4 Industrial Stocks To Check Out This Week
With interest rate hikes on the horizon and the bearish moves among hyper-growth names, industrial stocks seem appealing in a volatile stock market. There’s also a lot to like about stocks in the industrial space given the prospects of the improving economy. That’s because many of these businesses tend to perform relatively well. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector. While many signs point toward a strong year for the industrial sector, investors still need to be highly selective when putting up a list of top industrial stocks to buy .
“If GDP continues to expand as we expect in 2022 (short-term setbacks notwithstanding) and interest rates inch higher. Value-oriented sectors such as financials, industrials, materials and energy might once again take the lead.” – Janus Henderson Investors strategists
Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending globally. It’s also important to note that industrial stocks encompass a broad category of companies. And if you expect the residential real estate market to continue to be in demand in the years to come, then an investment in Builders FirstSource ( NYSE: BLDR ) might be attractive. Its one-stop shop for all manufacturing, supply and installation needs places the company in a strong position within the sector. Amid these shifting sectoral winds, here are some of the prominent industrial stocks to check out in the stock market this week.
Top Industrial Stocks To Watch In January 2022
- Boeing Company ( NYSE: BA )
- Deere & Company ( NYSE: DE )
- Planet Labs PBC ( NYSE: PL )
- Caterpillar Inc. ( NYSE: CAT )
Starting off our list is a top name in the aerospace industry, Boeing . In short, Boeing is a multinational corporation that designs, manufactures, and sells aerospace equipment. This ranges from airplanes, rotorcrafts, and rockets to satellites and telecommunication wares to name a few. Additionally, the company boasts more than 10,000 Boeing-built commercial airlines that are in service worldwide. This makes up for almost half of the world fleet. The company is America’s biggest manufacturing exporter and employs more than 140,000 people across the U.S and in more than 65 countries. Over the past month, BA stock has risen by over 17%.
Just last week, Bloomberg reported that the 737 MAX might be recertified to fly in China by the end of January. Before this, the MAX jet was grounded worldwide from March 2019 to November 2020 after two incidents of MAX jet crashes. However, since then, most countries have recertified the plane for commercial service except for China. In fact, China accounts for about 25% of global jet demand. Also, Chinese airline companies owned 22% of the MAX jets that were built before the grounding. Accordingly, jet orders destined for China represent roughly one-third of Boeing’s inventory of undelivered MAX planes. On that note, would you consider BA stock as it takes off?
Deere & Company
Next up, we will be taking a look at Deere & Company , otherwise known as John Deere. For the most part, it is a manufacturing company. Namely, the company is in the business of making agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains among others. Since its COVID-era low, DE stock has risen astronomically by over 200%.
Two weeks ago at CES 2022, John Deere revealed a fully autonomous tractor that’s ready for large-scale production. The machine combines Deere’s 8R tractor, TruSet-enabled chisel plow, and other new advanced technologies. Because of this, John Deere is slowly building a reputation for being the ‘Tesla’ of farming. In detail, the autonomous tractor has an array of cameras, allowing 360-degree obstacle detection and distance calculation. This allows the tractor to determine if it should move or stop, depending on if an obstacle is detected. Besides that, farmers can monitor the machine’s status from their mobile devices while they focus on other tasks. With this breakthrough in agriculture tech, would DE stock be a top buy in your book?
Following that is Planet Labs . Formerly known as dMY Technology Group, the company is a provider of global, daily satellite imagery and geospatial solutions. In detail, their operations include designing, building, and operating satellites that capture and compile data from over three million images per day. Planet Labs’ automated, cloud-native platform processes and manages that data and extract information. By doing so, it is able to provide imagery, insights, and machine learning for clients to make better decisions. Over the past week, PL stock has increased by over 17%.
On January 13, Planet Labs launched its Flock 4x satellite fleet consisting of 44 SuperDove satellites into orbit. Accordingly, the satellites were launched on a Space X Falcon 9 rocket and joined Planet Labs’ existing fleet of 200 satellites in orbit. Notably, this launch will further improve the company’s ability to collect earth observation data and offer clients the most up-to-date image of their preferred area of interest. In other news, Goldman Sachs ( NYSE: GS ) analyst Noah Poponak gave PL stock a buy rating, aligning it with analyst consensus which comes from three buy ratings for the stock. The Goldman Sachs analyst also gave the stock a price target of $11 per share, a gain of over 70% from Friday’s closing price of $6.36. Given these developments, does PL stock deserve a spot on your watchlist?
Summing up our list is Caterpillar . In brief, Caterpillar is primarily a construction machinery and equipment company. It designs, develops, and manufactures a wide variety of products for the construction industry. Aside from that, it offers customers construction-related financial products and insurance solutions as well. Put together with its global network of operations, it is no wonder that Caterpillar is the world’s largest construction equipment manufacturer. Over the past month, CAT stock has risen by over 13%.
In December, BNSF Railway, Chevron ( NYSE: CVX ), and Caterpillar announced that they will be collaborating on a locomotive pilot to “confirm the feasibility and performance of hydrogen fuel for use as a viable alternative to traditional fuels for line-haul rail.” Progress Rail, a Caterpillar company, will design and build a prototype hydrogen fuel cell-powered locomotive. Whilst Chevron will develop the fueling concept and infrastructure. On the other hand, BNSF will make available its line for prototype testing. Hence, this collaboration is an important step towards potentially developing a more sustainable, lower-carbon solution for line-haul services. With this in mind, is CAT stock one to watch right now?
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