A Selective Sentiment on the Industrial Equipment, Aerospace and Defense Sectors: Expert Analyst Brian K. Langenberg Discusses His Outlook and Top Picks with The Wall Street Transcript
67 WALL STREET, New York - May 29, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Commercial Aviation and Energy Expenditures - Industrial Restructuring - Emerging Markets Penetration - Heightened M&A Activity - Defense Budget Uncertainty - Capital Equipment Technology Investing
Companies include: Boeing Co. (BA), Rockwell Automation Inc. (ROK), ABB Ltd. (ABB), Emerson Electric Co. (EMR), General Electric Co. (GE), Caterpillar Inc. (CAT), SPX Corporation (SPW) and many more.
In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, an expert analyst discusses the outlook for the sector for investors:
TWST: What will you be looking for or paying most attention to in the next round of quarterly announcements?
Mr. Langenberg: We track data points throughout the quarter, but I will closely watch for confirmation that rising construction-equipment production rates, combined with lower material costs, are translating into higher incremental margin. Additionally, I expect to hear decent HVAC-related results - air conditioning, nonresidential construction.
Third, we will listen for signs of heavy, long-cycle capital investment. This would include progress in translating long-cycle power-generation preorder activity into backlogs.
The thing I will be watching for is the pace of investment in industrial automation and process automation. By industrial automation I mean things made by a Rockwell (ROK) or an ABB (ABB), for example, or an Emerson (EMR), investment in productive capacity.
I don't get the sense that the global economy is trying to put up a lot of footprint; maybe it's more completing what they have. Those are the things I'll be paying attention to. We anticipate short cycle will mean revert after a weak 1Q and come in a bit stronger.
I think mining will do better sequentially in the second quarter, not necessarily year over year. Mining, on the surface - pun intended - is a small percentage of our sector. Indirectly, high utilization and high commodity prices correlate with a strong economy and high capital spending and vice versa.
TWST: What are some of your top stock picks right now?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
