5 Industrial Stocks to Add to Your Portfolio Right Now

Loading...
Loading...

U.S. factory activity has overcome its persistent sluggishness of last year on the back of steady job creation, a stable dollar and strong overseas demand. The industrials sector has also been gaining a lot of traction lately thanks to President Trump's plan to increase infrastructure spending.

For the first quarter, industrial production – a measure of output at factories, mines and utilities – rose at an annual rate of 1.5 %. The momentum continued in the second quarter with U.S. industrial production logging growth of 1.1% in April compared with March, marking its biggest gain since Feb 2014. Industrial production remained unchanged in May compared with April.

The company delivered a positive average earnings surprise of 40.25% in the last four quarters. The Zacks Consensus Estimate for fiscal 2017 has gone up 28% in the past 60 days and is currently at $4.13, reflecting year-over-year growth of 20.73%. The estimate for fiscal 2018 has gone up 18% to $5.15, reflecting 24.75% year-over-year growth.

Deere & Company DE, producer of agricultural equipment and a leading manufacturer of construction, forestry, and commercial and consumer equipment flaunts a Zacks Rank #1. Deere has a long-term earnings growth rate of 9.17%.

Deere outpaced the Zacks Consensus Estimate in the trailing four quarters, generating an encouraging positive average earnings surprise of 70.41%. The estimate for fiscal 2017 climbed 32% to $6.31 in the past 60 days. The Zacks Consensus Estimate for fiscal 2018 also moved north 23% to $6.82. The projected growth rate for fiscal 2017 is 31.12% and for fiscal 2018 at 8.10%.

Parker-Hannifin Corporation PH, a global diversified manufacturer of motion & control technologies and systems, sports a Zacks Rank #1. It has a long-term earnings growth rate of 9.39%.

The company has a robust earnings surprise history, with consecutive earnings beats in the four trailing quarters, with an average positive earnings surprise history of 14.94%. The Zacks Consensus Estimate for fiscal 2017 has gone up 5% in the past 60 days and is currently at $7.91, reflecting year-over-year growth of 22.37%. The estimate for fiscal 2018 has gone up 6% to $8.90, reflecting 12.62% year-over-year growth.

Pentair plc PNR, a diversified industrial manufacturing company, carries a Zacks Rank #2. It has an estimated earnings growth rate of 11.41%.

Pentair outpaced the Zacks Consensus Estimate in the trailing four quarters, generating an encouraging positive average earnings surprise of 5.29%. The estimate for fiscal 2017 inched up 1% to $3.52. The Zacks Consensus Estimate for fiscal 2018 also moved north 2% to $3.92, in the past 60 days. The projected growth rate for fiscal 2017 is 15.52% and for fiscal 2018 at 11.23%.

Colfax Corporation CFX, carrying a Zacks Rank #2, is one of the leading manufacturing and engineering companies, which specializes in products and services related to gas and fluid handling, and fabrication technology. It has a long-term earnings growth rate of 10.83%.

The company has an average positive earnings surprise of 9.45% in the last four quarters. The Zacks Consensus Estimate for fiscal 2017 has gone up 3% in the past 60 days and is currently at $1.71, reflecting a year-over-year growth of 9.81%. The estimate for fiscal 2018 has gone up 5% to $2.00, reflecting 16.93% year–over-year growth.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report

Caterpillar, Inc. CAT: Free Stock Analysis Report

Deere & Company DE: Free Stock Analysis Report

Parker-Hannifin Corporation PH: Free Stock Analysis Report

Colfax Corporation CFX: Free Stock Analysis Report

Pentair PLC. PNR: Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
Loading...
Loading...
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...