Federal Signal Corporation (NYSE:FSS) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Analyst sentiment is positive: Six brokerages give Federal Signal an average “Buy” rating, with four buys, one strong buy, and one hold. The average 12-month price target is $139.25, above the $118.33 opening price.
• Quarterly results exceeded expectations: Federal Signal reported earnings of $1.18 per share versus the $0.89 consensus estimate, while revenue rose 35% year over year to $625.6 million. The company issued fiscal 2026 EPS guidance of $4.80–$5.05.
• Institutional ownership remains high: Institutional investors own 92.73% of the stock, with several funds recently increasing their positions. Shares have traded between $101.18 and $134.51 over the past year.

Shares of Federal Signal Corporation (NYSE:FSS - Get Free Report) have been assigned an average recommendation of "Buy" from the six research firms that are currently covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $139.25.

Several equities analysts have commented on FSS shares. KeyCorp reissued an "overweight" rating and issued a $140.00 target price on shares of Federal Signal in a report on Thursday, April 30th. DA Davidson upped their price target on shares of Federal Signal from $125.00 to $132.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Zacks Research raised shares of Federal Signal from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Finally, Weiss Ratings upgraded shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd.

Institutional Trading of Federal Signal

Several institutional investors and hedge funds have recently modified their holdings of FSS. Physician Wealth Advisors Inc. increased its position in shares of Federal Signal by 57.2% during the first quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate's stock worth $27,000 after buying an additional 91 shares during the period. New Age Alpha Advisors LLC grew its position in Federal Signal by 3.4% in the 4th quarter. New Age Alpha Advisors LLC now owns 2,895 shares of the conglomerate's stock valued at $314,000 after purchasing an additional 95 shares during the period. Canada Pension Plan Investment Board grew its position in Federal Signal by 10.0% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,100 shares of the conglomerate's stock valued at $117,000 after purchasing an additional 100 shares during the period. Smartleaf Asset Management LLC increased its stake in Federal Signal by 9.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,245 shares of the conglomerate's stock valued at $130,000 after purchasing an additional 108 shares in the last quarter. Finally, UMB Bank n.a. increased its stake in Federal Signal by 50.5% during the 4th quarter. UMB Bank n.a. now owns 331 shares of the conglomerate's stock valued at $36,000 after purchasing an additional 111 shares in the last quarter. 92.73% of the stock is currently owned by institutional investors.

Federal Signal Trading Down 0.5%

Shares of Federal Signal stock opened at $118.33 on Tuesday. The firm has a 50-day moving average of $116.52 and a 200-day moving average of $114.76. The stock has a market cap of $7.22 billion, a PE ratio of 26.89, a PEG ratio of 1.72 and a beta of 1.23. Federal Signal has a 52-week low of $101.18 and a 52-week high of $134.51. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.29 and a current ratio of 2.84.

Federal Signal (NYSE:FSS - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The conglomerate reported $1.18 EPS for the quarter, topping analysts' consensus estimates of $0.89 by $0.29. Federal Signal had a net margin of 11.56% and a return on equity of 21.18%. The business had revenue of $625.60 million for the quarter, compared to analyst estimates of $579.87 million. During the same period last year, the firm earned $0.76 earnings per share. Federal Signal's revenue for the quarter was up 35.0% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 4.800-5.050 EPS. As a group, sell-side analysts forecast that Federal Signal will post 4.94 EPS for the current year.

About Federal Signal

Federal Signal Corporation NYSE: FSS, headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

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