5 Best Heavy Equipment and Industrial Machinery Stocks to Buy

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. (NYSE:CNHI) 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. (NYSE:CNHI) to $20 from $21 and maintained an Overweight rating on the shares.

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