Do You Have These Top Industrial Stocks On Your August 2021 Watchlist?
While the broader stock market cools off from its recent rally, investors may be looking for the most active stocks today. Understandably, this could be the case as some of the top industrial stocks trade below their year-to-date highs now. As news of the coronavirus Delta variant continues to roll out, investors appear to be making more defensive plays. This would see industrials, which are often cyclical in nature, lose some appeal. Given the current pandemic conditions, could this be the best move for investors?
If anything, Goldman Sachs (NYSE: GS) U.S. equity strategist David Kostin thinks otherwise. Earlier today, Kostin argued that the Delta variant should only “pose a minimal risk” to the U.S. equity market. He elaborated by saying, “From a flows perspective, robust household cash balances and corporate buyback authorizations should continue to support inflows for equities, increasing the likelihood that market participants perceive a pullback as a buying opportunity.” Besides, as the economy eventually makes a recovery, in the long run, industrial companies would have their work cut out for them. Because of this, investors looking towards long-term gains would be looking at industrial stocks now among others.
Take 3M (NYSE: MMM) and Taiwan Semiconductor Manufacturing (NYSE: TSM) for instance. A wide array of industries rely on both companies’ products across the globe. Particularly, TSM’s semiconductor chips would especially be in demand as new upgrade cycles in the tech world arrive. In fact, tech giants such as Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) are already working with TSM’s latest offerings. By and large, some would argue that top industrial stocks could potentially still have room to run moving forward. Should you agree with this, here are three making headlines in the stock market today.
Top Industrials Stocks To Watch Today
- Boeing Company (NYSE: BA)
- General Electric Company (NYSE: GE)
- Raytheon Technologies Corporation (NYSE: RTX)
The Boeing Company
Boeing is a leader in aviation, aerospace, and defense technology. It supports many airlines, U.S., and allied government customers in more than 150 countries. Its technology, products, and services include commercial and military aircraft, launch systems, and defense systems. It also provides advanced information and communications systems to customers. BA stock currently trades at $224.04 as of 1:26 p.m. ET and is up by over 30% in the past year.
Based on a report by The Wall Street Journal, Boeing will be launching its Starliner space capsule this Friday without a crew on board. NASA now needs another way to transport astronauts and cargo to the International Space Station. The Starliner program could very well serve NASA if all goes well this Friday. Boeing will be reporting its second-quarter earnings this Wednesday as well. Ahead of its earnings report, the company announced its second-quarter deliveries on July 13, 2021. For its commercial airplanes programs, the company has delivered 79 airplanes in the second quarter.
In late June, the company reported that United Airlines (NASDAQ: UAL) will expand its 737 order book by purchasing an additional 200 737 MAX jets, including 150 for the largest member of the family, the 737-10. The new purchase positions United’s fleet for growth and accelerating demand for air travel. “The Boeing team is excited to be building hundreds of these new jets for United and delivering on a landmark agreement that solidifies our future together for the next decades,” said Stan Deal, president, and CEO of Boeing Commercial Airplanes. Given the excitement surrounding Boeing, will you watch BA stock?
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General Electric Company
General Electric (GE) is a multinational conglomerate that is a leader in the power, renewable energy, and health care industries. GE Renewable Energy for instance is a $16 billion business that combines one of the broadest portfolios in the renewable energy industry. This segment of GE provides end-to-end solutions for customers demanding reliable and affordable green power. Impressively, the company has installed more than 400 gigawatts of clean renewable energy. GE stock currently trades at $12.84 as of 1:27 p.m. ET and is up by over 85% in the past year.
Last week, the company announced that it has recently been awarded multiple orders to supply 765 kV transformers and reactors in India. The contracts were awarded by the Power Grid Corporation of India Limited, India’s largest state-owned transmission company. In detail, GE will provide 13 units of 765 kV transformers and 32 numbers of 765 kV reactors. The project’s transformers and reactors will be supplied by GE’s Grid Solutions’ state-of-the-art power transformer manufacturing facility in Vadodara, India.
It also recently announced that it has entered into a Joint Development Agreement with Whiffle, a Netherlands-based weather forecasting technology firm. GE will utilize Whiffle’s ultra-fine atmospheric Large Eddy Simulation modeling for its wind energy applications. The technology will be used to optimize wind turbine siting and enable improved energy production. With that in mind, will you consider adding GE stock to your watchlist today?
Raytheon Technologies Corporation
Following that, we have the Raytheon Technologies Corporation. In brief, the Massachusetts-based company primarily operates in the aerospace and defense industry. To point out, it is one of the largest names in the aerospace, intelligent services, and defense manufacturing global market now in terms of revenue and market capitalization. Given the applications for its products, Raytheon mostly caters to military and government customers. At the same time, the company also caters to the commercial airline industry via its aircraft software solutions. For a sense of scale, Raytheon estimates that over 66% of the world’s airspace is managed by its systems.
As it stands, RTX stock trades at $85.68 as of 1:27 p.m. ET. With year-to-date gains of over 23%, would it still have room to grow moving forward? To get a clearer understanding of this, we could look at Raytheon’s recent financials. Back in April, the company saw green across the board in its first-quarter fiscal. Overall, Raytheon raked in total revenue of $15.25 billion for the quarter, a 34% year-over-year increase. Moreover, the company also saw massive year-over-year surges of 1,007% in net income and 600% in earnings per share. According to CEO Greg Hayes, Raytheon remains confident in its outlook for the rest of 2021.
That’s not all. On July 14, 2021, Pratt & Whitney, a division of Raytheon announced its GTF engines have saved more than half a billion gallons of fuel and avoided more than five million metric tonnes of carbon emissions. The engines power more than 1,000 aircraft across three aircraft families, Airbus A320neo, Airbus A220, and Embraer E-Jets E2. All things considered, is RTX stock worth watching?