Are These The Top Industrial Stocks To Invest In Today?
Industrial stocks could be worth looking into in the stock market today. By and large, this could be the case as the economy is once again front and center this week. In other words, investors will likely be looking towards a series of prints and updates regarding and surrounding the U.S. economy. For starters, the Federal Reserve is set to release its latest monetary policy decision on Wednesday. Worth mentioning, this will be the first pandemic-era interest rate hike. On top of that, investors will also have to consider the latest figures on producer prices and February’s retail sales.
More importantly, how would industrial stocks fit into all this, might you ask? Well, simply put, industrials tend to follow economic cycles closely. This would be thanks to the nature companies in the industrial sector now. Essentially, industrials are primarily companies that produce or distribute machinery, supplies, or equipment. All of which are often used in the manufacturing, construction, or defense industries. For those looking to get a read on how industrial firms are doing, keeping up with the latest economic figures would, ideally, help. In particular, producer prices and retail sales would provide some insight into the general supply and demand in the economy now. The likes of which would influence the need for the industry’s core offerings.
Even now, industrial companies like Lockheed Martin (NYSE: LMT) and Sunrun (NASDAQ: RUN) remain hard at work. On one hand, Lockheed is gaining attention after reportedly receiving an order for up to 35 of its F-35 fighter jets from Germany earlier today. On the other hand, renewable energy firms like Sunrun continue to gain popularity as convention energy supplies dwindle. With all that in mind, here are three top industrial stocks to know in the stock market now.
Industrial Stocks To Buy [Or Sell] This Week
First, we have TransDigm Group, an industrial manufacturing company. In fact, the company is a leading global designer and producer of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. It has a portfolio of product offerings that include mechanical/electro-mechanical actuators, ignition systems, and engine technologies. Today, the company announced the acquisition of Dart Aerospace.
Dart Aerospace is a leading provider of highly engineered, unique helicopter missions equipment solutions that predominantly service civilian aircraft. TransDigm expects Dart to generate approximately $100 million in pro forma revenues for the year 2022. The company also says that this acquisition will fit well with its proprietary and aftermarket-focused value generation strategy. The company has established positions on a diverse range of new and existing rotary-wing platforms as well.
Last month, TransDigm also reported its fiscal 2022 first-quarter financials. Firstly, net sales for the quarter were $1.19 billion, up by 8% year-over-year. Secondly, it reported an earnings per share from continuing operations of $1.96 for the quarter. Furthermore, the company says that the continued improvement in global air traffic is evident despite the emergence of the Omicron variant. TransDigm also says that it continues to see sequential improvements in its aftermarket revenues and even more significant improvements in its commercial aftermarket bookings. With that in mind, would you buy TDG stock?
Another name in the industrial space to consider now would be Rio Tinto. In brief, it is an Anglo-Australian multinational mining company, Not to mention, Rio Tinto is also among the largest metals and mining firms worldwide, rivaling the likes of BHP (NYSE: BHP). For the most part, the company specializes in producing iron ore, diamonds, gold, uranium, and copper. Speaking of copper, RIO stock could be worth noting after Rio Tinto’s latest push to grow its operations on that front.
Notably, the company is now offering a whopping $2.7 billion in an offer to buy out Turquoise Hill Resources. Overall, this seems to be a push by Rio Tinto, targeting control over a massive copper mine in Mongolia. According to the company, this play for greater ownership over the Oyu Tolgoi project serves to bolster its copper portfolio significantly. Moreover, Rio Tinto also expects to reinforce its long-term commitments to Mongolia, should this deal go through.
Explaining this in further detail is Rio Tinto CEO Jakob Stausholm. He notes, “Rio Tinto strongly believes in the long-term success of Oyu Tolgoi and Mongolia, and delivering for all stakeholders over the long-term. That is why we want to increase our interest in Oyu Tolgoi, simplify the ownership structure, and further strengthen Rio Tinto’s copper portfolio. We believe the terms of the proposal are compelling for Turquoise Hill shareholders.” With Rio Tinto seemingly kicking into high gear now, would RIO stock be a top industrial stock in your books?
[Read More] Top Stock Market News For Today March 14, 2022
Last but not least, we have Boeing, a multinational corporation that designs, manufactures, and sells airplanes, satellites, telecommunications equipment, and missiles worldwide. The company has operations in over 150 countries and is a leader in aviation, aerospace, and defense technologies. It deals with airlines and U.S. government customers as well. Last week, the company was reported to have an interesting piece of news.
Diving in, a report by Reuters claims that Boeing has preliminary plans to boost production of its cash cow 737-family narrowbody to around 47 per month by the end of next year. This is almost double its current production rate. After cutting production due to the pandemic, the company now sees more demand for their medium-haul passenger jets. Boeing has also been reported to be adding eye-catching deals to their order books in recent weeks. Furthermore, the company has been off to a busy month so far.
DHL Express recently placed an order for 6 additional 777 Freighters. This would be a total of 28 Freighters since it first placed a direct order in 2018. The world-leading express service provider continues to rely on Boeing for the largest and most capable twin-engine freighter in the market. Also, the company recently signed a Memorandum of Understanding with Ethiopian Airlines with the intent to purchase 5 777-8 Freighters. After considering all of this, would you say that BA stock is worth investing in today?