Are These The Best Industrial Stocks For Your May 2022 Portfolio?
While the broader stock market starts the week in the red, industrial stocks could be worth considering. For the most part, this could be the case even as numerous headwinds weigh in on global markets. Namely, companies in the industrial space have and continue to play crucial roles in the recovery from the pandemic. From construction to infrastructure maintenance, this is apparent. Furthermore, there is also the ongoing shift toward more environmentally sustainable practices driving the need for new infrastructure as well.
For instance, we could look at Nucor (NYSE: NUE), one of the largest steel producers in North America. In its latest quarterly update, the company saw green across the board. To begin with, Nucor raked in total revenue of $10.49 billion, representing a massive 49% increase year-over-year. Moreover, it is looking at a net income of $2.1 billion for the quarter, a sizable 122% year-over-year jump. In essence, Nucor cites record growth in its Safety business and strong end-market demand for the current performance. As such, industrial players like Nucor that provide key construction materials could be viable plays.
At the same time, Boeing (NYSE: BA) is also ramping up operations as the travel rebound persists. As of last week, the company is looking to resume deliveries of its 787 Dreamliner aircraft by the second half of 2022. For one thing, this would serve to assist Boeing with its plans to bolster 787 production throughout 2022. All in all, the companies behind the top industrial stocks around remain hard at work. With the recent dips in the stock market today, could one of these firms be a buy now?
Industrial Stocks To Buy [Or Sell] Today
- General Motors Company (NYSE: GM)
- General Electric Company (NYSE: GE)
- Honeywell International Inc. (NASDAQ: HON)
General Motors Company
For starters, we will be taking a look at General Motors, or GM, for short. As most would know, GM is one of the largest automotive manufacturers in the world. Like most of its industry peers, GM is steadily focusing on electrifying its current portfolio. Notably, it aims to do so via its Ultium battery platform, a core component of the GM EV strategy now. For investors that are eager to jump on the long-term EV trends in the market, GM stock could be an option.
Accordingly, GM does not seem to be slowing down in the least bit on this front. As of earlier today, the company revealed a new feature for its Ultium battery system. In detail, this would be its Ultium Energy Recovery (UER) feature standard. Essentially, the UER is a heat pump that “recovers energy from the battery to power heating and propulsion while also helping to conserve range.” By the company’s estimates, this provides its EVs with up to 10% more range in ideal cases. This, in turn, would enable more power and range in GM’s offerings compared to other EVs with similar battery setups.
Additionally, the company also revealed that it will be producing an electrified version of its Chevrolet Corvette. It aims to do so by the end of 2023. On top of that, GM President Mark Reuss also adds that GM is looking to make an all-electric version after. Overall, it seems that GM is firing on all cylinders at the moment. After considering all this, would GM stock be worth jumping on for you?
General Electric Company
Following that, we have General Electric, a multinational conglomerate whose business areas span renewable energy, health care, aviation, and power. GE Renewable Energy, for instance, is a $16 billion business that combines one of the broadest portfolios in the industry. It provides end-to-end solutions for its customers for reliable and affordable renewables.
Last week, the company announced that it has inaugurated a new research and development facility that will research how to 3D print the concrete base of towers used in wind turbines. In essence, the research facility will enable GE to 3D print parts of the wind turbine towers on-site at wind farms. This will lower transportation costs and creates additional employment opportunities at the wind farms where the technology will be used. U.S. Department of Energy Deputy Assistant Secretary for Renewable Power Alejandro Moreno says that he is proud to partner with GE on this innovative 3D printing technology and it will help reach the Biden administration’s ambitious goal of carbon-free electricity by 2035.
GE Renewable Energy Chief Technology Officer Danielle Merfeld, who spoke at the event, said, “Innovation will continue to be a key driver in accelerating the energy transition. It is particularly important to continuously improve the ways we design, manufacture, transport, and construct the large components of modern wind farms. We appreciate the support of the US Department of Energy for the research we are doing here and are confident it will help make the wind farms of tomorrow even more efficient, economical, and environmentally responsible.” With that in mind, is GE stock a buy?
Honeywell International Inc.
Honeywell is an industrial company that primarily operates in the aerospace, performance materials, building technologies, and safety segments. The company’s Aerospace products and services are found in virtually every commercial, defense, and space aircraft. In essence, it also builds aircraft engines, cockpits, and cabin electronics. Also, Honeywell Aerospace’s hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights, and also safer airplanes for consumers.
Today, the company announced that a variety of its engine and power systems technology has been selected by Lockheed Martin (NYSE: LMT) Sikorsky-Boeing for its Defiant X helicopter, currently, a contender to win the U.S. Army’s Future Long-Range Assault Aircraft (FLRAA) competition. Team DEFIANT selected Honeywell’s GTCP 36-150 auxiliary power units (APUs) series, as well as Honeywell’s main engine generator and APU generator. Honeywell has already delivered more than 10,000 of these APUs since production started in 1979 and the company believes that this new, low-risk version will help Team DEFIANT win the FLRAA competition.
On April 20, 2022, the company also announced that it is joining City Possible, an ecosystem that is pioneered by Mastercard (NYSE: MA). The ecosystem will bring cities, companies, and communities together to identify common challenges and develop solutions that advance inclusive and sustainable urban development. Following this piece of information, is HON stock worth investing in today?