10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

Published May 2, 2023 at 8:56 am EDT Updated August 19, 2026 at 9:45 am EDT

In this article, we will take a look at the 10 best heavy equipment and industrial machinery stocks to buy now.

The heavy equipment and industrial machinery industry plays a vital role in driving economic growth and development across various sectors. From construction and manufacturing to mining and infrastructure, these companies provide the backbone for progress and efficiency.

The Heavy Equipment and Industrial Machinery Industry: An Analysis

The global heavy equipment and industrial machinery industry has experienced significant growth in recent years, driven by rising construction activities and government initiatives worldwide. According to an industry analysis report by Grand View Research, the global construction equipment market was worth $183.48 billion in 2022 and is expected to reach a value of $346.2 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.3% over the forecasted period. This growth is primarily attributed to increasing construction investments, government programs, and the demand for better infrastructure in developing economies.

The construction equipment market offers exciting opportunities, particularly with the emergence of electric construction equipment. Although in its early stages, electric equipment, such as battery-powered excavators and wheel loaders, presents numerous benefits in terms of maintenance, noise reduction, and operator convenience.

Region-wise, Asia Pacific dominated the construction equipment market, accounting for over 45.77% of the global revenue share in 2022. The APAC region is expected to grow its revenue share by 9.2% from 2023 through 2030. The region’s robust growth is propelled by favorable government policies, increasing urbanization, and infrastructure development in major economies in the region such as China and India.

The heavy equipment and industrial machinery industry is expected to grow at a healthy high single-digit rate through 2030. Investing in heavy equipment and industrial machinery stocks can help investors capitalize on the secular growth trends of this industry. Some of the best heavy equipment and industrial machinery stocks to buy now include CNH Industrial N.V. (NYSE:CNHI), Caterpillar Inc. (NYSE:CAT), and Deere & Company (NYSE:DE). Let’s now discuss these stocks, among others, in detail below.

Best Heavy Equipment and Industrial Machinery Stocks to Buy

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Our Methodology

We used Yahoo Finance’s stock screener to screen for companies operating in the heavy equipment and industrial machinery industry. We compiled a list of 29 stocks and sourced each stock’s hedge fund sentiment from Insider Monkey’s database of approximately 900 institutional investors. Finally, the stocks that were the most widely held by hedge funds were selected for this list. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them.

10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

10. The Shyft Group Inc. (NASDAQ:SHYF)

Number of Hedge Fund Holders: 16

The Shyft Group, Inc. (NASDAQ:SHYF) is a leading global manufacturer of specialty vehicles for the commercial vehicle and recreational vehicle industries. This February, DA Davidson analyst Michael Shlisky revised his price target on The Shyft Group, Inc. to $32 from $38 and maintained a Buy rating on the shares.

On April 27, The Shyft Group, Inc. posted earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.12 and outperformed EPS estimates by $0.10. The company generated a revenue of $243.44 million, up 17.67% year over year and ahead of Wall Street consensus by $17.48 million.

Shares of The Shyft Group, Inc. have gone up by 9.14% over the past 6 months, as of April 28, and the stock is offering a forward dividend yield of 0.80%. The Shyft Group, Inc. is one of the best heavy equipment and industrial machinery stocks to buy now.

At the end of Q4 2022, 16 hedge funds were long The Shyft Group, Inc. and held stakes worth $106.5 million in the company. Of those, Driehaus Capital was the leading investor in the company and disclosed a position worth $24.9 million.

Heartland Advisors made the following comment about The Shyft Group, Inc. in its Q4 2022 investor letter:

“The Shyft Group, Inc. (NASDAQ:SHYF) is a leader in specialty vehicles, including “last mile” delivery vans used in ecommerce. More than a year ago, the company announced plans to develop an electric parcel-delivery vehicle, investing $75 million at launch. Concern over the elevated operational risks and spending associated with the program weighed on the stock, sending shares down almost 49% this year.

The company has unique growth opportunities, and we believe the EV expenditures will ultimately be money well spent, as it expands the addressable market and protect against competitive offerings. The business is priced at only 8.2X our estimate for Enterprise Value to EBITDA, substantially below its intrinsic worth.”

9. Wabash National Corporation (NYSE:WNC)

Number of Hedge Fund Holders: 23

Wabash National Corporation (NYSE:WNC) is a premier manufacturer of semi trailers and liquid transportation systems. As of April 28, the stock has returned 18.57% to investors over the past 6 months and is trading at a PE multiple of 8x. Wabash National Corporation is placed ninth among the best heavy equipment and industrial machinery stocks to buy now, according to hedge funds.

On April 26, Wabash National Corporation reported strong earnings for the first quarter of fiscal 2023. The company generated a revenue of $620.95 million, up 13.57% year over year. The company reported earnings per share of $1.04 and outperformed EPS estimates by $0.56.

