Latest news with #industrials
Yahoo
a day ago
- Business
- Yahoo
2 Industrials Stocks with Competitive Advantages and 1 We Find Risky
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems confused about where we could go next. This uncertainty has led to a flat return for the industry over the past six months while the S&P 500 was up 4.1%. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two industrials stocks boasting durable advantages and one we're steering clear of. One IndustrialsStock to Sell: TPI Composites (TPIC) Market Cap: $44.9 million Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems. Why Should You Dump TPIC? Offerings couldn't generate interest as its billings have averaged 11.5% declines over the past two years Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes TPI Composites's stock price of $0.94 implies a valuation ratio of 0.8x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TPIC in your portfolio, it's free. Two Industrials Stocks to Watch: Axon (AXON) Market Cap: $58.86 billion Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians. Why Is AXON a Good Business? Products are seeing elevated demand as its unit sales averaged 32% growth over the past two years Free cash flow margin expanded by 20.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends Rising returns on capital show the company is starting to reap the benefits of its past investments At $755 per share, Axon trades at 127x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Ingersoll Rand (IR) Market Cap: $34.52 billion Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions. Why Could IR Be a Winner? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Incremental sales over the last five years have been highly profitable as its earnings per share increased by 18.4% annually, topping its revenue gains Robust free cash flow margin of 15.7% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business Ingersoll Rand is trading at $85.53 per share, or 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
1 Industrials Stock to Keep an Eye On and 2 That Underwhelm
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. The market seems to be debating where we are in the cycle as the industrials stocks were flat over the past six months. At the same time, the S&P 500 rose by 4.1%. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one industrials stock poised to generate sustainable market-beating returns and two that may face trouble. Two IndustrialsStocks to Sell: EnerSys (ENS) Market Cap: $3.48 billion Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries. Why Is ENS Not Exciting? Declining unit sales over the past two years imply it may need to invest in improvements to get back on track Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.6% Free cash flow margin shrank by 5.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive EnerSys's stock price of $88.69 implies a valuation ratio of 8.7x forward P/E. To fully understand why you should be careful with ENS, check out our full research report (it's free). Stanley Black & Decker (SWK) Market Cap: $10.85 billion With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Why Do We Steer Clear of SWK? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Earnings per share fell by 8.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.7 percentage points At $70.44 per share, Stanley Black & Decker trades at 13.1x forward P/E. Read our free research report to see why you should think twice about including SWK in your portfolio, it's free. One Industrials Stock to Watch: Allison Transmission (ALSN) Market Cap: $7.33 billion Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators. Why Does ALSN Stand Out? Offerings are mission-critical for businesses and result in a best-in-class gross margin of 47.7% Excellent operating margin of 28.8% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs Strong free cash flow margin of 20.2% enables it to reinvest or return capital consistently Allison Transmission is trading at $87.46 per share, or 8.5x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it's free. High-Quality Stocks for All Market Conditions Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
3 Reasons to Sell GLW and 1 Stock to Buy Instead
Corning trades at $54.39 per share and has stayed right on track with the overall market, gaining 5.5% over the last six months. At the same time, the S&P 500 has returned 4.1%. Is now the time to buy Corning, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Why Do We Think Corning Will Underperform? We're cautious about Corning. Here are three reasons why we avoid GLW and a stock we'd rather own. 1. Long-Term Revenue Growth Disappoints Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Corning's 5.1% annualized revenue growth over the last five years was tepid. This was below our standard for the industrials sector. 2. Free Cash Flow Margin Dropping If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, Corning's margin dropped by 4.2 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Corning's free cash flow margin for the trailing 12 months was 9.3%. 3. Previous Growth Initiatives Haven't Impressed Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Corning historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 5.2%, somewhat low compared to the best industrials companies that consistently pump out 20%+. Final Judgment We see the value of companies helping their customers, but in the case of Corning, we're out. That said, the stock currently trades at 22.6× forward P/E (or $54.39 per share). This multiple tells us a lot of good news is priced in - we think other companies feature superior fundamentals at the moment. Let us point you toward a fast-growing restaurant franchise with an A+ ranch dressing sauce. Stocks We Like More Than Corning Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
