3 industrial stocks to watch in July 2021
Industrials are back in the spotlight this week thanks to the recent White House infrastructure bill. For the most part, this would add to the overall tailwinds seen by the industrial sector in the stock market. now. This would be the case for companies in the industrial space playing a crucial role in the current economic recovery. For the uninitiated, industrials are made up of companies that manufacture and distribute capital goods and provide related services. Whose likes are typically used in construction and manufacturing, processes very relevant to Biden’s infrastructure plan.
Now, when it comes to the industrial sector, investors seem to be spoiled for choice. To begin with, we could look at the mining and metallurgical industry. Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) supply the valuable raw materials needed for most manufacturing operations today. In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an outperformance rating, calling it top pick. At the same time, industrial companies such as Boeing (NYSE: BA) in the aerospace field are also stepping up a gear. Earlier this week, the company received a massive order for 270 planes from United Airlines (NASDAQ: UAL).
Overall, major industry stocks are now looking at major tailwinds across the board. On the one hand, there is the current trajectory of the economy, which the sector often follows closely. On the other hand, $ 579 billion in investments would also accelerate the growth of the industrial market. Overall, I could see industrials among the most active stocks in the stock market today. With that said, here are three names you should know now.
Best industrial stocks to buy [Or Sell] TodayGeneral Electricity Company
General Electric (GE) is a multinational industrial corporation headquartered in Boston. The company operates in many industries which are vital to economies around the world. In particular, the company has invested heavily in its renewable energy and healthcare segments. GE Renewable Energy is a $ 15.7 billion company that combines one of the largest portfolios in the renewable energy industry to provide end-to-end solutions to its customers. GE stock is currently trading at $ 13.44 at 1:39 p.m. ET and has risen more than 25% year-to-date.
Today, the company announced that GE Renewable Energy has connected the last unit of the Wudongde Hydroelectric Power Station (WDD) to the grid for power generation. Under the contract signed in 2015, GE was responsible for the design, manufacture and commissioning of the 6 x 850 MW Francis turbine generator sets and associated equipment for the WDD hydroelectric project. A single Francis turbine can generate enough electricity for about 1.8 million typical Chinese households.
Not resting on its laurels, the company also announced today that GE Healthcare has entered into a new partnership with the Ministry of Health of the Democratic Republic of the Congo to provide mobile x-ray machines and ECG machines to help to efforts to fight the pandemic. Last week, the company announced that GE Healthcare and Wayra had selected five healthcare technology start-ups. The start-ups will focus on the application of AI to increase medical imaging, improve oncology care and improve the patient experience. Estimates suggest that more than 400,000 European lives could be saved each year through the application of AI in healthcare. Given the enthusiasm surrounding the company, are GE stocks worth adding to your portfolio?
Source: TD Ameritrade CGU
Caterpillar is an industrial company that designs and sells machinery. Essentially, the company is the world’s leading manufacturer of construction and mining equipment. It also manufactures diesel and natural gas engines, as well as industrial gas turbines. CAT stock is currently trading at $ 216.80 at 1:40 p.m. ET and has risen over 65% in the past year.
On June 9, 2021, the board of directors of the company voted to increase the quarterly cash dividend from 8% to $ 1.11 per common share which will be payable on August 20, 2021.By executing our business strategy for profitable growth, Caterpillar generates higher free cash flow throughout cycles,Said Jim Umpleby, CEO of Caterpillar. “Our strong balance sheet and liquidity position allow us to continue our long history of increasing our dividends and returning shareholder value. ”
At the end of April, the company also posted strong financial results for the first quarter of 2021. Plunging, sales and revenues increased 12% year-on-year to $ 11.9 billion. This increase is due to an increase in sales volume driven by higher demand from end users and also by the impact of changes in dealer inventories. Its first quarter earnings per share were $ 2.27 and it ended the quarter with $ 11.3 billion in company cash. With that in mind, is CAT stock worth buying now?
Source: TD Ameritrade CGU
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Applied Materials Inc.
Then we have Applied Materials Inc (AMAT). In short, the California-based company is a leader in materials engineering solutions. AMAT specializes primarily in providing the equipment, services and software necessary for the semiconductor manufacturing industry. The company achieves this in particular thanks to its expertise in modifying materials on an atomic and industrial scale. Given AMAT’s vital role in activating the semiconductor industry, AMAT action would now be in the spotlight. With the latest global chip shortage, manufacturers are reportedly looking to increase production capacity. In theory, this could lead AMAT to see higher demand for its offerings.
Clearly, the company saw green across the board in its last fiscal quarter released in May. In it, AMAT raked in total revenue of $ 5.58 billion for the quarter, marking a massive 41% year-over-year jump. On top of that, the company also saw strong year-over-year increases of 76% in net income and 74% in earnings per share. CEO Gary Dickerson cited the widespread strength of AMAT’s semiconductor business as a key factor in the company’s performance. According to Dickerson, AMAT is confident in its ability to outperform its markets through existing secular trends.
Operationally, the company also continues to innovate. Earlier this month, AMAT revealed a new way of thinking about wiring advanced logic chips. The highlight of this breakthrough is that AMAT can adapt these chips to nodes as small as 3 nanometers. In terms of application, Senior Vice President Prabu Raja explained: “This unique integrated solution is designed to accelerate our customers’ performance, power and surface cost roadmaps.“With AMAT appearing to be in full swing now, would you see AMAT stock as a top buy now?
Source: TD Ameritrade CGU