ESCO Technologies, Inc. (NYSE:ESE) posted an impressive 20% earnings per share increase in its September quarter. Management drove solid organic growth, supplemented by four announced acquisitions that should be accretive. In addition, a major comparable company operating in its filtration segment was purchased at a very high multiple, highlighting that much value still remains in ESCO’s equity. In November, ESCO offered positive guidance for its upcoming fiscal year. Also, like many industrial stocks, it has benefited from the perception that the proposed policies of President-elect Trump will be positive for the economy.
From Baron Discovery Fund's fourth quarter 2016 commentary.
