Latest news with #industrials
Forbes
3 days ago
- Business
- Forbes
5 Best Stocks To Buy Now For June 2025
Market volatility and recent trade developments have created distinct opportunities across multiple sectors, from artificial intelligence powerhouses to healthcare giants navigating regulatory changes. Savvy investors are recognizing that current market dislocations often mask underlying business strength, particularly among companies with proven track records of innovation, market leadership and adaptability to changing economic conditions. This analysis identifies five compelling investment opportunities spanning technology, healthcare, industrials and data analytics sectors. Each selection represents companies well-positioned to benefit from long-term secular trends, trading at levels that offer attractive risk-adjusted returns for investors with suitable time horizons and risk tolerance. The selection process emphasized companies demonstrating strong competitive moats, consistent revenue growth and clear catalysts for future expansion. Priority was given to market leaders within their respective industries, particularly those benefiting from transformative trends such as the adoption of artificial intelligence, healthcare innovation, industrial automation, and data-driven decision-making across enterprise markets. Each company needed to show resilient business models capable of generating sustainable cash flows while investing in growth initiatives. Special consideration was given to management teams with proven execution capabilities, strong balance sheets that provide strategic flexibility and business models positioned to benefit from ongoing technological and demographic shifts reshaping the global economy. Honeywell International stands as a premier diversified technology and manufacturing company, operating across aerospace, building technologies, performance materials and safety solutions. The company has successfully transformed itself into a software-enabled industrial leader, developing connected solutions that address critical challenges in automation, energy efficiency and digital transformation. Recent strategic initiatives focus on sustainable technologies, including renewable fuels, carbon capture solutions and next-generation automation systems. The company's diversified portfolio provides natural hedging against industry-specific downturns while positioning it to benefit from multiple long-term growth drivers. Honeywell's aerospace division serves both commercial and defense markets. At the same time, its building technologies segment capitalizes on increasing demand for innovative building solutions and energy management systems that reduce operational costs and environmental impact. Honeywell represents exceptional value in the industrial technology space, combining steady dividend income with significant growth potential from emerging technologies. The company's transformation toward higher-margin software and services has improved profitability metrics while reducing cyclical exposure. Operating margins have expanded to over 20%, with return on invested capital consistently above 15%, reflecting disciplined capital allocation and strong pricing power. Recent aerospace recovery trends benefit multiple business segments as commercial aviation continues normalizing and defense spending remains robust globally. Honeywell's Aerospace division contributed nearly 40% of total revenue in the last fiscal year and is expected to grow further as backlogs normalize and global air travel rebounds. The Building Technologies division positions Honeywell perfectly for the ongoing shift toward smart infrastructure and energy-efficient solutions, particularly as regulatory requirements drive the adoption of automated building management systems. This segment also supports a recurring revenue model through service contracts and software subscriptions, contributing to earnings stability. Management's consistent operational execution, combined with strategic investments in breakthrough technologies like sustainable aviation fuel and quantum computing applications, creates multiple pathways for long-term value creation while maintaining attractive current income through reliable dividend payments. With a payout ratio under 50% and consistent dividend increases, Honeywell remains a compelling choice for income-focused investors seeking exposure to industrial innovation. NVIDIA Corporation has emerged as the undisputed leader in artificial intelligence computing, providing the essential hardware and software infrastructure powering the global AI revolution. The company's graphics processing units form the foundation for machine learning, data center acceleration, autonomous vehicle development and scientific computing applications across virtually every industry. Recent strategic partnerships, including collaborations with major technology companies and governments, demonstrate the critical nature of NVIDIA's technology in next-generation computing applications. The company's comprehensive AI platform extends beyond hardware to encompass software frameworks, development tools and cloud services, fostering long-term customer relationships and generating recurring revenue streams. NVIDIA's data center business has become the primary driver of growth. At the same time, gaming, professional visualization, and automotive segments provide diversification and additional expansion opportunities as AI capabilities are integrated across more applications. NVIDIA occupies a virtually unassailable position in one of the most transformative technology trends of this generation, with artificial intelligence adoption still in its early stages across most industries. Recent partnerships, including collaborations with Saudi Arabia on AI initiatives, demonstrate the global strategic importance of NVIDIA's technology and provide new revenue opportunities in emerging markets seeking to build AI capabilities. The company's technological moat continues widening as competitors struggle to match NVIDIA's integrated hardware-software approach and extensive developer ecosystem. Gross margins remain strong, above 70%, reflecting the company's ability to command premium pricing in a high-demand market. While the stock trades at premium valuations, the massive addressable market for AI computing, combined with NVIDIA's dominant market share and accelerating adoption rates across enterprise and government sectors, justifies higher multiples. The company's ability to maintain pricing power while scaling production positions it for sustained revenue and margin expansion as AI infrastructure investments accelerate globally. UnitedHealth Group operates as