10 Industrial Stocks Poised for a Rebound
Standard & Poor's says its outlook for the industrial machinery industry remains "positive, based on various industrial activity metrics that indicate manufacturing and machinery usage continue to expand, and our belief that stronger growth in emerging economies will likely drive the rebound in global markets."
But on a cautious note, S&P Capital IQ analyst Kevin Kirkeby said in a recent report that the industrial-machinery sector, which has been resurgent since 2010 helped by worldwide stimulus spending programs and other measures aimed at freeing up the capital markets, slowed in the first quarter due to "increased risk aversion" by companies considering new orders of capital equipment. Their concerns were over the resolution of the sovereign debt crisis in Europe and signs of slowing economic growth in China.
As of April 13, S&P's industrial machinery stock index was up 12.4%, versus the S&P 500's 9% gain.
Here are 10 stocks of companies that are suppliers to the industrial-machinery sector ranked in inverse order of the number of analyst "buy" signals:
Company profile: Sandvik, with a market value of $17 billion, is an international producer of highly engineered tools and products for the global industrial market. It has five business areas: mining, machining tools, materials technology, construction, and venture.
Dividend Yield: 2.34%
Investor takeaway: Its shares are up 12.3% this year and have a three-year, average annual return of 27%. The Sweden-based company doesn't get U.S. analyst coverage.
Company profile: Dover, with a market value of $11 billion, is an industrial conglomerate consisting of nearly 40 separate businesses. It has four segments: industrial products, engineered systems, fluid management, and electronic technologies.
Dividend Yield: 2.06%