The Industrials sector is largely comprised of companies that provide logistics or manufacture tools and equipment. This is a broad sector which includes everything from waste management and construction to aerospace and defense manufacturing.
This sector has been around for centuries, kicking off in a big way with the dark smokestacks of the industrial revolution. Back then, textile mills were the big moneymaker, but industry has since evolved and become increasingly diverse.
As such, many of the sector’s big names are old and storied companies. Despite their age, they can be vulnerable. The sector’s fate is often closely linked with the health of the general economy, with its productivity liable to decline sharply in a recession.
Key industry players in the US Industrials sector include:
Honeywell International (NYSE: HON)
Boeing (NYSE: BA)
General Electric (NYSE: GE)
Caterpillar (NYSE: CAT)
Lockheed Martin (NYSE: LMT)
3M (NYSE: MMM)
Q4 2021 Industrials momentum stocks
Momentum refers to the speed or rate of change in stock price. Healthy price trends tend to exhibit strong momentum, and price weakens when momentum subsides. The following stocks have been enjoying a rise in momentum in recent weeks. Can their streak continue through Q4?
P.A.M. Transportation Services Inc
The company operates a truckload transportation and logistics company transporting general commodities in the United States, Mexico, and Canada. The PTSI share price has risen approximately 115% in the past year, and the stock is building momentum. Its relative strength for one month is 19%, three months is 67%, and six months is 41%.
VirTra provides force training, firearms training, and driving simulators for law enforcement, military, educational, and commercial markets worldwide. In September, VirTra received a $1.37 million order from a country in the Middle East for use-of-force simulators and various training tools, software, and accessories.
Quanta Services Inc
Quanta Provides specialty contracting services worldwide. The stock currently trades above recent averages relative to uniform earnings. The company is growing its earnings per share, giving investors confidence in its future potential.
Q4 2021 Industrials growth stocks
Growth in sales and/or earnings per share indicates a business that is growing. Growth stocks can make very lucrative investments when the share price rises in time with the business expansion. But growth stocks are also risky as investment analysis is based on future price action rather than historical price performance.
Veritiv Corp. is a B2B provider of value-added packaging products and services and facility solutions, print, and publishing products to customers in the United States, Canada, Mexico, and internationally. The stock is showing solid EPS growth.
Golden Ocean Group
Golden Ocean Group owns and operates a fleet of dry bulk vessels to transport bulk commodities, such as ores, coal, grains, and fertilizers. GOGL stock is showing strong sales growth.
Encore Wire Corporation
Encore Wire Corporation manufactures and sells electrical building wires and cables for interior electrical wiring in the United States. WIRE stock’s sales and earnings growth are both strong.
Dexterra Groupprovides modular, facilities and workforce accommodation products and services to end markets in Canada. The DXT stock pays a 4% dividend and has a low price-to-sales ratio indicating a potential bargain buy.
TFI International provides transportation and logistics services in the United States, Canada, and Mexico. TFI is due to report its Q3 earnings on October 28, 2021. Analysts are generally bullish on the stock.
Q4 2021 Industrials value stocks
Value investing is a prevalent type of stock market investing advocated by Billionaire investor Warren Buffett. When growth stocks are in favor, value stocks tend to be less popular and vice versa. Value stocks should be trading for less than their intrinsic or book value.
Zim Integrated Shipping Services
Zim Integrated Shipping Services provides container shipping and related services in Israel and internationally. The container shipping industry is seeing excessive demand as many containers are stuck in a logjam. Analysts appear bullish on the stock.
Aecon Group provides construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. Government infrastructure spending is projected to rise, and analysts remain bullish on this stock.