Terex Corporation (TEX), Ingersoll-Rand PLC (IR): These Equipment Firms Look Ready to Fly

Cummins Inc. (NYSE:CMI) also supplies engines for the Chrysler Dodge Ram. With Chrysler filing bankruptcy in 2009, Cummins’ profits took a tumble. But car manufacturers, including Chrysler, are back on their feet, and that’s good news for Cummins and its shareholders.

I see nothing but positive things ahead for Cummins, since it is a major manufacturer of hybrid and natural gas bus engines — an attractive option for cities that want to embrace both environmental friendliness and fuel economy in their public transit fleets.

This stock is a buy

Cummins will do well in the years ahead because of its ability to develop the types of equipment that people want to buy. The company has dedicated much of its research and development budget toward building environmentally friendly engines and parts. It is becoming more and more evident that an environmental focus is important for transportation-related companies.

While Terex Corporation (NYSE:TEX) will likely manage to improve the efficiency of its operations by finally being able to more fully integrate its pre-recession purchases , it could take a while before the return on equity improves. Ingersoll-Rand PLC (NYSE:IR) has set itself up for long-term security with the Trane purchase, but it could take many years before such a large acquisition pays for itself and starts generating profits.

The article These Equipment Firms Look Ready to Fly originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Cummins. The Motley Fool owns shares of Cummins and Terex. 

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