stocks we like better than Federal Signal ›
Shares of leading environmental and safety solutions provider Federal Signal (NYSE: FSS) rose 22% as of 12 p.m. ET on Wednesday, according to data provided by S&P Global Market Intelligence. The company reported second-quarter earnings where sales, orders, and adjusted earnings per share (EPS) rose by 15%, 14%, and 23%, respectively.
This growth, paired with management's raised 2025 guidance for 12% revenue growth and 20% adjusted earnings-per-share (EPS) growth, sent the company's shares to new all-time highs.
Signaling future outperformance?
Federal Signal is a manufacturer that operates through two business segments -- its Environmental Solutions Group (ESG) and Safety and Security Group (SSG).
The ESG makes specialty equipment, such as street sweepers, road-marking vehicles, safe-digging trucks, and metal extraction support equipment, along with the aftermarket services that go with each. The SSG creates public-safety equipment, signaling products, and warning systems used in cop cars, emergency vehicles, and industrial-grade security systems.
Holding a No.1 or No. 2 market-share position across these niches, Federal Signal has been a 20-bagger since 2010. Over this time, it has become a successful serial acquirer, adding 13 complementary business lines since 2016.
In March, I wrote about Federal Signal as a candidate to outperform, thanks to these qualities -- and its Q2 results back this notion. Perhaps the most intriguing part of the earnings report was the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins reaching an all-time high of 19.5%.
Despite the company reaching this new high, management raised its annual, through-the-cycle EBITDA target from 17% to 19%. This means that in their eyes, Q2's outsized profitability wasn't an outlier but closer to what Federal Signal can average over the long haul.
Trading at 37 times earnings, Federal Signal now holds a lofty valuation but is firing on all cylinders.
Should you buy stock in Federal Signal right now?
Before you buy stock in Federal Signal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Federal Signal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!*
Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Federal Signal Stock Is Skyrocketing Today was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Kenvue meets profit estimates amid strategic review
(Reuters) -Kenvue reported a second-quarter profit largely in line with Wall Street estimates on Thursday, amid a strategic review at the consumer health company. The company posted an adjusted profit of 29 cents per share, compared with analysts' average estimate of 28 cents per share, according to data compiled by LSEG.
Yahoo
17 minutes ago
- Yahoo
West Point Gold Engages VRIFY to Accelerate Exploration and Unlock Discovery at Gold Chain Project
Vancouver, British Columbia--(Newsfile Corp. - August 7, 2025) - West Point Gold Corp. (TSXV: WPG) (OTCQB: WPGCF) (FSE: LRA0) ("West Point Gold" or the "Company") is pleased to announce that it has engaged VRIFY Technology Inc. ("VRIFY"), the leading provider of AI-assisted mineral discovery and 3D project visualization, to support and accelerate its exploration efforts across its Gold Chain Project in Arizona. West Point will harness VRIFY's full suite of products to maximize the value of its extensive datasets to drive smarter, faster discovery outcomes. DORA, the world's only AI-Assisted Mineral Discovery Platform, will support the Company in identifying, ranking, and validating targets using artificial intelligence. Viz, VRIFY's dynamic 3D visualization tool, will transform stakeholder engagement and elevate the clarity of technical storytelling. "Our team has always prioritized visual storytelling," said Quentin Mai, President & CEO of West Point Gold. "Partnering with VRIFY allows us to take our project presentations to the next level and more effectively showcase the potential of our Gold Chain Project to investors and stakeholders." With a robust drilling database, strong geophysical coverage, and a large, highly prospective land package anchored by the advancing Tyro target, West Point is well-positioned to benefit from DORA's ability to synthesize complex geological data into high-confidence exploration targets. The Company is looking to maximize the return on shareholder capital by focusing exploration efforts where the probability of success is highest. "We believe the use of VRIFY's AI-Assisted Mineral Discovery Platform, DORA, should help us define and prioritize the many step-out targets we have at Gold Chain," said Derek Macpherson, Executive Chairman of West Point Gold. "The use of AI will allow us to more efficiently take advantage of the extensive early-stage geologic work we have completed to date, hopefully accelerating our exploration process as we work to demonstrate Gold Chain's full potential." VRIFY CEO and Co-Founder, Steve de Jong, added, "West Point is a