Our Outlook for Industrials Stocks
The current industrial slowdown could persist for several additional quarters, but we think pockets of value exist.
Quarter-End Insights
Mentioned: Emerson Electric Co (EMR)
, Raytheon Technologies Corp (RTX)
, Expeditors International of Washington Inc (EXPD)
, 3M Co (MMM)
, United Parcel Service Inc (UPS)
, Goodrich Corporation (GR)
, General Dynamics Corp (GD)
, Tyco International PLC (TYC)
, Deere & Co (DE)
, Rockwell Automation Inc (ROK)
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- The industrial slowdown we warned about in our second-quarter outlook continued in the third, with several leading indicators worsening across the world.
- Many industrial companies remain cautiously optimistic as we write, however, highlighting strong order growth, solid backlogs, and healthy balance sheets. Several firms have also turned to major share-buyback programs following the recent market sell-off.
- We think several moat-worthy industrial companies now feature compelling valuations for patient, long-term investors. However, the conditions might remain difficult for some time, and it's anybody's guess as to what share prices do in the short term.
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Eric Landry does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.