Main industrial actions for August 2021


The industrial sector includes companies that produce machinery, equipment, and supplies used in construction and manufacturing, as well as those that provide related services. These companies are closely tied to the economy and their turnover often falls dramatically during recessions, although each industrial subsector often behaves differently. Known companies include Lockheed Martin Corp. (LMT), Honeywell International Inc. (HON), and 3M Co. (MMM). The industrial sector also includes companies that provide air transport services such as United Airlines Holdings Inc. (UAL).

Industrial stocks, represented by Industrial Select Sector SPDR ETF (XLI), have outperformed the broader market, providing investors with a 45.6% total return compared to the Russell 1000’s total return of 40.1% over the years. last 12 months. These market performance numbers and all statistics in the tables below are as of July 26, 2021.

Here are the top 3 industry stocks with the best value, the fastest growth, and the most momentum.

These are the industrial stocks with the lowest price-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.

Best value industrial stocks
Price ($) Market Cap ($ B) Final 12-month P / E ratio
Louisiana-Pacific Corp. (LPX) 54.06 5.5 7.5
Seaboard Corp. (SEB) 3,943.94 4.6 8.1
Air Lease Corp. (AL) 41.53 4.7 10.6

Source: YCharts

  • Louisiana-Pacific Corp .: Louisiana-Pacific Corp. manufactures building materials and engineered wood products. The company provides siding, cladding and molding of oriented strand board, i-beams, laminated veneer lumber and similar products. It has operations in the United States, Canada, Chile and Brazil.
  • Seaboard Corp .: Seaboard is an international agribusiness and transportation company that mainly produces and processes domestic pork and ship cargo. The company also produces sugar, markets basic products, mills flour and feed, and generates electricity abroad.
  • Air Lease Corp .: Air Lease buys, sells and leases commercial aircraft and also provides fleet management services. Serves airline customers around the world. In the second quarter of fiscal 2021, Air Lease delivered 12 new aircraft and investments totaled about $ 1 billion.

These are the top industrial stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent YoY quarterly revenue growth (YOY) and their most recent YoY quarterly earnings per share (EPS ) growth. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.

Fastest growing industrial stocks
Price ($) Market Cap ($ B) EPS growth (%) Revenue growth (%)
Builders FirstSource Inc. (BLDR) 44.01 9.1 1,090 133.6
Advanced Drainage Systems Inc. (WMS) 121.15 8.7 2,200 19.7
Louisiana-Pacific Corp. (LPX) 54.06 5.5 934.5 73.9

Source: YCharts

  • Constructors FirstSource Inc .: Builders FirstSource manufactures and distributes construction products and provides integrated services to professional home builders. It is one of the largest suppliers in the construction industry. The company transferred the listing of its Nasdaq common stock to the New York Stock Exchange on July 19.
  • Advanced Drainage Systems Inc .: Advanced Drainage Systems manufactures water drainage structures and supplies, including pipe fittings, leach chambers, ponds, grates, and grease interceptors.
  • Louisiana-Pacific Corp .: See company description above.

These are the industrial stocks that had the highest total returns in the last 12 months.

Industrial actions with greater momentum
Price ($) Market Cap ($ B) Total return at 12 months (%)
Generac Holdings Inc. (GNRC) 444.65 28.0 228.8
Plug Power Inc. (PLUG) 27.07 15.4 217.7
Advanced Drainage Systems Inc. (WMS) 121.15 8.7 150.2
Russell 1000 N / A N / A 40.1
Select Industry SPDR ETF (XLI) N / A N / A 45.6

Source: YCharts

  • Generac Holdings Inc .: Generac designs and manufactures power generation equipment and other powered products. It sells commercial, residential, mobile and industrial generators, as well as other products. For the second quarter of 2021, Generac Holdings reported a 92.1% year-on-year increase in net income attributable to the company on top of net sales growth of 68.2% year-on-year. The performance was driven by strong gains in both residential and commercial and industrial sales.
  • Plug Power Inc .: Plug Power designs, manufactures and sells hydrogen and fuel cell systems used in electric forklifts and other equipment. The company serves customers in the retail, grocery, food manufacturing and distribution sectors around the world. On July 14, Plug Power announced a partnership with Apex Clean Energy involving both a 345 MW wind power purchase agreement and a development services agreement for a green hydrogen production plant. The energy purchased under the agreement will supply the hydrogen plant, which is being jointly developed by Plug Power and Apex.
  • Advanced Drainage Systems Inc .: See company description above.

The comments, opinions and analysis expressed in this document are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt an investment strategy. While we believe that the information provided in this document is reliable, we do not guarantee its accuracy or completeness. The opinions and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analysis included in our content are presented on the date of publication and may change without notice. The material is not intended to be a complete analysis of all material facts relating to any country, region, market, industry, investment, or strategy.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow to produce accurate and unbiased content at our
editorial policy.

Take the next step to invest

×

The offers in this table are from associations from which Investopedia receives compensation. This offset can affect how and where listings appear. Investopedia does not include all offers available on the market.

www.investopedia.com

Share
READ ALSO:  Definition of Chief Financial Officer (CFO)
About the author

Mark Holland

Leave a comment: