Honeywell. Lockheed Martin. Ametek. These are 3 top industrial stocks to watch and buy.
There are many reasons you should look to invest in industrial stocks. First, they are overlooked. Despite the pressure by the ongoing U.S./China trade war, this sector of the S&P 500 has averaged over 12% returns to become the third-best-performing sector.
Add to those reasons the fact that the industry is projected to attain a 5.2% growth in profits for 2019 full fiscal year. This growth expectation of the sector will most likely outpace that of the broader market.
Nevertheless, to limit your risk, here are the top 3 of them that we recommend you watch.
Honeywell (NYSE: HON)
A well-diversified company with interests cutting across tech and manufacturing, Honeywell (NYSE: HON) is definitely a stock to consider. The company has operations spanning aerospace, chemicals, fire systems, and similitudes.
Year till date, its stock has risen by over 26%, far outperforming the S&P 500’s 9.5% return within the same period. And what is more, analysts believe that the company’s growth has just begun.
Little wonder they are so bullish on it. For example, John Walsh of Credit Suisse, ramped up his price target for the stock in May, basing his decision on the strong organic sales growth strategy the company has been exploring.
As at market close on August 20, Honeywell has a market capitalisation of approximately $119 billion, with share price hovering at $163.47. Its 52-week range is between $123.48 to $178.47.
Lockheed Martin (NYSE: LMT)
Lockheed Martin is a global aerospace and defense corporation. The company has been enjoying a significant level of investors’ support, culminating in it being given the “Buy” rating by most analysts on the Street.
Cai Rumohr of Cowen & Co, has rated it as “the top defense big-cap stock” largely because of its impressive first-quarter financial results. On all fronts, from sales, operating margin, cash flow, and book-bill, the company had sterling results to show.
With its many foreign potentials and increasing backlog, Lockheed Martin should have another phenomenal financial year. For the first quarter, it reported earnings per share (EPS) of $5.99, which was better than most expectations.
The company, at the close of the trading session on August 20, has a market capitalisation of roughly $107 billion, with its shares closing at $381.75.
Ametek Inc., (NYSE: AME)
Ametek is a house name when it comes to electronic and electromechanical instruments. The company has achieved a consistent $4 billion in annual sales, which even went on to inch higher in 2018.
Being one of the highest-rated industrial stocks on Wall Street, Ametek has been given “Buy” ratings by most analysts on the Street. The company’s acquisition, management acumen, and overall successful growth model, with a continued focus on leadership in niche markets, has continued to endear it to investors.
With strong free cash flow and backlog and solid order trends, the underlying fundamentals of the company are undoubtedly commendable.
Ametek (NYSE: AME) closed the last trading session at $86.21. The company presently has a market capitalisation of $19.8 billion.