Federal Signal (NYSE:FSS) Stock Rating Lowered by Wall Street Zen

Federal Signal (NYSE:FSS) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

Other equities analysts have also recently issued reports about the company. Zacks Research upgraded Federal Signal from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 4th. DA Davidson boosted their price objective on shares of Federal Signal from $125.00 to $132.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Weiss Ratings upgraded shares of Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday, June 23rd. Finally, KeyCorp reissued an “overweight” rating and issued a $140.00 target price on shares of Federal Signal in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Federal Signal presently has a consensus rating of “Buy” and a consensus price target of $137.33.

Federal Signal Stock Performance

Shares of Federal Signal stock opened at $124.91 on Friday. The firm’s 50-day simple moving average is $117.17 and its 200-day simple moving average is $114.87. Federal Signal has a 1 year low of $101.18 and a 1 year high of $134.51. The firm has a market cap of $7.62 billion, a PE ratio of 26.92, a price-to-earnings-growth ratio of 1.71 and a beta of 1.24. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.74.

Federal Signal (NYSE:FSS) last released its earnings results on Thursday, July 30th. The conglomerate reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.13. Federal Signal had a return on equity of 21.36% and a net margin of 11.66%.The company had revenue of $670.20 million for the quarter, compared to the consensus estimate of $667.04 million. During the same quarter last year, the business posted $1.17 EPS. Federal Signal’s quarterly revenue was up 18.7% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. Equities analysts forecast that Federal Signal will post 5.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of FSS. Vanguard Group Inc. increased its stake in Federal Signal by 2.1% during the 4th quarter. Vanguard Group Inc. now owns 6,840,396 shares of the conglomerate’s stock valued at $742,799,000 after buying an additional 138,855 shares during the period. Capital World Investors boosted its stake in Federal Signal by 4.4% during the fourth quarter. Capital World Investors now owns 2,362,294 shares of the conglomerate’s stock valued at $256,522,000 after buying an additional 100,000 shares in the last quarter. State Street Corp boosted its stake in Federal Signal by 0.4% during the second quarter. State Street Corp now owns 2,266,523 shares of the conglomerate’s stock valued at $241,203,000 after buying an additional 7,982 shares in the last quarter. Invesco Ltd. grew its holdings in Federal Signal by 10.2% during the fourth quarter. Invesco Ltd. now owns 2,168,788 shares of the conglomerate’s stock worth $235,509,000 after acquiring an additional 201,440 shares during the period. Finally, Geode Capital Management LLC raised its position in Federal Signal by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 1,725,757 shares of the conglomerate’s stock worth $187,427,000 after acquiring an additional 18,587 shares in the last quarter. 92.73% of the stock is owned by institutional investors and hedge funds.

Key Federal Signal News

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Quarterly earnings surpassed estimates. Federal Signal reported second-quarter adjusted EPS of $1.42, up from $1.17 a year earlier and above analyst estimates of approximately $1.28-$1.29. Revenue increased 18.7% year over year to $670.2 million, slightly exceeding the $667.0 million consensus. Federal Signal Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Record operating performance and stronger demand supported the outlook. The company reported 19% net-sales growth, a 21% improvement in operating income, strong cash generation and an 18% increase in orders, indicating healthy customer demand and operational execution. Federal Signal Reports Record Second Quarter Results
• Positive Sentiment: Full-year EPS guidance was raised above expectations. Federal Signal now expects fiscal 2026 EPS of $5.12-$5.30, compared with the analyst consensus of $4.97. Revenue guidance of $2.6-$2.7 billion was broadly in line with consensus, but the higher profit outlook is a key bullish signal for investors. Federal Signal Posts Q2 Sales in Line With Estimates
• Neutral Sentiment: The earnings call and related presentations provided additional commentary on the quarterly performance, order trends and updated outlook, but the available reports did not identify a material negative development. Federal Signal Q2 2026 Earnings Call Transcript

Federal Signal Company Profile

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.