77.98 -0.08 (-0.10%)
After hours: 4:26PM EDT
|Bid||77.88 x 800|
|Ask||77.90 x 800|
|Day's Range||77.29 - 78.44|
|52 Week Range||60.65 - 85.39|
|Beta (3Y Monthly)||1.27|
|PE Ratio (TTM)||24.70|
|Forward Dividend & Yield||0.96 (1.22%)|
|1y Target Est||N/A|
Are you ready for a new industrial revolution? According to RBC Capital, artificial intelligence (AI), autonomous transportation and cloud technology could completely transform the industrial marketplace within the next 5-10 years. As a result, the firm has just put together a report of some of the most promising industrial stocks taking advantage of these critical trends. These are the stocks that RBC believes will be leading the way come 2025.“Our call to action is this: with the pace of change accelerating, Industrials stakeholders must place increased focus beyond the next few quarters and into the years ahead” wrote the firm on September 5. With this in mind, let’s leave behind the current market turmoil and take a closer look at a few of the top industrial stock picks highlighted by RBC Capital’s latest 2025 report: 1\. General Motors Company (GM)In 2016, GM began preparing for the future of mobility by acquiring Cruise Automation, a self- driving vehicle startup. At the time, Cruise was developing hardware and software that would allow a vehicle to drive autonomously on the highway, and had been working on technology that would allow a vehicle to be fully autonomous. While Cruise is the company’s highest profile initiative, GM has looked to AI for other areas of their business as well. For instance, with IBM (IBM) they rolled out AI to their OnStar program, which gives them the capability of identifying information about the car and its surroundings. As an example, when fuel is low, the AI can route the vehicle to a nearby station and signal to the pump to activate and pay for the fuel.What’s more, RBC Capital believes the robo-taxi opportunity will grow exponentially through 2050. “GM is an automotive leader in the robo-taxi opportunity. This opportunity allows them to shift from selling units to miles. Selling miles could be a larger TAM [total addressable market] with higher profit, and reduced cyclicality. These factors could lead to a re-rating” cheers RBC Capital analyst Joseph Spak. In fact, this five-star analyst currently has a buy rating on GM with a $52 price target (37% upside potential). The Street also has a bullish Strong Buy consensus on GM right now: 2\. Albemarle Corp (ALB)If you are looking to play the electric vehicle trend but from a slightly different angle, then Albemarle is a great stock to consider. This chemicals giant is the 1 global producer of lithium which will be used heavily in electric vehicle (EV) batteries for at least the next decade. RBC Capital’s Arun Viswanathan singles out Albemarle as one of the companies best positioning and reinvesting to win in 2025. He has a buy rating on the stock with a price target of $83 (35% upside potential).Demand for lithium-ion batteries is growing at an exciting rate, says Viswanathan, driven by the global demand for electric vehicles, mobile devices and grid storage. “We believe lithium batteries will play a key role in advancing EVs, autonomous driving and reducing air pollution” he tells investors. And as the EV industry evolves, battery requirements will also need to evolve to address great safety needs and range specifications. Auto OEMs (original equipment manufacturers), suppliers and technology companies are going to need to collaborate in order to make autonomous vehicles a reality. These ambitious projects require the work of the collective minds and expertise to be completed says Viswanathan. And that’s where Albemarle comes in: “This is why we like companies such as Albemarle, which embraces the opportunity to build mutually beneficial relationships with business partners and local communities. As the next generation of autonomous driving and AI capabilities are developed, we would expect the chemical companies such as ALB and the coatings companies to have a higher degree of collaboration and exchange of ideas” the analyst writes. The stock has a Moderate Buy Street consensus, based on the last three-months of ratings. 3\. Xylem Inc (XYL)Smart water networks represent the biggest growth opportunity within the global water sector, says RBC Capital. Global water infrastructure is currently under strain from aging equipment, and there’s an urgent need for investment and improved management. The solution to this dilemma is known as smart water networks. Using connected devices, the Internet of Things and IT, municipalities can improve monitoring and diagnostics, optimize investments and ensure better infrastructure care. “No water company has advanced smart water networks and solutions more capably or aggressively than Xylem, in our view” comments RBC’s Deane Dray. This top-rated analyst recently reiterated his XYL buy rating with an $83 price target (10% upside potential).Indeed, Xylem has stated that nearly 50% of its revenues are now either smart or smart-enabled, thanks to its landmark acquisition of Sensus and disruptive Advanced