CTVA - 3 Red Hot Industrial Stocks to Buy Hand Over Fist in March
Sometimes it pays to go off the beaten path. That's pretty much how investors in agriscience company Corteva (NYSE: CTVA) , aerospace and defense services company AAR Corp (NYSE: AIR) , and electrical producers manufacturer nVent Electric (NYSE: NVT) are thinking because their stocks have outperformed the S&P 500 index by 29%, 35%, and 43% over the last year. The good news is they are still a good value and offer investors plenty of growth potential. Here's why.
The seed and crop protection company is set to rapidly expand its profit margins and profits in the coming years, and the good news is it has multiple levers to get there. Management plans to cut some $400 million in costs by 2025 amid refocusing its business on its core product lines and geographies. Meanwhile, the company is stepping up investment in research & development to continue developing new products, which usually carry higher margins.
In addition, Corteva is expanding sales of its systems developed under its own technology, meaning it can reduce the share of revenue paid in royalties to other companies. An example comes from its Enlist system, which already commands 45% of the U.S. soybean acreage, and management plans to get to 60% by 2025. The Enlist system is an example of a complementary seed and crop protection system (the seeds are resistant to the herbicide).
For further details see:
3 Red Hot Industrial Stocks to Buy Hand Over Fist in March