4 days ago
- Business
- Yahoo
Industrial sector's gains to be tested as earnings ramp up
By Lewis Krauskopf NEW YORK (Reuters) -The industrial sector has led the way for U.S. equities during a topsy-turvy year on Wall Street, but its strength will be tested as earnings season heats up. S&P 500 industrials, which include aerospace companies, electrical equipment and machinery makers, transportation firms and building products companies, have gained 15% so far in 2025. That's the best year-to-date performance of the S&P 500's 11 sectors and more than double the gain of the overall index. Momentum for the industrials sector and the broader market will be in focus with a heavy upcoming week of second-quarter earnings, which includes reports from more than one-fifth of the S&P 500, led by Alphabet and Tesla, the first of the "Magnificent Seven" megacap tech and growth companies to report. The S&P 500 has surged 26% since April, as investors shook off fears about a recession which had stemmed from President Donald Trump's "Liberation Day" tariff announcement. This earnings season "seems to be especially important because of the rebound that the market has had," said Chuck Carlson, chief executive officer at Horizon Investment Services. "I would think that that has built in a fair amount of optimism in terms of earnings." A number of industrials will be in the earnings spotlight as well. Aerospace and defense stocks have boosted the sector's performance this year, driven by heightened geopolitical tensions in the Middle East and Ukraine and fresh spending commitments by Germany and other nations. The S&P 500 aerospace and defense industry group has surged 30% this year. Defense companies to report in the coming week include RTX, Lockheed Martin and General Dynamics. GE Aerospace, whose shares have soared about 55% this year, raised its 2025 profit forecast on Thursday. Another industrial company spun off from legacy General Electric last year, GE Vernova, has seen its shares skyrocket over 70% this year, making it the best-performing industrial sector stock. The power equipment maker's results are due Wednesday. The push for reshoring infrastructure and expansion of artificial intelligence, which has lifted demand for cooling systems and factory automation, are two themes that have supported a number of stocks in the industry, including Eaton and Rockwell Automation, said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. Another stock that has supported the industrial sector this year: Ride-hailing giant Uber, whose shares are up roughly 50%. "Unlike many non-Tech groups, there are a lot of solid stories here that don't rely on macro forces to deliver solid forward returns," Nicholas Colas, co-founder of DataTrek Research, said in a note on Wednesday. Large cap industrials still look attractive despite the group's recent run, Colas said. Indeed, while industrials have been viewed historically as closely tied to the fortunes of the economy, declines for a number of growth-cycle-linked stocks have weighed on the sector's performance. Shares of package delivery firms UPS and FedEx have posted sharp declines, while airlines including United Airlines and trucking companies such as JB Hunt Transport Services are also negative for the year. "There are economically sensitive (areas) within industrials that are not doing well," said Walter Todd, chief investment officer at Greenwood Capital. Other industrial companies slated to report in the coming week are Honeywell, Union Pacific and United Rentals. Beyond earnings, Wall Street will continue to focus on any developments on trade ahead of August 1, when higher U.S. tariffs on numerous trading partners are set to take effect. Investors will also be sensitive to news on the Federal Reserve, with Fed Chair Jerome Powell facing fresh pressure from Trump to resign as the president presses the central bank to lower interest rates. The Fed's next monetary policy meeting is July 29-30. The S&P 500 has climbed about 7% so far this year. The market has shown resilience despite "an incredible amount of uncertainty," said Eric Kuby, chief investment officer at North Star Investment Management Corp. "We continue to be surprised at how well stocks are trading given a lot of what would seem to be significant headwinds," Kuby said.
Bloomberg
15-07-2025
- Business
- Bloomberg
Nomura's Head of Greentech in Asia Chaudhry Is Said to Depart
Nomura Holdings Inc. 's head of greentech industrials and infrastructure dealmaking in Asia ex-Japan Anoop Chaudhry has left the Japanese lender, according to people familiar with the matter. Chaudhry was a Hong Kong-based managing director at Nomura's investment banking team, the people said, asking not to be identified discussing confidential information.