Infrastructure Analytics (AIA) platform. Looking ahead management expects organic revenue growth for AIA to outpace the rest of its portfolio by at least 2x over the long-term, implying a double-digit pace of growth.For instance, its new specialized buoys in the water off of JFK and LGA airports are equipped with water test equipment to detect jet fuel spills and de- icing chemicals. Another example: A private utility in Singapore was experiencing leaks and breaks and was unable to determine the cause. Using Xylem’s high sample rate pressure sensors and analytics, the utility was able to discover and fix the problem, generating significant savings. Overall, the Street has a Moderate Buy consensus on XYL. 4\. Aptiv PLC (APTV)Next comes Aptiv- a global auto parts company based in Ireland. “We continue to believe Aptiv is a leader and key enabler of autonomous driving” enthuses RBC's Joseph Spak. The company snapped up self-driving specialist Ottomatika (a Carnegie Mellon spin-off and winner of the 2007 DARPA Urban Challenge) in 2015. In 2017, GM also splashed out on nuTonomy, a leading developer of autonomous driving software solutions- further strengthening its position in the global autonomous mobility market. While the autonomous mobility on-demand opportunity is still in its early days, Aptiv expects initial driverless tests to occur by the end of 2020, with increased scale as hardware becomes automotive grade in 2025. Management has indicated they believe Aptiv’s autonomous driving revenue will be $500mm by 2025. At scale, the company expects 70%-80% of its autonomous mobility revenue to come from recurring revenue streams.As a result, Spak concludes: “The company has positioned the portfolio to be a key supplier for the signal and power architecture needed in vehicles of the future, autonomous driving and connectivity. Aptiv is also adopting new business models and is one of the first companies to show real- world monetization of their autonomous vehicle investment.”In a July 31 report aptly titled ‘The Cream Rises to the Top’ the analyst reiterated his buy rating on Aptiv while ramping up the price target from $88 to $97 (15% upside potential). Analysts rate the stock Moderate Buy, according to the Street consensus. 5\. Deere & Company (DE)Recent UN estimates indicate one in nine people experienced chronic hunger in 2018 with the total global population continuing to grow. To help meet rising food requirements while coping with limited natural resources, the firm believes smart farming will become increasingly important. “We expect the trend toward “smart farming” -- including AI/machine learning -- to accelerate as farmers search for ways to maximize productivity/yield, improve crop quality, and reduce costs/improve machine uptime in the face of relatively low commodity prices and stressed natural resources (land/water)” writes the firm’s Seth Weber. This can include everything from using drones to spray crops, to generating crop insights from advanced data analysis.He continues: “We see Deere as well positioned for this trend.” Indeed, Weber currently has a buy rating on DE with a $175 price target (15% upside potential). In particular, the analyst expects that farming machinery, like cars, will become increasingly autonomous. This should reduce the need for farm workers, while improving productivity. So far GPS guidance and assisted steering have been widely available in tractors, but self-driving systems have remained elusive. As Weber notes, John Deere built its first autonomous navigation system in the 1990s with NASA, and much more recently unveiled an autonomous tractor at the CES 2019 conference.However, regulatory hurdles and gaining comfort with unmanned equipment are potential challenges- so watch this space. Overall the Street has a cautiously optimistic take on DE right now:Discover the Street’s favorite ‘Strong Buy’ stocks with TipRanks’ Stock Screener
Xylem's (XYL) partnership with Planet Water Foundation will cater to the growing requirements of clean and safe drinking water in disadvantaged communities across remote and rural areas.
Xylem (XYL) is likely to gain from solid growth prospects in utilities and commercial end markets, shareholder-friendly policies, and long-term tailwinds. Weakness in the European business is dragging.
It looks like Xylem Inc. (NYSE:XYL) is about to go ex-dividend in the next 4 days. If you purchase the stock on or...
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Xylem's (XYL) second-quarter 2019 earnings meet estimates and improve year over year on sales growth and margin improvement. The company lowers 2019 earnings projection.
Xylem (XYL) delivered earnings and revenue surprises of 0.00% and 0.02%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Xylem's (XYL) second-quarter 2019 profitability will likely suffer from adverse impacts of forex woes, and high costs related to realignment initiatives, tariffs and growth investments.
Xylem (XYL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
How far off is Xylem Inc. (NYSE:XYL) from its intrinsic value? Using the most recent financial data, we'll take a look...
