Industrials

  • This Industry Is Poised to Surge Amid Depressed Expectations

    By Justin Carley - March 5, 2013 | Tickers: CAT, CMI, DE

    Machinery stocks have been pushed to the side in the last twelve months following a legendary boom/bust/boom during the 2006-2010 timeframe.  Global growth has been weak of late and the impact has been felt on related equities.  The S&P 500 Machinery Index has lagged the broader S&P 500 by more than 11% during the past year.  Recent quarterly results were generally bad and forward guidance offered nothing to get excited about.  But with global growth poised to improve in 2013 and massive reflationary efforts still underway by central banks across the globe, these pessimistic views may prove to be just that.  The combination of higher earnings expectations, multiple expansion, and a bullish equity backdrop could see several stocks in this industry surge to new all-time highs. 

  • Weak Economy but Strong Industrials...How?

    By Masam Abbas - February 13, 2013 | Tickers: ADT, GDI, GE

    My followers might remember that I extensively covered industrial stocks before the start of the earnings cycle. Most of them have realized their gains. However, I still believe that three of those will still experience a rally and the good news has not been properly factored in these stocks:

    General Electric (NYSE: GE)

    One of the Dogs of the Dow, holding this stock has been considered as riskless as a more »

  • An Analysis of Barron’s 10 Stocks for 2013- Part I

    By Justin Carley - December 19, 2012 | Tickers: AAPL, BKS, BLK, F, GD, JPM, TXT | Editor's Choice

    Barron’s is out with their 10 favorite stocks for 2013.  I highlighted their performance in 2012 and they did a good job with market-beating success.  These lists always elicit plenty of emotions from investors of all varieties, but it helps to put a little context into the picks.  First, I believe Barron’s tilts toward the large-cap space and seeks a group beta roughly in-line with the S&P more »

  • Gauging the Health of the US Economy – Part 1

    By Mike Richardson - December 17, 2012 | Tickers: CAT, DE, JOY

    The political pundits have had their way with the microphones and keyboards for far too long.  The headlines and talking heads have a sense of distorted reality that, unfortunately, confuses the general public and leads to greater investor uncertainty.  With the clouds of hot air finally evaporating from the campaign trails, it’s time to find some true barometers of the overall US economy. 

    For the last two years, the more »

  • 3 Reasons Why you Need to be in Equities

    By Justin Carley - October 29, 2012 | Tickers: AA, BEAM, CAT, CSCO, UTX

    Markets are starting to roll over, with 3Q 2012 S&P 500 earnings on pace to record their first yearly decline in five years.  Follow this up with forward guidance from industry bellwethers that in many cases are downright scary (Apple, Amazon, Caterpillar, DuPont, and 3M to name a few), and no wonder the S&P 500 has declined 4% from its highs.  In fact, it is surprising it hasn more »

  • Capacity Utilization is Still Going Strong for U.S. Industry

    By Joshua Bondy - September 10, 2012 | Tickers: GE, XLI, IYJ, VIS

    Capacity utilization is a very important metric used to judge the strength of American industry. With rising transportation costs and the push to bring the consumer and producer closer together companies are starting to bring factories back to America. The risk of the trade wars and escalating import tariffs between different nations gives extra incentive for large manufactures to place factories on both sides of the Pacific. The recent scuffle more »

  • Can BorgWarner Turbo Boost your Portfolio?

    By James Fantaci - July 17, 2012 | Tickers: BWA, F, GM

    With the structural issues in the Eurozone economy and the threat of an overall global slowdown, many cyclical companies have retreated significantly in anticipation of what seems like perennial concerns about global recession 2.0.  Signs of a slowdown especially in Europe are real and have merit, so why invest in BorgWarner (NYSE: BWA)

    BorgWarner may fall within the category of a cyclical company as they are directly tied in more »

  • Innovative Technology Leads 21st Century Manufacturing

    By Tony Daltorio - June 21, 2012 | Tickers: DDD, ABB, GE, HPQ, SSYS

    Manufacturing is usually thought of by most investors as a dull, stodgy, slow growth, low profits sector that is best avoided. But if investors assume that to be true, they will be missing out on an exciting new sector of manufacturing, one that uses the latest technologies and which promises to increase manufacturing precision while lowering costs by billions of dollars for manufacturers worldwide. 

    That sector is high-tech additive or more »

  • Fiat to Join in US Manufacturing Renaissance

    By Tony Daltorio - June 4, 2012 | Tickers: CAT, CNH, FIATY.PK, GE | Editor's Choice

    The chairman of Fiat SpA (NASDAQOTH: FIATY.PK) since 2004, Sergio Marchionne, has been driving to reorder and globalize the company. Part of that plan involved Fiat itself taking majority control of US automaker Chrysler, of which it now owns 58.5 percent. He plans to bring Chrysler public again by 2014, most likely in the form of Fiat listing on a major US exchange. 

    Just last week Mr. Marchionne more »

  • Amazon Expands Into Industrial Supplies

    By Tony Daltorio - May 24, 2012 | Tickers: AMZN, FAST, MSM, GWW

    In the internet space, one of the most fearsome competitors has to be Amazon.com (NASDAQ: AMZN). Just ask book publishing companies. Even Apple has to be aware of the company. But now Amazon has its sights set on another sector which it hopes to dominate...the $160 billion market for industrial supplies in the United States. 

