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Quarter-End Insights

Our Outlook for Industrials Stocks

Cautious optimism continues to pervade the industrials universe.

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  • The worldwide industrial sector's slowdown continued in the fourth quarter, with challenging conditions in key geographies such as Europe and Asia mitigating surprising strength in the United States.
  • With the benefit of hindsight, the third quarter's summer swoon seems to have presented wonderful buying opportunities for high-quality industrial companies. After a sharp rebound, many valuations now look full, in our opinion.
  • Even with a more fairly valued sector, we still believe some industries within the sector offer pockets of opportunity, including automotive, transportation, and truck manufacturing.

 

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