Are These The Best Industrial Stocks To Invest In Right Now?
For investors keeping an eye out for the most active stocks today, industrial stocks could be worth looking at. While this area of the stock market may be closely linked to the state of the economy, investors may not want to overlook it just yet. After all, industrials play a crucial role in making the fundamental components behind most production lines today. All of which span varying industries across the board. Additionally, firms in the transportation and logistics services industry also fall under the umbrella of industrial stocks. Considering the importance of these businesses, it is not surprising why many are confident in the industry’s long-term potential.
Therefore, even with the 75-basis point rate increase from the Federal Reserve, industrials would remain an option for some. If anything, the industry does not seem to be slowing down in the least bit as well. For instance, we could look at Boeing (NYSE: BA). Just earlier this week, China Southern Airlines (NYSE: ZNH) conducted test flights with a Boeing 737 MAX aircraft. According to sources from Reuters, this was in the form of a two-hour flight from Guangzhou to Nanyang. Following some setbacks in March, it seems that Chinese airlines are beginning to warm up to the Boeing aircraft again.
Another industrial company worth mentioning is Flex (NASDAQ: FLEX). Recently, the company has announced its expansion in the automotive industry operations in Jalisco, Mexico. In summary, a new 145,000-square-foot facility will be built and will serve as a strategic automotive manufacturing hub. This hub will be producing advanced electronic components to accelerate the era of electric and autonomous vehicles. With all this in mind, here are three more top industrial stocks to watch out for in the stock market now.
Industrial Stocks to Buy [Or Sell] This Month
- Jabil Inc. (NYSE: JBL)
- KLA Corporation (NASDAQ: KLAC)
- Commercial Metals Company (NYSE: CMC)
Jabil Inc.
To begin with, we have the global manufacturing services company Jabil. In particular, it provides electronics design, production, product management, and repair services to a variety of companies across industries worldwide. The company operates in two segments, Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). On one hand, its EMS segment focuses on leveraging information technology, supply chain design and engineering, and core electronics technologies. Furthermore, Jabil’s DMS offers engineering services with a focus on material sciences and technologies.
This week, Jabil announced its fiscal 2022 third-quarter report. Among the highlights in the press release, net revenue is $8.3 billion, representing a 15.3% year-over-year. Regarding its main divisions, EMS and DMS revenue are up by 23% and 7% year-over-year respectively. Furthermore, the company’s earnings per share for the quarter is $1.72. For reference, this would be versus Wall Street’s consensus figure of $1.62. Jabil also anticipates a revenue of $32.8 billion with an earnings per share of $7.45 for the current fiscal year.
Recently, Badger Technologies, a product division of Jabil and a leader in retail automation, has deployed a pilot program with Vallarta Supermarkets. At a chain of 53 full-service markets in California, consumers may experience multipurpose autonomous robots supporting retailers by identifying hazards. Steve Netherton, the CIO and Vice President of Continuous Improvement at Vallarta Supermarkets said, “When we look at where to invest in innovative technologies, improving store operations is always a high priority.” Knowing all of this, is JBL stock on your watchlist?
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KLA Corporation
KLA Corporation is a capital equipment company that supplies process control and yield management systems. In essence, it provides advanced process control and process-enabling solutions for manufacturing reticles and wafers, alongside integrated circuits and packaging. It mainly serves the semiconductor industry alongside other related electronics industries. This week, the company hosted its Investor Day.
Diving in, the company announced a new $6 billion share repurchase authorization. This includes approximately $3 billion for the Accelerated Share Repurchase to be completed in the next 3 to 6 months. The remaining amount will then be repurchased over the next 12 to 18 months, subject to market conditions. KLA also announced a 24% increase in its quarterly dividend to $1.30 per share from $1.05. This would also be the 13th consecutive annual dividend increase for KLA. Besides, KLA affirms its current June 2022 quarter guidance, with a revenue between $2.3 billion to $2.5 billion. Non-GAAP diluted earnings per share is from a range of $4.93 to $6.03.
In April, the company announced the launch of Frontline Cloud Services, a software solution that accelerates design for manufacturability (DFM) analysis and time-to-market for complex printed circuit boards (PCBs). “As a leader in PCB CAM, engineering, and Industry 4.0 solutions, our customers share with us the bottlenecks that slow down their PCB manufacturing process,” said Eran Lazar, general manager, Frontline division, and vice president at KLA. “We decided to tackle the challenges of DFM analysis by taking advantage of the unlimited computational power of the cloud, while keeping the proven application intact.” Given this piece of news, is KLA stock worth watching right now?
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Commercial Metals Company
Commercial Metals Company (CMC) is a steel and metal manufacturer based in Texas. The company is a leading provider of construction reinforcement solutions, capable of meeting the most rigorous demands of the markets it serves. In fact, as one of the largest manufacturers of steel reinforcing bars in North America and Central Europe, it is a key supplier to construction projects across the two continents.
On Thursday, the company reported its third-quarter financials for fiscal 2022. Firstly, it reported a net earnings of $312.4 million or $2.54 per diluted share. This was a 140% increase year-over-year. Secondly, it posted net sales of $2.5 billion for the quarter, a 38% increase year-over-year. According to its press release, the company says that demand for its steel products in North America remains robust with several key internal and external indicators pointing toward continued strength.
Despite shipment volumes of finished steel remaining unchanged, the average selling price of steel products increased by $316 per ton compared to a year earlier. The average selling price for downstream products also increased by $281 per ton from the prior year. All things considered, is CMC stock a top industrial stock to invest in today?
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