Top Industrial Stocks To Watch Before The New Year
Industrial stocks don’t often come to the top of the mind of many investors. After all, the stock market today offers various investment opportunities with compelling narratives. That said, the industrial sector should not be overlooked. Some argue that it represents the backbone of the economy. The industry includes companies that are involved in aerospace and defense, industrial machinery, tools, waste management, construction, and metal fabrication. Hence, the performance of the industry is largely tied to the state of the economy. And with the economy recovering since the peak of the pandemic, things could be looking up for the sector again.
Considering the crucial role that the industrial sector plays, there is often no shortage of exciting developments. For instance, Boeing (NYSE: BA) announced yesterday that it received an order for 19 Boeing 767 Freighters from United Parcel Service (NYSE: UPS). At a time of robust air cargo demand, the new jets will improve the reliability and efficiency of UPS’s operations. With that in mind, it may be worth keeping a close watch on top industrial stocks right now. So, here are some of the top names to look out for in the stock market.
Best Industrial Stocks To Watch Right Now
- Atkore Inc (NYSE: ATKR)
- Delta Air Lines, Inc (NYSE: DAL)
- FedEx Corporation (NYSE: FDX)
- Louisiana-Pacific Corporation (NYSE: LPX)
Atkore
Let us start by reviewing the manufacturer of electrical raceway products, Atkore. Essentially, the company operates in the Electrical segment and Safety and Infrastructure segment. Its products are primarily offered for non-residential construction and renovation markets while its safety and infrastructure solutions are for the construction and industrial markets.
Atkore has been on an acquisition streak this week. On Monday, the company announced the acquisition of Sasco Tubes & Roll Farming. This is a Canadian manufacturer of metal framing and related products. Now, this acquisition would complement Atkore’s existing product portfolio and reliably allow the company to improve its customer experience by providing a broader range of solutions.
Furthermore, it also announced the acquisition of the assets of Four Star Industries yesterday. The manufacturer of High Density Polyethylene (HDPE) conduit primarily serves the telecommunications, utility, infrastructure, and datacom markets. Again, this would expand Atkore’s product portfolio to include growing markets such as broadband and renewable energy. Given these exciting developments, should you be keeping a close eye on ATKR stock right now?
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Delta Air Lines
Following that, we have one of the top airlines in the country, Delta Air. Put simply, the company provides scheduled air transportation for passengers and cargo throughout the world. On one hand, its airline segment is managed as a single business unit that provides scheduled air transportation. On another hand, its refinery segment operates by providing jet fuel to the airline segment from its own production and agreements with third parties.
Airlines stocks such as DAL stock received a boost earlier this week as Bank of America Global Research released a report stating that the Omicron variant is not having a significant impact on domestic flight bookings. Also, corporate bookings through large travel agencies improved last week. The bank noted that this was the “best week” for corporate bookings since the onset of the pandemic.
Investors are also showing signs of optimism as Delta Air announced its three-year financial targets and outlook last week. The company believes that it will deliver meaningful profitability next year. This would put it on a path to improved earnings power beyond pre-pandemic levels by 2024. Moreover, its top financial priority is restoring its financial foundation, with a focus on efficiency and cash generation. With all these in mind, would you add DAL stock to your watchlist?
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FedEx
FedEx is a company that specializes in transportation, e-commerce, and business services. The company’s segments include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. Yesterday, J.P. Morgan raised its price target on FDX stock from $305 to $312. The investment bank believes that stronger pricing, higher fuel surcharge recoveries, and a favorable mix should benefit the company long term.
Last week, the company announced a better-than-expected second-quarter earnings report. Its revenue came in at $23.5 billion, an increase of 14% year-over-year. Meanwhile, its earnings came in flat at $4.83 per share, surpassing the expected earnings of $4.28. In light of this, FedEx raised its fiscal 2022 adjusted EPS of $20.50 to $21.50 compared to the prior forecast of $19.75 to $21.00. Safe to say, the company is on track to another strong financial year.
On top of that, the company also received its first five electric Light Commercial Vehicles from BrightDrop last week. This all-electric, zero-tailpipe emissions vehicle will play an important role in the company’s goal to make its global operations carbon neutral by 2040. All things considered, it should not be a surprise that investors are paying close attention to FDX stock right now.
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Louisiana-Pacific Corporation
Last but not least, we will be looking at the provider of building solutions, Louisiana-Pacific (LP). In detail, the company manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. LPX stock has been on an impressive run, almost doubling its value within the past year.
On Monday, the company announced that it will build a new LP® SmartSide® ExpertFinish® prefinishing facility on 75 acres in the Town of Bath, New York. The facility is projected to add more than 60 new jobs with a targeted opening date in the third quarter of 2023. Hence, the capacity expansion plans would help support the strong customer demand that the company is seeing since its launch in 2020.
It is also noteworthy that LP appointed Jose A. Bayardo to its Board of Directors earlier this month. Mr. Jose was a Senior Vice President and Chief Financial Officer at energy solutions company NOV (NYSE: NOV) before joining the company. So, he would certainly be a valuable addition to the company as he brings a wealth of experience in finance, strategic planning, mergers, and acquisitions. Given all these, would you consider LPX stock a top industrial stock to watch?
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