Despite actually being down on the year, industrial stocks led the market on Monday, climbing better than 0.50 percent on the session.
Year-to-date, however, the sector has lost more than one percent compared to a gain of more than six percent for the S&P 500. Normally, investors want to own industrial stocks in a cyclical upturn, and it is not completely clear why the sector has been underperforming in recent months.
If the S&P continues to climb amid increased risk appetite, however, this may not be a bad place to be for the remainder of the year. Although the sector as a whole has fallen slightly on the year, there are a number of industrial names that have soared so for in 2014.
Below is a closer look at five of the top performers in the industrial sector.
Headwaters HW
This Utah-based building products company has surged better than 42 percent in 2014 on the back of a recovery in construction spending.
Over the last month alone, the stock has appreciated a little less than nine percent, giving the company a market-cap of just over $1 billion. Wall Street analysts are estimating that the company's revenue will grow by 12 percent in fiscal 2014 to $786.46 million. The following year, sales are expected to be up 8.60 percent to $853.74 million. The stock currently trades at a forward P/E of just over 25. The company does not currently pay a dividend.
Matrix Service MTRX
This lightly traded stock is likely under the radar of many investors. Matrix Service provides engineering, fabrication, construction and maintenance services primarily to oil, gas, mining and minerals companies. Year-to-date the stock has jumped around 36 percent, making it a top performer in the industrial sector.
Over the last year, shares have nearly doubled. The reason for the big move in MTRX has been aggressive revenue growth in recent quarters. For the June quarter, Wall Street analysts are projecting growth of nearly 51 percent. For the fiscal year, sales are expected to grow by almost 43 percent. At current levels, the shares trade at a forward P/E of 19 and a PEG ratio of 2.27. The company does not currently pay a dividend and has a market cap of $880 million.
Patrick Industries PATK
Patrick is a provider of component parks to the recreational vehicle (RV) market and also provides building products and materials to the manufactured housing industry. The small-cap stock has been an elite performer in 2014, climbing around 38 percent.
Over the last 52-weeks, PATK has more than doubled, giving the company a current market-cap of $426 million. The stock currently trades at a forward P/E of just under 13 and a PEG ratio of 0.96. In recent years, the company has made a number of acquisitions which have added around $170 million in sales. On Monday, the stock rose another 4 percent after Patrick announced the acquisition of three small painting companies.
Texas Industries TXI
This company is a mid-cap construction supply firm located in Dallas, Texas. The stock is currently sitting near all-time high levels as sales have risen in each of the last three fiscal years.
In fiscal 2013, Texas Industries reported revenue of nearly $700 million and analysts are projecting that the company will record sales of over $900 million, representing year over year growth of over 30 percent. The stock has also been buoyed over the last 3 months by increased earnings estimates for the May quarter, with EPS estimates rising from $0.35 to $0.44. During that period, shares have climbed roughly four percent. At current levels, the company has a market-cap of $2.58 billion.
Zebra Technologies ZBRA
Zebra is a nearly $4 billion manufacturer of specialty printing devices. The stock is currently sitting near all-time high levels after climbing better than 73 percent over the last 52-weeks.
Year-to-date, the shares have added almost 46 percent. The company has been able to grow its top-line sales over the last four fiscal years and analysts are projecting sales growth of around 13 percent to $1.17 billion in fiscal 2014. Over the last three months, EPS estimates for the current quarter have moved up $0.03 to $0.82. During this time period, the shares have risen around 12 percent. At current levels, the stock trades at a forward P/E of 18.65. Zebra does not currently pay a dividend.
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