Xylem Inc NYSE:XYLView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for XYL with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding XYL are favorable, with net inflows of $7.81 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
[Editor's note: "The 5 Best Industrial Stocks to Buy Today" was previously published in February 2019. It has since been updated to include the most relevant information available.]It's no secret that industrial stocks move and groove with the overall economy. That was kind of a problem last year. Thanks to the worries about slowing global growth and the trade war with China, many industrial stocks fell by the wayside. The broad sector measure of industrial stocks -- the Industrial Select Sector SPDR Fund (NYSEARCA:XLI) -- sank by over 13% last year as investors ran from the economically sensitive sector.But investors may not want to dump industrial stocks just yet.InvestorPlace - Stock Market News, Stock Advice & Trading TipsProgress continues to be made on the trade front and recent meetings between the U.S. and China have gone in a positive direction. Meanwhile, here at home, economic data seems to be stabilizing after a few months of steady drops. With the Federal Reserve pausing on rate hikes and even considering cutting them, we could still see some more quarters of gains for the sector. No wonder why the sector has rebounded in a big way. XLI has jumped nearly 20% so far this year and is leading the market.The best part is that several industrial stocks are still trading for discounts to the overall market. And with that as well as the potential for thawing on tariffs/trade, the sector could be ripe for the picking. * 10 Stocks to Sell for an Economic Slowdown But which industrial stocks could make sense in today's market? Here are five of the best industrials to buy today. Corning (GLW)I bet if I asked you what one of the fastest growing sectors were, glass wouldn't even make into the top five. After all, who uses glass anymore? But for industrial stalwart Corning (NYSE:GLW), glass is driving double-digit revenue growth.That growth from glass is coming from two major factors. First off, GLW is still the fiber optics king and makes solutions for telecom networks, data centers, and networking customers. With cloud computing, the upgrade to 5G wireless and increased data usage all converging, Corning has seen demand for its fiber optic cables surge. In the first quarter, optical communications revenues jumped an impressive 20% year-over-year. With our modern lives demanding, even more, data/connectivity, Corning should see more revenue gains for its optics products.The second factor is device adoption itself. Corning's Gorilla Glass has become the standard on many smartphones, wearable devices, augmented reality displays and now automobile dashboards/infotainment units. For GLW, this again has translated into some impressive revenue growth.All of this has helped profits and cash flows at the firm. After building out capacity last year, sales have translated back in earnings-per-share gains, as core EPS jumped 29% year-over-year . Moreover, GLW has continued to return excess capital to shareholders via buybacks and dividends.With growth still at hand, Corning could be one of the best industrial stocks to own in the quarters ahead. Dover (DOV)Like many industrial stocks, Dover (NYSE:DOV) has its hands in many soups. This includes everything from your local service station's gasoline pump to the refrigeration units at your local grocery store. Its wide product catalog across automation equipment, refrigeration and fluid management has allowed the firm to reward shareholders over its history. DOV has managed to pay an increasing dividend for the last 63 years.And it looks like that streak will continue.DOV has moved forward with some restructuring plans to reduce costs and improve margins. Likewise, accreditive buyouts and bolt-on acquisitions have worked in its favor and have reduced the bumpiness in its refrigeration segment. Because of this, Dover managed to see a 29% adjusted earnings increase during the last quarter. Sales grew by 5%. This highlights that the restructuring is working and the steady nature of Dover's product mix. Many of DOV's products tend to be must-haves for other consumer and industrial applications. This makes them a bit immune to changes in the economy. * 10 Stocks to Sell for an Economic Slowdown With a forward price-to-earnings ratio of 15.80 and a 1.9% yield, Dover could be a great industrial stock to buoy your portfolio. Xylem Inc (XYL)Perhaps one of the most critical commodities out there happens to be water. Moving, cleaning and storing it for our ever-increasing population is becoming a paramount issue. And Xylem Inc (NYSE:XYL) is the industrial stock to make that happen.With its appropriate name, the former spin-off from industrial giant ITT (NYSE:ITT) makes a whole host of equipment like pumps, controllers and filtration devices for wastewater treatment plants across the globe. That's a great position to be in. Growth in water treatment is steady and surging.Here in the U.S., replacing aging water infrastructure has become a top