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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.

Eric Landry does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.