GTES

Gates Industrial Corporation Ltd. (GTES), a Denver-based manufacturer of power transmission and fluid power solutions, is highlighted as a momentum stock worth watching. The company holds a #3 (Hold) Zacks Rank with a B VGM Score and an A Momentum Style Score. With shares up 1.8% over the past four weeks and an upward earnings estimate revision of $0.03 to $1.67 per share for fiscal 2026, GTES demonstrates solid momentum characteristics and an average earnings surprise of +6.2%.

Timken Company completed the sale of its belts business to Gates Industrial Corporation to focus on core advanced motion technology competencies. The divestiture is expected to boost Industrial Motion segment margins to 25-27% by 2028 (up from 19% in 2025) and drive adjusted EPS to $8.50 in 2028, representing 55% growth. Q2 2026 results showed strong performance with adjusted EPS of $1.83, beating consensus estimates.