America's largest healthcare company, serving over 50 million members through its UnitedHealthcare insurance business while providing comprehensive health services through its rapidly growing Optum division. The company has built an integrated healthcare ecosystem that combines insurance, pharmacy benefits, medical care delivery and health technology solutions, improving patient outcomes while reducing overall system costs. Despite recent stock volatility related to regulatory concerns, UnitedHealth's fundamental business model remains strong, benefiting from aging demographics, increasing healthcare utilization and the ongoing shift toward value-based care arrangements. The Optum division has become a significant growth driver, providing technology-enabled services that help healthcare providers improve efficiency and patient care quality. UnitedHealth's current valuation appears compelling given its dominant market position and multiple growth drivers across both insurance and services businesses. The recent regulatory-driven volatility, exacerbated by a high-profile fraud lawsuit, has led to a steep selloff, pushing the stock down significantly and compressing its valuation to a forward P/E of just 12. For a company with UnitedHealth's scale, diversified revenue streams and consistent double-digit earnings growth over the past decade, this represents a rare opportunity to buy a high-quality business at a deep discount. The company's integrated model provides competitive advantages that are difficult to replicate. Healthcare spending continues growing faster than GDP, driven by demographic trends and medical innovation, creating a favorable operating environment. The company's investment in technology and data analytics capabilities positions it well for the ongoing transformation toward personalized medicine and value-based care delivery models. Optum's expansion into new markets and services provides significant revenue diversification beyond traditional insurance operations, while the company's strong balance sheet enables continued strategic acquisitions and organic growth investments. The combination of defensive healthcare exposure and growth potential makes UnitedHealth attractive despite near-term legal and regulatory headwinds. Johnson & Johnson stands as one of the world's most diversified healthcare companies, combining leading pharmaceutical research with innovative medical devices and trusted consumer health products. The company's pharmaceutical division develops breakthrough treatments for cancer, immunology, infectious diseases, and neurological conditions, while its medical device business serves the global surgical, orthopedic, and vision care markets. The company has demonstrated remarkable consistency over decades, generating steady cash flows that support continuous research investment and regular dividend increases spanning over 60 years. Recent strategic initiatives include expanding oncology and immunology portfolios through both internal development and strategic acquisitions, while divesting non-core consumer brands to focus on higher-growth healthcare segments with stronger competitive positioning. Johnson & Johnson offers exceptional stability combined with growth potential from its industry-leading pharmaceutical pipeline and medical device innovations. The company's diversified revenue streams provide resilience during economic uncertainty. At the same time, its strong research capabilities and established regulatory relationships enable the successful development of breakthrough treatments that command premium pricing and market share. The pharmaceutical division's focus on high-value therapeutic areas, such as oncology and immunology, aligns with some of healthcare's fastest-growing segments—meanwhile, the medical device business benefits from aging demographics and increasing demand for minimally invasive surgical procedures. Management's disciplined capital allocation, combined with the company's AAA credit rating and commitment to dividend growth, makes Johnson & Johnson particularly attractive for conservative investors seeking reliable income growth, capital preservation and upside potential from medical innovation. Palantir Technologies specializes in big data analytics platforms that enable organizations to integrate, analyze and act upon massive datasets for critical decision-making. The company serves both government and commercial clients through its Gotham platform for defense and intelligence applications and Foundry platform for enterprise customers across industries, including healthcare, energy, manufacturing and financial services. The company's software enables customers to uncover hidden patterns in complex data, optimize operations and make data-driven decisions that were previously impossible due to technological limitations. Recent commercial expansion has accelerated as enterprises recognize the competitive advantages provided by advanced analytics capabilities. At the same time, government contracts continue providing a stable revenue foundation and development funding for cutting-edge capabilities. Palantir operates at the intersection of several powerful trends, including the adoption of artificial intelligence, digital transformation and data-driven decision-making across both government and enterprise markets. The stock's strong 2025 performance reflects growing recognition of the company's unique capabilities and expanding market opportunities as organizations prioritize analytics investments to maintain competitive advantages. The company's government relationships provide both revenue stability and access to cutting-edge use cases that drive product development, while commercial market expansion offers significant scalability potential. Palantir's software platforms create high switching costs once implemented, leading to strong customer retention and expanding usage over time. The increasing importance of data analytics across all industries, combined with Palantir's proven ability to handle complex, mission-critical applications, positions the company for sustained growth as digital transformation accelerates across both public and private sectors. Bottom Line These five stocks represent diverse opportunities across technology, healthcare, and industrial sectors, each positioned to benefit from powerful long-term trends. From NVIDIA's AI dominance to Johnson & Johnson's healthcare stability, UnitedHealth's integrated model and ultra cheap valuation due to regulatory risks, Honeywell's industrial innovation, and Palantir's data analytics leadership, investors gain exposure to multiple growth drivers while balancing risk across different market segments and business models.