priority. Moreover, XYL has quickly moved in helping utilities with smart-metering, leakage detection and other efficiency applications. That provides plenty of higher margins versus just pumps.Secondly, Xylem's real growth is coming from overseas. Just after its spin-off, Xylem changed its strategy and started looking towards key markets like China, the Middle East and South East Asia. Here, populations are growing and access to clean water is shrinking. Last quarter, XYL managed to score a 12% gain in adjusted net income.The shift to higher margin products and to the emerging world has helped XYL boost its cash flows, reduce its debt and pad shareholder's pockets as well.At a forward P/E of 21.6, XYL isn't super-cheap. But when it comes to industrial stocks, it has an impressive growth profile and it is worth the slight premium. Ingersoll-Rand (IR)Ingersoll-Rand (NYSE:IR) could be leading the pack of industrial stocks … at least when it comes to sector moves. The firm slimmed down in a big way after the recession. And now that many of its peers -- like General Electric (NYSE:GE), Honeywell (NYSE:HON) and United Technologies (NYSE:UTX) -- are splitting apart, IR is building up its portfolio of products.This time, Ingersoll-Rand made its biggest buyout ever. IR agreed to pay $1.45 billion for Precision Flow Systems from a group of private equity investors. Precision Flow makes a bunch of engineered pumps, boosters and other systems for water, chemicals and food and beverage customers. This is an easy bolt-on for IR's current fluids management business and actually would nearly triple the size of its current revenues from the segment.At the same, IR has continued to see more demand from its air conditioning and HVAC unit Trane. Both here and across the world, heating and cooling are often the biggest demanders of electricity/power. With global energy surging, especially in key emerging markets, IR has steadily clipped higher revenues from the unit.All of this has made, IR a growth machine among industrial stocks. The firm saw continuing EPS grow more than 61% during Q1 and more than 24% for all of 2018. * 10 Stocks to Sell for an Economic Slowdown For investors looking for a great growth industrial stock, IR is it. iShares U.S. Industrials ETF (IYJ)Perhaps the best way to play the surge in industrial stocks is to own them all. Here's where exchange-traded funds can come in handy. However, investors may want to bypass the previously mentioned XLI and choose the iShares U.S. Industrials ETF (NYSEARCA:IYJ) instead.For one thing, the IYJ has a much broader portfolio of holdings and includes more mid-cap industrial stocks in its portfolio. These mid-caps have provided plenty of growth as well as being M&A targets for the sector. It has also allowed IYJ to outperform the XLI over the longer haul. Over the last ten years, the iShares fund has managed to produce an average annual return of over 13%. At the same time, you still get plenty of large-cap industrial stocks as well. Top holdings in the ETF include Honeywell, Boeing (NYSE:BA) and 3M (NYSE:MMM).As trade begins to thaw and the economy continues to move along, IYJ should be able to post some impressive returns. In the meantime, investors can clip at 1.3% dividend yield.While IYJ isn't the cheapest ETF in the world -- at 0.43% or $43 per $10,000 invested in expenses -- it's certainly not high-priced. And with a strong performance and breadth of holdings, it could be a great way to play all the industrial stocks out there.As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post The 5 Best Industrial Stocks to Buy Today appeared first on InvestorPlace.
If you are looking for compelling investing opportunities, consider an often-overlooked area of the market: industrial stocks.Industrials frequently have made headlines because its components have been pressured by tariff volleys between the U.S. and China. But despite this, the industrial sector of the Standard & Poor's 500-stock index, at 12.6% returns, is the third-best-performing sector of the market behind technology and real estate. And profit growth could see industrial stocks continue to outperform the broader market."We're living in a world where growth is declining," John Davi, chief investment officer at Astoria Portfolio Advisors, told CNBC back in March. "S&P; 500 earnings are de-accelerating, so if you can get stocks that have above-average growth to the S&P;, then that's really attractive." And while consensus estimates have been scaled back since then, FactSet's Earnings Insight still shows that industrials are expected to grow profits 5.2% this calendar year - better than the 3.2% projected for the S&P; 500.The sector still faces headline risk, so you only want to buy the best of the best. To help with that, we've pinpointed 10 of the Street's best-rated industrials by using TipRanks' Stock Screener to scan only for companies in the industrial sector with a "Strong Buy" analyst consensus. The result: This group of 10 industrial stocks to buy. SEE ALSO: 50 Top Stocks That Billionaires Love
Hedge fund managers like David Einhorn, Bill Ackman, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing […]