That focus gives Clarcor a significant advantage over Pall Corporation (NYSE:PLL), which has seen sales drop in its industrial segment because of Pall Corporation (NYSE:PLL)’s focus on aerospace, microelectronics, and broader-scale systems. Pall Corporation (NYSE:PLL) saw greater growth in its Life Sciences segment, an area that Clarcor hasn’t stressed, and which has helped the two stocks produce similar returns over the past year.
One outstanding question remains: the extent to which larger competitors will start eating into Clarcor’s business. 3M Co (NYSE:MMM)‘s Ceradyne division has the potential to become a much larger player in the energy space, with its PetroCeram sand-screen ceramic filters offering advantages over metals-based filtration systems. Meanwhile, General Electric Company (NYSE:GE) announced an Arizona project in July to provide the treatment technology for a drinking-water plant, winning a local award and showing the extent to which cleaning and filtration remain essential parts of functioning infrastructure. Clarcor has growth opportunities in those areas, but it needs to stand up to bigger players and assert its strength in the niche.
In the Clarcor earnings report, look to see how well the company can do at trying to boost revenue even under tough conditions. The better Clarcor can do — even in a challenging environment — the more promising its prospects will be once global economic growth gets back on firmer footing.
The article Will Clarcor Earnings Keep Shares Soaring? originally appeared on Fool.com is written by Dan Caplinger.
Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends 3M. The Motley Fool owns shares of General Electric Company.
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