Industrials Stocks to Watch: One Diamond Amidst the Dross
The industrials sector has underperformed the market over the past six months due to volatile macroeconomic factors that influence capital spending. Despite this, some stocks in the industry may be worth investing in for long-term growth.
Otis Worldwide (OTIS) is one such stock that is credited with inventing the first hydraulic passenger elevator. However, its organic revenue growth has fallen short of benchmarks over the past two years, and its projected sales growth of 4.3% suggests sluggish demand.
Another stock to steer clear of is 3M (MMM), a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods. Its organic sales performance has also been lackluster over the past two years, and its estimated sales growth of 4.9% implies weaker demand.
On the other hand, MYR Group (MYRG), a specialty contractor in the electrical construction industry, is an attractive stock for long-term investors. Its exciting sales outlook calls for 19.4% growth, an acceleration from its two-year trend, and its market-beating returns on capital illustrate that management has a knack for investing in profitable ventures.