On February 3, BMO Capital analyst Joel Tiss raised his price target on Wabash National Corporation to $27.50 from $17 and maintained a Market Perform rating on the shares.

Wabash National Corporation was a part of 23 investors’ portfolios at the end of Q4 2022. These funds held collective positions worth $129.8 million in the company. As of December 31, Driehaus Capital is the top investor and has a stake worth $13.5 million.

ClearBridge Investments made the following comment about Wabash National Corporation in its Q4 2022 investor letter:

“One of the portfolio’s greatest contributors was Wabash National Corporation (NYSE:WNC), which designs, manufactures and distributes engineered solutions for the transportation, logistics and distribution industries. Continued strong demand for trailers helps drive sales for Wabash and benefited the stock price in the quarter. The company’s revamped pricing model has helped strengthen its margins and a growing backlog of new orders points to continued and greater potential value creation over the foreseeable future.”

In addition to CNH Industrial N.V., Caterpillar Inc., and Deere & Company, Wabash National Corporation is also one of hedge funds’ top picks from the heavy equipment and industrial machinery industry.

8. Lindsay Corporation (NYSE:LNN)

Number of Hedge Fund Holders: 24

Lindsay Corporation (NYSE:LNN) is an American manufacturer of farm & construction machinery and road & railroad infrastructure equipment. 24 hedge funds disclosed having stakes in Lindsay Corporation at the end of Q4 2022. The total value of these stakes amounted to $146.4 million. As of December 31, Impax Asset Management is the largest shareholder in the company and has a stake worth $12.1 million.

This April, Stifel analyst Nathan Jones revised his price target on Lindsay Corporation to $166 from $196 and reiterated a Buy rating on the shares.

On April 4, Lindsay Corporation released earnings for the fiscal second quarter of 2023. The company’s revenue for the quarter amounted to $166.24 million, and the company reported an EPS of $1.63, beating market expectations by $0.09. Lindsay Corporation is one of the best heavy equipment and industrial machinery stocks to buy now.

7. Oshkosh Corporation (NYSE:OSK)

Number of Hedge Fund Holders: 26

Oshkosh Corporation (NYSE:OSK) is a global company involved in the design and manufacturing of specialty trucks and access equipment vehicles. On April 27, Oshkosh Corporation posted market-beating earnings for the first quarter of fiscal 2023. The company generated a revenue of $2.27 billion, up 16.57% year over year and ahead of Wall Street consensus by $179.27 million. The company reported earnings per share of $1.59 and outperformed EPS estimates by $0.56.

Wall Street is bullish on Oshkosh Corporation and the stock is one of the best heavy equipment and industrial machinery stocks to buy now. This April, Stifel analyst Stanley Elliott updated his price target on Oshkosh Corporation to $101 from $109 and maintained a Buy rating on the shares.

Oshkosh Corporation was spotted on 26 hedge funds’ portfolios at the end of Q4 2022. These funds disclosed collective stakes worth $318 million in the company. As of December 31, Greenhaven Associates is the dominant shareholder and has disclosed a position worth $153 million.

6. Terex Corporation (NYSE:TEX)

Number of Hedge Fund Holders: 26

Terex Corporation (NYSE:TEX) is a leading global manufacturer of materials processing machinery. The company has two business divisions: Aerial Work Platforms and Materials Processing. As of April 28, the stock has returned 28.54% to investors over the past 12 months. Terex Corporation is placed sixth among the best heavy equipment and industrial machinery stocks to buy now, according to hedge funds.

On April 12, Deutsche Bank analyst Nicole Deblase raised her price target on Terex Corporation to $53 from $51 and reiterated a Hold rating on the shares.

At the close of the fourth quarter of 2022, 26 hedge funds were bullish on Terex Corporation and disclosed positions worth $393 million in the company. Of those, Pzena Investment Management was the most prominent stockholder in the company and disclosed a position worth $175.3 million.

Stocks from the heavy equipment and industrial machinery sector that are currently on hedge funds’ and analysts’ radars include Terex Corporation, CNH Industrial N.V., Caterpillar Inc., and Deere & Company.

5. AGCO Corporation (NYSE:AGCO)

Number of Hedge Fund Holders: 31

AGCO Corporation (NYSE:AGCO) is a leading global manufacturer of agricultural equipment and machinery. As of April 28, the stock is trading at a TTM PE ratio of 10.44 and is offering a forward dividend yield of 0.94%. AGCO Corporation is placed fifth on our list of the best heavy equipment and industrial machinery stocks to buy now.

On April 12, Deutsche Bank analyst Nicole Deblase revised her price target on AGCO Corporation to $137 from $140 and reiterated a Hold rating on the shares.

31 hedge funds held stakes in AGCO Corporation at the close of the fourth quarter of 2022. The total value of these stakes amounted to $462 million. As of December 31, Balyasny Asset Management is the largest shareholder in the company and has a stake worth $80.9 million.

4. CNH Industrial N.V. (NYSE:CNHI)

Number of Hedge Fund Holders: 32

At the end of Q4 2022, 32 hedge funds were eager on CNH Industrial N.V. and held stakes worth $1.1 billion in the company. Of those, Harris Associates was the leading investor in the company and disclosed a position worth $1.4 billion.

On April 20, Morgan Stanley revised its price target on CNH Industrial N.V. to $20 from $21 and maintained an Overweight rating on the shares.

CNH Industrial N.V. is trading at an attractive PE multiple and is offering a decent dividend yield. As of April 28, the stock has a TTM PE ratio of 9.40 and is offering a forward dividend yield of 2.80%. CNH Industrial N.V. is one of the best heavy equipment and industrial machinery stocks to buy now.

Meridian Funds made the following comment about CNH Industrial N.V. in its Q4 2022 investor letter:

“CNH Industrial N.V. (NYSE:CNHI) is the No. 2 global manufacturer of agricultural and construction machinery. A new management team in early 2021 started implementing a plan to simplify the business by divesting its less-profitable and non-competitive segments while bolstering its commitment to agricultural machinery. The operating improvements started taking hold in 2022 as the company shed its European heavy truck business and earnings growth accelerated on operational excellence late in the year. Additionally, the company announced a stock buyback plan and announced several autonomous solutions designed to reduce farming costs and aid sales growth. Despite uncertainties around the global macroeconomic outlook, CNH highlighted robust growth prospects for global farm machinery sales as the agricultural industry looks to offset inflation costs worldwide with increasingly automated farming techniques. Encouraged by the results and outlook, we increased the Fund’s position during the quarter.”

3. PACCAR Inc (NASDAQ:PCAR)

Number of Hedge Fund Holders: 38

On April 25, PACCAR Inc (NASDAQ:PCAR) announced earnings for the fiscal first quarter of 2023. The company reported an EPS of $2.25 and outperformed EPS estimates by $0.42. The company’s revenue for the quarter grew by 31.83% year over year and amounted to $8.05 billion, ahead of Wall Street consensus by $275.89 million.

Wall Street analysts see material upside to PACCAR Inc and the stock is one of the best heavy equipment and industrial machinery stocks to buy now. This April, BMO Capital analyst John Joyner raised his price target on PACCAR Inc to $81.50 from $60 and reiterated a Market Perform rating on the shares.

PACCAR Inc was a part of 38 hedge funds’ portfolios at the close of Q4 2022. These funds held stakes worth $712 million in the company. As of December 31, Harris Associates is the top stockholder in the company and has disclosed a stake worth $187 million.

Madison Investments made the following comment about PACCAR Inc in its Q1 2023 investor letter:

“Heavy duty truck manufacturer PACCAR Inc (NASDAQ:PCAR) has quietly been one of our best performers over the past year. It, too, has surprised us to some extent, with the resiliency that it’s showing in a slowing trucking market. We think there’s a decent chance that weakness in its end markets will eventually catch up with PACCAR, but we believe the stock is cheap, and its steady parts business will act as a moderate stabilizer in such a scenario.”

2. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50

As April 28, Caterpillar Inc. is trading at a TTM PE ratio of 16.18 and is offering a forward dividend yield of 2.19%.

On April 12, Deutsche Bank revised its price target on Caterpillar Inc. to $225 from $228 and maintained a Hold rating on the shares.

On April 27, Caterpillar Inc. posted strong earnings for the first quarter of fiscal 2023. The company generated a revenue of $15.86 billion, up 16.73% year over year and ahead of Wall Street estimates by $587.59 million. The company reported earnings per share of $4.91 and beat EPS expectations by $1.12.

Caterpillar Inc. was spotted on 50 investors’ portfolios at the end of Q4 2022. These funds disclosed collective positions worth $5.1 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the most prominent shareholder and has disclosed a position worth $1.7 billion.

Diamond Hill Capital made the following comment about Caterpillar Inc. in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 63

On February 22, Deere & Company declared a quarterly cash dividend of $1.25 per common shares, up 4.2% from the company’s prior dividend of $1.20. The common stock cash dividend is payable on May 8 to shareholders of record on March 31. As of April 28, the stock is offering a forward dividend yield of 1.32%.

On April 14, DA Davidson analyst Michael Shlisky maintained a Buy rating and his $520 price target on Deere & Company.

Deere & Company was held by 38 hedge funds at the close of Q4 2022. These funds held positions worth $3.6 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the top investor in the company and has a stake worth $1.6 billion.

ClearBridge Investments made the following comment about Deere & Company in its Q4 2022 investor letter:

“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”

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