In this article, we discuss 5 best industrial stocks to buy now. If you want to read about some more industrial stocks, go directly to 13 Best Industrial Stocks To Buy Now.
5. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 49
General Electric Company (NYSE:GE) operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. It is one of the best industrial stocks to invest in. Reports indicate that General Electric Company (NYSE:GE) plans to restructure and resize its business. It is laying off workers at its inland wind unit as a part of the plan. The firm recently notified its workers in North America, Latin America, the Middle East, and Africa about the cuts and further plans to cut the unit’s onshore wind workforce in Europe.
On August 03, investment advisory Barclays kept an Overweight rating on General Electric Company (NYSE:GE) stock and lowered the price target to $78 from $81. Analyst Julian Mitchell issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Eagle Capital Management is a leading shareholder in General Electric Company (NYSE:GE), with 13 million shares worth more than $834.6 million.
In its Q2 2022 investor letter, Longleaf Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE:GE) was one of them. Here is what the fund said:
“General Electric Company (NYSE:GE) – Aviation, Healthcare and Power conglomerate GE was punished in the quarter amid top-down economic fears for this collection of seemingly cyclical businesses. However, the market is not giving the company credit for the material improvements CEO Larry Culp has made in his tenure. The balance sheet today is stronger than it has been in a very long time, and each of the three primary business segments each have strong paths to increasing earnings, regardless of the economic environment. Healthcare has historically not been a cyclical business. While Aviation typically has some economic sensitivity, the business still has a strong COVID rebound tailwind that should continue even in an uncertain environment. Power is a less cyclical business, and GE maintains a steady business servicing approximately one-third of the world’s electricity. GE is another example of strong insider buying indicating management’s confidence in the business, while the company also began buying back discounted shares. GE is still on track to break the company into three separate businesses, and we believe this will help the market properly weigh the value of each core segment.”
4. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
The Boeing Company (NYSE:BA) designs, develops, manufactures, sells, services, and supports products in the space and defense sector. It is one of the top industrial stocks to invest in. The Boeing Company (NYSE:BA) on October 9 reported that its 737 MAX flight has resumed flying into China for the first time in four years. The Boeing Company (NYSE:BA) has recently been lobbying to extend the deadline for certifying its 737 MAX 7 and MAX 10 jets and avoid a potentially costly compartment redesign.
On September 27, Morgan Stanley analyst Kristine Liwag kept an Overweight rating on The Boeing Company (NYSE:BA) stock with a $233 price target, stating the underperformance is related to beta and market, and it is not related to any other new developments.
At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Boeing Company (NYSE:BA), compared to 52 in the preceding quarter worth $1.4 billion.
3. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 54
3M Company (NYSE:MMM) operates as a diversified technology company worldwide. It is one of the major industrial stocks to invest in. On September 08, Wells Fargo analyst Joseph O’Dea kept an Equal Weight rating on 3M Company (NYSE:MMM) stock and lowered the price target to $125 from $144, remarking that the insolvency court’s denial of a prior instruction to the MDL trials against the firm was not viewed as a big surprise. The Equal Weight rating was given after hosting an expert call with Georgetown law professor Adam Levitin to discuss recent developments in the Combat Arms case.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and 3M Company (NYSE:MMM) was one of them. Here is what the fund said:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.”
2. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 65
Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. It is one of the major industrial stocks to invest in. Union Pacific Corporation (NYSE:UNP) recently announced that it had partnered with green technology company ZTR to collaborate on a project related to hybrid-electric engines. The first prototype is expected to be completed in 2023 and five additional engines are likely to be completed in 2024.
On September 30, Barclays analyst Brandon Oglenski kept an Overweight rating on Union Pacific Corporation (NYSE:UNP) stock and lowered the price target to $235 from $255.
At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Union Pacific Corporation (NYSE:UNP), compared to 89 the preceding quarter worth $7 billion.
In its Q2 2022 investor letter, Diamond Hill Capital Management, an asset management firm, highlighted a few stocks and Union Pacific Corporation (NYSE:UNP) was one of them. Here is what the fund said:
“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”
1. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 66
TransDigm Group Incorporated (NYSE:TDG) designs, produces, and supplies aircraft components in the United States and internationally. It is one of the elite industrial stocks to invest in. TransDigm Group Incorporated (NYSE:TDG) on August 09 announced that its Board of Directors has authorized and declared a special cash dividend of $18.50 on each outstanding share of common stock and cash dividend equivalent payments under options granted in its stock options plans. The dividend was distributed on August 26.
On August 17, JPMorgan analyst Seth Seifman kept a Neutral rating on TransDigm Group Incorporated (NYSE:TDG) stock and raised the price target to $705 from $685, saying that the company continues to execute commercial aftermarket strength and this more than offsets defense pressures afflicting the whole industry.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $4.7 billion in TransDigm Group Incorporated (NYSE:TDG), compared to 64 in the preceding quarter worth $5.6 billion.
In its Q2 2022 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and TransDigm Group Incorporated (NYSE:TDG) was one of them. Here is what the fund said:
“TransDigm Group Incorporated (NYSE:TDG) is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”
You can also take a peek at 10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners and Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon.