    Some of the leading companies in this sector include MSC Industrial Direct (NYSE: MSMmore »)

  • Get Ready for Summer: Add Scotts Miracle-Gro to your Portfolio

    By Frank Constantino - May 21, 2012 | Tickers: MON, SMG

    You don't have to love the smell of fresh-cut grass to love shares of The Scotts Miracle-Gro Company (NYSE: SMG).  However, if you are proud of your green thumb, you probably use their products - and may swear by them.  In talking with lawn and garden enthusiasts for this article, I came to realize that Scotts has a loyal customer base that believes in their premium quality merchandise.

    Scotts develops more »

  • US Industrial Companies Finding Growth

    By Tony Daltorio - May 2, 2012 | Tickers: CAT, DD, GE, UTX

    It has been a good quarterly earnings season for US industrial companies. Companies such as Boeing and Caterpillar raised their outlook for 2012 while others like General Electric and DuPont comfortably beat Wall Street expectations. 

    However, some analysts say they see storm clouds looming on the horizon for these companies as a global slowdown takes hold, particularly in China. There is some data which supports this thesis. US business investment more »

  • Waste Management: Turning Trash Into Cash

    By Frank Constantino - April 30, 2012 | Tickers: RSG, WCN, WM | Editor's Choice

    Trash is a certainty in life and there are limited options for getting rid of it.  The non-hazardous solid waste industry generates $50 billion in annual revenues doing just that.  It's an industry that grows slowly and produces mountains of cash for its operators.  It's also an old industry going through big changes.

    Waste Management (NYSE: WM) is the leading provider of comprehensive waste management services in North more »

  • Railroad Stocks: Not as Safe as You Think

    By Justin Carley - April 12, 2012 | Tickers: CSX, GWR, KSU, NSC, UNP

    When Warren Buffet and Berkshire Hathaway made a $34 billion investment to buy the remaining shares in Burlington Northern Santa Fe, railroad stocks were off to the races.  Nearly all of them surged past their pre-recession highs.  Berkshire’s purchase gave the impression that they are utility-like, recession-resistant and the source for steady returns year after year.  It is easy to fall into the trap that these are buy and hold investments.  To the contrary, this industry is facing major headwinds, yet the valuation on these stocks is priced for perfection.  The prices have recently diverged from the broader market, a sign of weakness.  When fundamentals are weakening and the valuation is rich- run for the hills.  Investors should sell their railroad stocks now.

  • Reasons to Bet on the Farm

    By Susannah Thomas - February 15, 2012 | Tickers: CAT, CNH, DE

    Greece’s shrinking GDP, which came under forecasts at a rate of negative 7 percent, raised more concerns about the debt-ridden country’s need for further austerity and continues to worry investors about the potential for another financial crisis.

    At home consumer confidence fell back to November 2011 levels, retail sales did not reach their forecasts and prices appeared to have remain unchanged during December, the month that many Americans more »

  • 12 Stocks to Buy and Forget for 2012

    By Kirk Spano - December 27, 2011 | Tickers: APA, AMAT, BRK-B, DISH, EXAS, GE, GMO, KSS, MRK, MON, BTU, SPWR

    If you hold one stock in your portfolio, you carry 100% of the risk of losing all of your money.  As you diversify your holdings from one company to two to three, you are gradually reducing your risk of losing everything. We all know this. What most investors don’t know is that a 12 stock portfolio of domestic companies cuts your company specific risk about 90%.  There are some pretty strong arguments for owning these dozen stocks in your portfolio in 2012.

  • Can Zipcar Become Profitable?

    By Shawn Robinson - December 27, 2011 | Tickers: HTZ, OUTR, ZIP.DL2

    Zipcar (UNKNOWN: ZIP.DL2) operates a car sharing business in 16 major cities and over 250 college campuses that is growing rapidly. The service is popular among college students and those living in dense metropolitan areas as it offers a convenient way of accessing a vehicle without the hassle of ownership. Even with 65% annual growth in members over the last five years, consistent profitability has been elusive for the 11 more »

  • Passively Achieving Your Goals With Options Part1

    By Nikhil Shamapant - December 27, 2011 | Tickers: AFL, HAS, KFN, PEP, PBR

    Part 1-Passive Strategies to Consistently Achieve Your Investment Goals

    Sounds like the perfect scam huh? That's why I added the word ‘passive.’ None of those penny stock pump and dump scammers advertise ‘passive investing.’ Why? No one looking for 1000% returns is at all passive about it. Actively managed portfolios tend to have higher goals for investment returns. Considering the fact that passively managed portfolios often don’t even more »

  • Themes From the New High List

    By David Talley - December 27, 2011 | Tickers: VALE, DECK, SI, SVU, KR

    The new high and new low lists serve as important places to gather information about which trends and spaces are working and which are not. Looking over today's new high list, two themes become abundantly clear: dividends and domestic.

    The list is dominated by high-yielding companies (nearly half of the companies yield more than 2.5%) and dividend payers in general (only a quarter of the companies on the more »

  • Bank of Deere

    By David Talley - December 27, 2011 | Tickers: DE, GE

    It should be no surprise that John Deere (NYSE: DE) has a financial services division. After all, the machines it produces are quite expensive and many customers require financing. It is an obvious business decision that Deere cut out the bank and offer financing services to their customers. However, it is extremely important to pay attention to the details of financial arms, lest they unknowingly (or knowingly) blow up the more »

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