Is Atmus Filtration Technologies Inc. (ATMU) A Good Stock To Buy Now?

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Atmus Filtration (ATMU) is simply a high-quality, little cyclical aftermarket filtration institution spun retired of Cummins successful 2023, positioned to compound shareholder returns astatine a mid-teens CAGR portion trading astatine a discount to Donaldson Inc. (DCI), implying astir 20% upside successful the basal case. The concern is anchored by ~86% aftermarket revenue, creating durable recurring demand, pricing power, and OEM-driven lock-in, supported by ~1,200 patents and a planetary footprint crossed the Americas, EMEA, and APAC.

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Atmus serves a ~$89bn filtration TAM, including a ~$15bn halfway motor market, and is present expanding into the ~$55bn concern filtration conception pursuing the late-2025 acquisition of Koch Filter Corp., a highly consumable HVAC and concern filtration concern that is expected to beryllium EBITDA borderline accretive and EPS accretive successful twelvemonth one. This determination diversifies maturation and accelerates company’s semipermanent enlargement profile.

Secular tailwinds see tightening emissions regulations: EPA 2027 NOx standards and European equivalents, expanding filtration contented per engine, portion cyclical weakness successful North American freight and Class 8 motortruck builds has suppressed near-term request but creates meaningful upside optionality connected recovery. Atmus has outgrown its extremity markets by 2–3% and is expected to proceed humble stock gains adjacent successful level conditions.

Relative to DCI, Atmus demonstrating stronger execution and accelerating growth, supporting aggregate convergence. Management guidance of $2.75–$3.00 2026 EPS and $3.61 2027 EPS appears conservative, and applying a 20x aggregate accordant with DCI supports rerating imaginable aligned with the ~20% upside scenario, with further catalysts from Koch integration and freight recovery.

Previously, we covered a bullish thesis connected Hubbell Incorporated (HUBB) by Stock Analysis Compilation successful December 2024, which highlighted grid modernization and vigor modulation tailwinds, focusing connected inferior infrastructure upgrades and electrification demand. HUBB's banal terms has been level since our coverage. nha855 shares a akin presumption but emphasizes connected aftermarket durability, acquisition-led growth, and filtration-driven concern enlargement alternatively than grid spending rhythm exposure.