Saturday, July 22, 2017

FedEx Earnings Review

The fourth-quarter results from FedEx Corporation (NYSE:FDX) were broadly positive, but the best word to describe them is "noisy." The headline numbers were impacted by a combination of issues including the integration of TNT Express, pricing actions taken to improve yield, and network expansion costs. There is a lot going on in the earnings report; here are the key points

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3 Stocks Up Big in 2017

Machine-vision company Cognex Corporation (NASDAQ:CGNX), roofing and insulation company Owens Corning (NYSE:OC), and industrial tools company Stanley Black & Decker (NYSE:SWK) have all seen sharp increases in their stock prices in 2017. So is now the time to cash in some gains? Let's look at what's happened with all three and consider why there may be more to come from them in 2017.

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Dover Corp Plans to Grow Earnings

Oil and gas-focused industrial stocks like Dover Corp (NYSE:DOV) have seen an uptick in prospects in 2017 with the recovery in energy capital spending, and Dover has raised organic revenue guidance in its three other operating segments. The company is having a strong 2017, and its three-year outlook to 2019 -- provided at a recent investor meeting -- suggests that the stock could have further upside potential. Let's take a look at what investors can expect.

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Thursday, July 13, 2017

Why Ingersoll-Rand PLC Stock is a Buy

Heating, ventilation, and air conditioning (HVAC) company Ingersoll-Rand PLC (NYSE:IR) is the most compelling stock in the electrical equipment sector, offering investors an attractive mix of long-term growth, margin expansion, and free cash flow generation. Let's take a closer look at why Ingersoll-Rand might be a useful addition to your portfolio.

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Electrical Equipment Stocks With Good Dividends

So you want to invest in the electrical equipment sector and you also want a healthy dividend to go with it. In that case, here's a rundown of the leading players in the industry and which ones are of particular relevance to income-seeking investors.

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Tuesday, July 11, 2017

Agricultural Equipment Stocks to Buy

It's been a difficult five years for the agricultural-equipment sector as record harvests have led to falling crop prices and a lack of willingness among farmers to buy new machinery. However, the uptick in key crop prices such as corn, wheat, and soybeans in 2017 is encouraging investors to believe a turnaround in fortunes is about to take place. In this line of thought, let's look at the three best stocks in the sector, namely Deere & Company (NYSE:DE)AGCO Corporation (NYSE:AGCO) and CNH Industrial NV (NYSE:CNHI).

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Rockwell Automation Stock Carries a Premium

On both an absolute and relative basis, Rockwell Automation (NYSE:ROK) stock looks expensive. As you can see below, its current P/E ratio of around 27 times earnings means it commands a premium to the electrical equipment sector.
Time to hit the sell button? Not so fast -- here are five reasons Rockwell Automation's premium rating is deserved, and why the stock might even be a good value option.

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Thursday, June 29, 2017

3M Co Stock Analysis

The first-quarter proved to be a good one for the industrial sector, and particularly so for multi-industry companies like 3M Co (NYSE:MMM) and Illinois Tool Works (NYSE:ITW). Both companies reported strong first quarters and raised their full-year revenue and earnings guidance. That said, they both currently trade on valuations that look expensive compared to previous years. . Let's take a look at the investment case for and against buying stock in 3M Co.

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Tuesday, June 27, 2017

Key Takeaways From General Electric Company Presentations

It hasn't been a great year for shareholders of General Electric (NYSE:GE), who have watched as the stock hassignificantly underperformed the S&P 500. Now, CEO Jeff Immelt is under pressure to reassure the investment community that the company is back on track toward its earnings and operational goals, and he sought to do just that with his presentation at the Electrical Products Group conference last week. Let's take a closer look at the key takeaways from the presentation.

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Where is UPS Going in 2017?

It's no secret that United Parcel Service, Inc (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are key beneficiaries of the e-commerce revolution. While that's good news from a revenue growth perspective, it's not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.
In this context, let's take a look at what's going on at UPS and how it affects the investment proposition. 

