Are These The Best Value Stocks To Buy In 2022?
While tech stocks may be stealing headlines in the stock market this earnings week, industrial firms are also performing. Because of this, investors may want to consider watching some of the best value stocks in the industrial industry for 2022. If anything, this part of the cyclical sector would stand to benefit from the overall economic recovery.
After all, investors received several key pieces of economic data this week. As of earlier today, the personal consumption expenditure (PCE) figures, a key inflation measure, are in at an increase of 4.9%. This would be its fastest gain since September 1983. Additionally, the latest initial jobless claims figures are in at 260,000, below estimates of 265,000. Moreover, quarterly GDP estimates came in higher by a 6.9% annualized pace yesterday, smashing expectations of a 5.5% increase.
Now, with a seemingly recovering job market and a red hot economy, industrials would, in theory, have busy times ahead. Even now, companies such as Caterpillar (NYSE: CAT) and 3M (NYSE: MMM) are already kicking into high gear. For starters, Caterpillar posted solid figures in its latest quarterly earnings report earlier today. The heavy machinery manufacturer posted earnings of $2.69 on revenue of $13.8 billion, beating Wall Street’s forecasts. Notably, Caterpillar cites an ongoing surge in demand for construction equipment alongside rising commodity prices. Secondly, 3M topped earnings per share expectations by a whopping 30 cents earlier this week in its latest financial update. With all this in mind, here are four more industrial stocks to consider in the stock market today.
Best Value Stocks To Buy [Or Sell] Ahead Of February 2022
- Nucor Corporation (NYSE: NUE)
- United Rentals Inc. (NYSE:URI)
- Deere & Company (NYSE: DE)
- Raytheon Technologies Corporation (NYSE:RTX)
Nucor is a manufacturer of steel and steel products. It has facilities in the U.S., Canada, and Mexico. In essence, it produces carbon and alloy steel in bars, beams, sheets, and plates. It also fabricates concrete reinforced steel, precision castings, and steel fasteners. Through its David J. Joseph Company, the company also brokers ferrous and nonferrous metals, pig iron, and hot briquetted iron. NUE stock currently trades at $98.49 as of 12:52 p.m. ET and is up by over 90% in the past year alone.
On Thursday, the company reported its fourth-quarter earnings. Diving in, the company announced a consolidated net earnings of $2.25 billion or $7.97 per diluted share. Nucor says that 2021 has been an extraordinary year, given the incredible financial and operational results in 2021. For its first quarter of 2022 outlook, the company says that the end-use market demand remains strong for steel and steel products. With that being said, Nucor is confident that 2022 will be another year of strong profitability. All things considered, is NUE stock worth investing in right now?
United Rentals Inc.
Following that, we have United Rentals, one of the world’s largest equipment rental companies. It has an integrated network of 1,288 rental locations in North America and 11 in Europe. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 20,400 employees serve construction and industrial customers, utilities, municipalities, and homeowners among others. URI stock currently trades at $313.24 as of 12:54 p.m. ET.
Earlier this week, the company also reported its fourth-quarter financials and provided a 2022 outlook. Firstly, total revenue for the quarter was $2.776 billion, including rental revenue of $2.312 billion. Secondly, its fleet productivity increased by 10.3% year-over-year. Impressively, net income for the quarter also increased by 62% year-over-year to $481 million. Also worth noting is that its used equipment sales increased by 17.8% year-over-year, at $324 million. The company’s Board of Directors also authorized a new $1 billion share repurchase program which will commence somewhere in the first quarter of 2022. With the impressive financials, will you be on the lookout for URI stock?
Deere & Company
Deere & Company or John Deere is a world leader in providing advanced products and services for the agricultural and construction businesses. With over 180 years of experience and terabytes of precision data, the company knows its business better than anyone else. Impressively, the company offers a portfolio of more than 25 brands that provide a full line of innovative solutions for its customers in a variety of production systems. DE stock currently trades at $371.20 as of 12:55 p.m. ET.
Last week, the company announced that it has added seven companies to its 2022 Startup Collaborator program. The company launched the program in 2019 to enhance and deepen its interaction with startup companies whose technology could add value for customers. Notably, these companies include Burro, a company that provides people-scale robotic platforms to help farm laborers work more productively, and also Four Growers, a company that provides robotic harvesting and analytics for high-value crops. I could see the company benefitting from next-generation technologies with this program. With that being said, is DE stock worth adding to your portfolio?
Raytheon Technologies Corporation
Last but not least, we will be taking a look at Raytheon Technologies. In brief, Raytheon is a multinational aerospace and defense conglomerate. By Raytheon’s estimates, it is among the largest aerospace, intelligence service providers, and defense manufacturers worldwide. This would be in terms of revenue and market cap. In theory, as the return to normalcy persists, so too would demand for Raytheon’s core offerings. The likes of which include its work in the areas of artificial intelligence, advanced propulsions, and thermal management among others. As it stands, RTX stock currently trades at $88.86 as of 12:55 p.m. ET.
Even with the company’s shares mostly trading sideways this year, Raytheon continues to press forward. Evidently, the company posted solid gains in its fiscal 2021 earnings report earlier this week. In it, Raytheon recorded earnings per share of $2.56 on revenue of $64.4 billion for the year.
For comparison, this marks notable year-over-year gains of 198% and 13% respectively. Commenting on the company’s outlook for the current fiscal year is CEO Greg Hayes. Hayes says, “The long-term outlook for our commercial aerospace and defense markets remains strong. Our focused A&D portfolio and intense focus on program execution position us well to deliver sales, earnings, and free cash flow growth, as well as margin expansion across all businesses in 2022.” As such, would you consider RTX stock a buy now?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!