Industrials has outperformed despite signs of an economic slowdown and fears over tariffs.
The stocks in this sector look fairly valued, and tariffs seem to be only a minor threat.
Plus, five takeaways from this year's Electrical Products Group Conference.
Logistics also looks promising.
Heavy equipment firms and industrial distributors look compelling as the market worries about sanctions and the prospect of a slowing economy.
We've trimmed our near-term growth expectations for international operations and moderated our margin improvement expectations for Express.
Margins should improve thanks to additional capacity and continued acquisition integration during the season of robust freight and parcel demand.
Core demand remains strong, and tariffs are a short-term headwind that will eventually wane.
We're maintaining our fair value estimate and narrow economic moat rating for the firm.
The improvement in the wide-moat railroad's operating ratio is impressive.