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China in 2017

There is no shortage of economists predicting China GDP growth rates for 2017 from a top-down perspective, but what about looking at matters from a bottom-up approach? In that context, here's what leading industrial companies said about the first quarter and what to expect going forward.

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Thursday, June 15, 2017

General Electric Company Power Segment Analysis

On General Electric Company's (NYSE:GE) last earnings call, Citigroup analyst Andrew Kaplowitz raised a question attesting to fears that GE's power segment could be facing structural issues -- rather than "transient and cyclical" ones. It's actually a key consideration, because power is GE's historical strength, and gas turbines are still its single most important product. Let's take a look at the arguments for and against.

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AgroFresh Solutions Earnings Analysis

AgroFresh Solutions, Inc. , a company offering freshness solutions to growers of produce, pleased investors by reporting progress on its plans for 2017. Not only were its headline numbers better, but management also outlined improvements made from the implementation of its growth strategy. Let's take a closer look at the details from the quarter.

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Tuesday, June 6, 2017

BorgWarner Earnings Analysis

The auto industry is one of the most-discussed sectors of the industrial economy in 2017, and investors tend to watch the earnings results of automotive powertrain supplier BorgWarner Inc. (NYSE:BWA) for clues on where carmakers are heading. Let's take a look a closer look at the earnings

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Jones Lang LaSalle Earnings Analysis

Commercial property services company Jones Lang LaSalle Inc (NYSE:JLL) produced a solid set of first-quarter results on Friday and affirmed its full-year guidance. That said, investors will be wondering just how a 21% increase in fee revenue translated into a 12.9% drop in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), let alone a 45.1% decline in adjusted diluted EPS. Wait no further to find out.

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Sunday, June 4, 2017

Key Takeaways From United Technologies Earnings

One of the advantages of owning a stock trading at a discount to its peers comes from the notion that all the company has to do is report an OK-looking set of results and investors are likely to reward it. In this context, I would argue that although United Technologies Corporation's (NYSE:UTX) recent first-quarter results were good enough to satisfy investors, they contained a mix of positives and negatives. That said, here are the key takeaways from the earnings so you can make up your own mind.

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Illinois Tool Works Earnings Analysis

In general, it's been a good reporting season for industrial companies, and the results from diversified industrials such as Illinois Tool Works Inc. (NYSE:ITW) and 3M Co.(NYSE:MMM) stand out in particular. Both companies raised their full-year earnings and organic revenue forecasts and served notice of improving end markets. That said, both stocks now trade at valuations that are definitely not cheap on a historical basis.
Let's look at the key takeaways from Illinois Tool Works' recent earnings report and determine whether there's enough here to take the stock higher in 2017.

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Wednesday, May 31, 2017

Roper Technologies

The general theme from industrial companies in the current earnings season has been the return to growth of capital spending by energy and heavy industries, and the latest earnings report from Roper Technologies  confirmed the trend. However, the good news didn't stop there: Management unveiled some excellent operational performance in the quarter and its other end markets reported good conditions. Let's take a closer look at a strong quarter for the company.

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Tuesday, May 30, 2017

Why WESCO International Stock Price Fell in April

The stock price of industrial distribution company WESCO International (NYSE:WCC) fell around 12% in April driven by a disappointing set of first-quarter earnings. As you can see in the chart below it's not been a happy time for investors in industrial wholesale and distribution stocks. Fastenal Company (NASDAQ:FAST) and MSC Industrial Co Inc. (NYSE:MSM)have also reported disappointing results this earnings season

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Danaher Corporation Earnings Analysis

As you look across the industrials sector, Danaher Corporation (NYSE:DHR) jumps out, for two reasons. First, Danaher isn't your typical kind of cyclical industrial company. In fact, its collection of medical-focused and environmental businesses give it secular growth credentials, meaning its earnings can grow relatively uncorrelated to the ups and downs of the economy. Second, there's its valuation premium

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