great example of the forward-thinking teams we're excited to partner with. They understand that leveraging AI and modern visualization isn't optional anymore, it's how the next generation of discoveries will be made." With mineral exploration entering a new era driven by artificial intelligence, West Point Gold's adoption of VRIFY reflects a broader strategic shift towards data-driven discovery, capital efficiency, and maximizing per-share value creation for shareholders. About West Point Gold Corp. West Point Gold Corp. (formerly Gold79 Mines Ltd.) is a publicly listed company focused on gold discovery and development at four prolific Walker Lane Trend projects covering Nevada and Arizona, USA. West Point Gold is focused on developing a maiden resource at its Gold Chain project in Arizona, while JV partner Kinross is advancing the Jefferson Canyon project in Nevada. About VRIFY VRIFY is redefining mineral exploration by putting the power of AI into the hands of geoscientists. DORA, VRIFY's AI-Assisted Mineral Discovery Platform, empowers technical teams to leverage the industry's largest proprietary exploration dataset and mineral-system-specific AI models to identify, rank, and validate high-potential targets faster, and with greater confidence. A high-growth software company trusted globally by over 170 mineral exploration and mining companies, VRIFY is shaping a new era of exploration and discovery. Learn more at: For further information regarding this press release, please contact: Aaron Paterson, Corporate Communications ManagerPhone: +1 (778) 358-6173Email: info@ Stay Connected with Us:LinkedIn: (Twitter): @westpointgoldUSFacebook: FORWARD-LOOKING STATEMENTS: Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events including, among others, assumptions about future prices of gold, silver, and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining government approvals and financing on time, obtaining renewals for existing licenses and permits and obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, availability of drill rigs, and anticipated costs and expenditures. The Company cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to West Point Gold's ability to complete any payments or expenditures required under the Company's various option agreements for its projects; and other risks and uncertainties relating to the actual results of current exploration activities, the uncertainties related to resources estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; risks relating to grade and continuity of mineral deposits; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; uncertainty related to the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results may vary from those expected; statements about expected results of operations, royalties, cash flows, financial position may not be consistent with the Company's expectations due to accidents, equipment breakdowns, title and permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and regulatory restrictions, including environmental regulatory restrictions. The possibility that future exploration, development or mining results will not be consistent with adjacent properties and the Company's expectations; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); metal price fluctuations; environmental and regulatory requirements; availability of permits, failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; fluctuating gold prices; possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, political risks, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks involved in the mineral exploration and development industry, and those risks set out in the filings on SEDAR+ made by the Company with securities regulators. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this corporate press release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. To view the source version of this press release, please visit
Yahoo
17 minutes ago
- Yahoo
Telecommunications firm BCE swings to Q2 profit, also sees operating revenue increase
MONTREAL — BCE Inc. says its latest quarter delivered a higher profit and revenue than the telecommunications firm saw a year earlier. The parent company of Bell Canada says its second-quarter net earnings attributable to common shareholders amounted to $579 million or 63 cents per share. The result compared with a profit of $537 million or 59 cents per share a year prior. Operating revenue for the quarter ended June 30 totalled $6.08 billion compared with about $6 billion a year earlier. On an adjusted basis, BCE says it earned 63 cents per share, down from an adjusted profit of 78 cents per share a year earlier. Analysts on average had expected an adjusted profit of 71 cents per share, according to estimates compiled by LSEG Data & Analytics. This report by The Canadian Press was first published Aug. 7, 2025. Companies in this story: (TSX:BCE) The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
