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Quarter-End Insights

Our Outlook for Industrials Stocks

The current industrial slowdown could persist for several additional quarters, but we think pockets of value exist.

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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 shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.