Federal Signal Corporation (NYSE:FSS) Receives Consensus Rating of “Moderate Buy” from Analysts

Federal Signal Corporation (NYSE:FSS) has earned a consensus recommendation of “Moderate Buy” from the six ratings firms that are presently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $126.75.

Several research firms recently weighed in on FSS. Wall Street Zen downgraded Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday. CJS Securities upgraded Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 target price for the company in a research report on Thursday. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th.

Key Federal Signal News

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

• Positive Sentiment: Q4 results and guidance beat — Federal Signal reported Q4 EPS above estimates and revenue beat, with management setting FY2026 guidance that supported the rally; the earnings surprise was the main catalyst for the recent jump in the share price. Earnings Transcript
• Positive Sentiment: Dividend increase — the board raised the quarterly cash dividend by ~7% to $0.15 per share, a shareholder-friendly move that supports income-focused demand. Dividend Press Release
• Positive Sentiment: Analyst upgrades and model lifts — CJS Securities upgraded FSS to “market outperform” with a $140 target, and Sidoti raised FY2026 and FY2027 EPS estimates (and several quarterly estimates), reinforcing the bullish fundamental view. Analyst Upgrade (Benzinga)
• Positive Sentiment: Technical momentum/ratings improvement — FSS received a Relative Strength (RS) rating lift to 74, which likely supported short-term buying from momentum/rotation flows. RS Rating Lift
• Neutral Sentiment: Board changes — the company announced two new director appointments, a governance update that is unlikely to move fundamentals immediately but can matter to long-term investors. Director Appointments
• Negative Sentiment: Small Q1 cut in Sidoti note — while Sidoti raised FY2026 and other quarterly forecasts, it trimmed its Q1 2026 EPS view (from $0.97 to $0.93), a modest near-term revision that could temper expectations for the coming quarter. Sidoti Estimates
• Negative Sentiment: Post-rally consolidation and lighter volume — after strong post-earnings gains, the stock is pulling back on below-average volume and is trading slightly under its 200‑day moving average, suggesting short-term profit-taking and consolidation risk. Trading Summary

Federal Signal Trading Down 0.9%

FSS opened at $116.51 on Friday. The company has a market cap of $7.09 billion, a P/E ratio of 29.06, a PEG ratio of 1.81 and a beta of 1.35. The company has a current ratio of 3.02, a quick ratio of 1.25 and a debt-to-equity ratio of 0.41. The company’s 50 day moving average is $114.60 and its 200-day moving average is $117.28. Federal Signal has a 1-year low of $66.47 and a 1-year high of $132.89.

Federal Signal (NYSE:FSS) last issued its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 EPS for the quarter, beating the consensus estimate of $1.08 by $0.08. Federal Signal had a net margin of 11.31% and a return on equity of 20.14%. The business had revenue of $597.10 million during the quarter, compared to the consensus estimate of $551.36 million. During the same quarter in the prior year, the firm earned $0.87 EPS. The firm’s revenue was up 26.5% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. Equities research analysts predict that Federal Signal will post 3.34 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Federal Signal

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vancity Investment Management Ltd lifted its holdings in shares of Federal Signal by 2.1% during the fourth quarter. Vancity Investment Management Ltd now owns 6,511 shares of the conglomerate’s stock worth $707,000 after purchasing an additional 136 shares during the period. Invesco Ltd. raised its position in Federal Signal by 10.2% during the 4th quarter. Invesco Ltd. now owns 2,168,788 shares of the conglomerate’s stock worth $235,509,000 after purchasing an additional 201,440 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in Federal Signal by 33.9% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 2,565 shares of the conglomerate’s stock worth $279,000 after buying an additional 649 shares during the period. XTX Topco Ltd lifted its holdings in Federal Signal by 15.8% during the 4th quarter. XTX Topco Ltd now owns 4,174 shares of the conglomerate’s stock worth $453,000 after buying an additional 570 shares during the period. Finally, Voloridge Investment Management LLC grew its position in shares of Federal Signal by 10.5% in the 4th quarter. Voloridge Investment Management LLC now owns 171,218 shares of the conglomerate’s stock valued at $18,593,000 after buying an additional 16,204 shares during the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

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.