Yahoo
5 days ago
- Business
- Yahoo
1 Industrials Stock with Solid Fundamentals and 2 to Be Wary Of
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 to be baking in a prolonged downturn as the industry has shed 11.8% over the past six months. This drop was worse than the S&P 500's 2.2% fall. 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 boasting a durable advantage and two we're steering clear of. Market Cap: $8.78 billion Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services. Why Do We Steer Clear of HII? Backlog growth averaged a weak 1.8% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.2 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up At $223.51 per share, Huntington Ingalls trades at 15.8x forward P/E. If you're considering HII for your portfolio, see our FREE research report to learn more. Market Cap: $40.64 billion Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles. Why Should You Sell F? Flat vehicles sold over the past two years imply it may need to invest in improvements to get back on track Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 13.4 percentage points 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings Ford is trading at $10.22 per share, or 7.5x forward P/E. To fully understand why you should be careful with F, check out our full research report (it's free). Market Cap: $698.9 million Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors. Why Do We Like FIP? Annual revenue growth of 33.3% over the past three years was outstanding, reflecting market share gains this cycle Market share is on track to rise over the next 12 months as its 78.2% projected revenue growth implies demand will accelerate from its two-year trend FTAI Infrastructure's stock price of $6.08 implies a valuation ratio of 2.6x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
1 Industrials Stock to Target This Week and 2 to Avoid
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.8% over the past six months. This drop was worse than the S&P 500's 2.2% loss. Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. On that note, here is one resilient industrials stock at the top of our wish list and two we're steering clear of. Market Cap: $162 million Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States. Why Should You Sell ALTG? 5.8% annual revenue growth over the last two years was slower than its industrials peers Negative free cash flow raises questions about the return timeline for its investments Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Alta's stock price of $4.88 implies a valuation ratio of 0.9x forward EV-to-EBITDA. To fully understand why you should be careful with ALTG, check out our full research report (it's free). Market Cap: $894 million Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries. Why Should You Dump PRLB? Sales were flat over the last two years, indicating it's failed to expand this cycle Efficiency has decreased over the last five years as its operating margin fell by 7.3 percentage points Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term At $37.61 per share, Proto Labs trades at 25.5x forward P/E. Read our free research report to see why you should think twice about including PRLB in your portfolio, it's free. Market Cap: $82.04 billion Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Do We Love TDG? Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years Incremental sales over the last two years have been highly profitable as its earnings per share increased by 30.8% annually, topping its revenue gains Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute TransDigm is trading at $1,461 per share, or 36.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our 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. 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
5 days ago
- Business
- Yahoo
1 Industrials Stock to Target This Week and 2 to Steer Clear Of
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and investors seem to be forecasting a downturn - over the past six months, the industry has pulled back by 11.8%. This drawdown was worse than the S&P 500's 2.2% decline. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one resilient industrials stock at the top of our wish list and two we're swiping left on. Market Cap: $23.31 billion Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries. Why Are We Wary of TDY? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned At $497.49 per share, Teledyne trades at 22.4x forward P/E. Dive into our free research report to see why there are better opportunities than TDY. Market Cap: $27.84 billion One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities. Why Do We Avoid LEN? Demand cratered as it couldn't win new orders over the past two years, leading to an average 22.1% decline in its backlog Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 10.8% annually Free cash flow margin dropped by 13.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up Lennar is trading at $105.72 per share, or 8.2x forward P/E. Check out our free in-depth research report to learn more about why LEN doesn't pass our bar. Market Cap: $5.70 billion Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies. Why Do We Love FSS? Demand is greater than supply as the company's 10.8% average backlog growth over the past two years shows it's securing new contracts and accumulating more orders than it can fulfill Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage Earnings per share grew by 28.7% annually over the last two years, massively outpacing its peers Federal Signal's stock price of $93.88 implies a valuation ratio of 24.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Bloomberg
6 days ago
- Business
- Bloomberg
Greenlight Capital's Einhorn Is Net Long Europe, Neutral on US
Greenlight Capital Inc. founder David Einhorn is long Europe, particularly the region's industrials, after seeing tailwinds from government stimulus efforts, falling global energy prices and the prospect of a peace deal in Ukraine. Einhorn is also wary of America's ability to accept pain when it comes to a trade war with China, because 'no one seems to be interested in empty shelves,' he said in an interview at the Sohn conference in Montreal on Wednesday. But China's technological sophistication, its cheaper labor and the fact that it's long been preparing for economic conflict with the US means America should 'be prepared to be punched in the face.'
