The economic shutdowns globally due to the coronavirus pandemic have made a significant impact on industrial stocks. The industrial sector as a whole is down roughly 12% year-to-date and experts fear the number will get even worse because of current lags. An investor who has a portfolio heavily favoring the industrial sector likely hasn’t seen a lot of good news with their investments lately. However, the current downward trend doesn’t mean there aren’t any investment opportunities in the sector. While these companies may not be seeing the success they want or planned for this year, they are still rated as good options to buy in the stock market.
Masco is a major supplier of architectural and plumbing products for home improvement retailers and home builders. It is one of the few industrial stocks that has seen a positive gain year-to-date with plenty of room to grow. The market for housing building products has rebounded nicely since about April and should continue to see a positive trend. As a result, most stock market experts believe Masco offers good investment opportunities for investors at this time.
Jacobs Engineering is an engineering and construction firm offering specific construction services for water and wind tunnel design-build projects, cybersecurity services, artificial intelligence, data analytics, and more. The diversity in the services offered makes Jacobs Engineering a viable option for almost any portfolio in the industrial sector. With the low stock prices today, this would be a great buy for an investor since experts predict a 20% upside in the next 12 months or so.
Northrop Grumman is involved in the defense and aerospace industry, which has surprisingly seen some positive actions in recent weeks. Like other companies in the industrial sector, Northrop Grumman stocks are lower than normal, but the company is still projected to deliver average annual earnings growth of nearly 10% in the next five years. Combine this with the projected stock price increasing roughly 25% in the next year and Northrop Grumman could be a solid option to consider.
IHS Markit is involved in the shipping, transportation, and resources industries by providing companies with analytics, data, and other information. This stock took a significant hit in March, but has rallied in the months following. Most stock market experts believe IHS Markit stock is undervalued and offers great buying potential, especially with the projected profit growth being double digits in the next five years.
While the industrial sector as a whole has taken a major hit in the last 5-6 months, these companies still offer great investment opportunities for any investor interested in the industrial sector. At Stock Investing Info, we look at future projections as well as historical data to make any recommendations whether a particular stock is a good buy or a bad one. We agree with industry experts that these stocks are worth looking into right now, so contact us if you have any specific questions about them or the industrial sector as a whole.