4 Top Industrial Stock To Keep An Eye On Now
Industrial stocks continue to gain attention in the stock market today as inflation begins to moderate. This week saw the release of the Purchasing Managers’ Index (PMI) for December. In particular, the price component of the index, a proxy of inflation, came in at 68.2, down from 82.4 in November. These are all welcoming factors for investors looking for the best industrial stocks to buy. Besides, industrial stocks are considered to be part of the cyclical stock category. This means as the economy improves, so would the demand for the products and services of these industrial companies. The industrial sector comprises companies that manufacture machinery, construction supplies, and raw materials.
With that being said, the industrial sector continues to bring exciting developments. This week, Advanced Micro Devices (NASDAQ: AMD) had its keynote at CES, which is arguably among the most influential annual tech events. The company, known as AMD for short, made over half a dozen announcements and product launches for 2022. Namely, it will be launching a variety of laptop and desktop processors. However, the biggest announcement was the launch of the Ryzen 6000 mobile CPUs. In other news, 3M (NYSE: MMM) and Ansys (NASDAQ: ANSS) have launched a material modeling training program that assists engineers. Specifically, this program helps refine the product development stage, accelerate the design stage, and eliminate material waste. With all these developments in mind, are these industrial stocks top picks in the stock market now?
Best Industrial Stocks To Watch Today
- Wabtec Corporation (NYSE: WAB)
- Pioneer Power Solutions, Inc. (NASDAQ: PPSI)
- Agrify Corporation (NASDAQ: AGFY)
- Triumph Group, Inc. (NYSE: TGI)
Starting off our list, we have the Wabtec. The company is focused on creating transportation solutions that, quite literally, move the world. Wabtec provides equipment, systems, digital solutions, and related services for the freight and transit rail industries. Additionally, it provides solutions for the marine and industrial markets. The company’s long-term vision is to provide a low-to-zero emission rail system worldwide. Earlier this week, Wabtec announced that it recently acquired the railway friction business from MASU. The latter is a leading Indian manufacturer of friction products such as brake pads. Its core end markets include the automotive and rail industries. By acquiring MASU, Wabtec would be able to accelerate its growth and expand its brake product portfolio. Moreover, this acquisition could allow Wabtec to push its long-term growth strategy in India.
Notably, this is because Wabtec has a strong brakes portfolio locally, supplying brake systems on Indian Railways’ locomotives and metros. The acquisition could also improve Wabtec’s position as a ‘Made in India’ manufacturer, improving its reputation in the eyes of local customers. Ultimately, this would build upon their leadership position in the railway friction market. With the news of this $34 million acquisition, do you think WAB stock is worth a spot on your watchlist?
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Pioneer Power Solutions
Pioneer Power Solutions focuses on the design and manufacturer of electrical equipment in North America. The company deals with customers in the industrial, commercial, OEM, and critical power markets. To be specific, their product portfolio includes EV charging products and infrastructure, switchgear, and engine-generator controls. On top of that, they also sell a wide range of specialty magnetic products. These products serve key roles in the controlling and conditioning of electrical current for critical processes.
In December, Pioneer Power received a significant order worth $12 million for its E-Bloc product. The company’s E-Bloc integrated power center is a packaged electrical infrastructure solution that will integrate and control various energy sources. The energy sources include an H2 Fuel Cell, PV solar, and energy storage.
Essentially, this creates an island microgrid that provides power without the need to be connected to a public power grid. More importantly, this order could ideally double the sales of its Transmission and Distribution Solution segment in 2022. With this in mind, would you consider PPSI stock a top stock to watch in your books?
Next up, we will be taking a look at the Agrify. The company is a vertically integrated provider of premium cultivation and extraction solutions for the cannabis and hemp industry. Agrify’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable their customers to produce products of the highest quality. Besides that, the company develops indoor grow solutions, LED grow lights, environmental threat migration, and related cannabis and hemp products.
Recently, Agrify announced the largest Agrify Total Turn-Key Solution (Agrify TTK Solution) partnership to date. The 10-year partnership is with Gold Leaf Florida LLC, a leading licensed medical marijuana treatment center based in Florida. In detail, Agrify is to install 1,510 of its VFUs at Gold Leaf’s 200,000-square-foot facility. Furthermore, Gold Leaf plans to build 4 additional similar-sized facilities in Florida. This could mean the installation of several thousand more VFUs.
Besides that, the agreement also includes architectural and engineering services, recurring revenue from Agrify Insights cultivation software usage, and operations consulting. This agreement could generate more than $140 million in revenue for Agrify over the first three years, and over $400 million across the full 10-year term. With Agrify seemingly kicking into high gear, do you think AGFY stock is worth investing now?
Last but not least, we have the Triumph Group. It is an aerospace company that focuses on the designing, manufacturing, and overhaul of aircraft. This includes aircraft structures, components, accessories, and systems among other related projects. For the most part, it serves clients across the global aviation industry, including OEMs, and the full spectrum of military and commercial aircraft operators.
Last month, the company received a production contract extension with Boeing (NYSE: BA). Accordingly, the contract entails the continuation of the manufacturing and delivery of hydraulic and actuation equipment. The equipment is used for the Boeing 737 MAX, 777, 777X, and 767 airplanes. Also, the contract includes key equipment and components such as the landing gear actuation and nose wheel steering.
Not to mention, Triumph is also partnering up with Air France Industries KLM Engineering & Maintenance to form a joint venture under the name xCelle Americas. The joint venture will perform maintenance and overhaul services for new-gen nacelles, an external component on aircraft. Specifically, these include aircraft such as Boeing 787, Boeing 737 MAX, Airbus A320neo, and Airbus A350. With so much going on for Triumph, will you be watching TGI stock?
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