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Earnings estimate revisions are going up for some companies in the Industrial Products sector. This will be an area of the economy that investors will want to watch going into the new year. Stronger business logically and usually correlates with the future appreciation of a stock.
Let’s take a look at two Zacks Rank #1 (Strong Buy) industrial products stocks that investors should consider for 2023.
Starting with Belden Inc, the designer, manufacturer, and retailer of cable, connectivity, and networking products. Belden’s Wire and Cable Products Industry is in the top 1% of over 250 Zacks Industries at the moment.
Belden services a variety of markets including industrial automation, enterprise transportation, infrastructure, and consumer electronics.
Image Source: Zacks Investment Research
Earnings are now projected to rise 32% in 2022 at $6.33 per share, this is up from estimates of $6.04 a share 60 days ago. Fiscal 2023 earnings are expected to rise another 1% at $6.43 a share with estimates also trending higher over the last two months.
Sales are forecasted to rise 7% this year and drop -2% in FY23 to $2.52 billion following a tough-to-compete-with year. FY23 sales would still represent an 18% increase from pre-pandemic levels with 2019 sales at $2.13 billion.
Year to date Belden stock is up an impressive +19% to blast the S&P 500’s -17%. BDC has also beaten the Wire & Cable Products Markets +4% YTD performance. BDC's total return is +28% over the last year to also top the benchmark's -16% and its Zacks Subindustry.
Image Source: Zacks Investment Research
Trading around $78 a share, BDC trades at 12.2X forward earnings. Despite its stellar YTD performance, this is 36% beneath its decade-high of 19.1X and still below the median of 13X.
Even better, the average Zacks Price Target offers 23% upside from current levels.
Another name investors will want to pay attention to for the new year is Terex Corporation (TEX - Free Report) . Terex is part of the Manufacturing-Construction and Mining Industry which is currently in the top 6% of all Zacks Industries.
The famous and notable leader in the industry has been Caterpillar (CAT - Free Report) but Terex has a unique niche as well. Terex is a global manufacturer of aerial work platforms, materials processing machinery, and cranes. Terex’s bottom line is starting to stand out and has bounced back stronger than ever following the pandemic.
Image Source: Zacks Investment Research
Terex's growth makes the stocks worthy of consideration along with industry giants like Catepillar. Terex earnings are now projected to climb 34% in 2022 at $4.12 per share, up from estimates of $4.01 a share 90 days ago. FY23 earnings are expected to jump another 17% with estimates continuing to rise over the last quarter as well. On the top line, sales are forecasted to rise 10% this year and another 5% in FY23 to $4.53 billion.
Terex’s stock performance has illustrated the resurgence in its top and bottom lines. Over the last three years, TEX’s total return is +50% to top the S&P 500’s +32% and its peer group’s +26%. Year to date TEX is only down -2% to also beat the benchmark and its peer group’s -6%.
Image Source: Zacks Investment Research
Terex shares currently trade around $43 and appear to be on the path to retracing and perhaps eclipsing its 52-week high of $47.49 a share last January. Looking at TEX’s P/E ratio, its valuation seems to support more upside as well. TEX trades at 10.6X forward earnings which is a 23% discount from the industry average of 13.9X.
Furthermore, TEX trades well below its decade-high of 95X and beneath its median of 13.8X during this period. Terex Corporation offers a modest 1.18% dividend yield and the average Zacks Price Target suggests 7% upside from current levels which would be right around its 52-week high.
Bottom Line
With these two industrial products stocks showing the ability to fight off inflation this year, their valuation and growth appear to support more upside ahead. This is further supported by rising earnings estimate revisions as both Belden and Terex are currently benefiting from their booming industries.
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Buy These 2 Industrial Products Stocks
Earnings estimate revisions are going up for some companies in the Industrial Products sector. This will be an area of the economy that investors will want to watch going into the new year. Stronger business logically and usually correlates with the future appreciation of a stock.
Let’s take a look at two Zacks Rank #1 (Strong Buy) industrial products stocks that investors should consider for 2023.
Belden (BDC - Free Report)
Starting with Belden Inc, the designer, manufacturer, and retailer of cable, connectivity, and networking products. Belden’s Wire and Cable Products Industry is in the top 1% of over 250 Zacks Industries at the moment.
Belden services a variety of markets including industrial automation, enterprise transportation, infrastructure, and consumer electronics.
Image Source: Zacks Investment Research
Earnings are now projected to rise 32% in 2022 at $6.33 per share, this is up from estimates of $6.04 a share 60 days ago. Fiscal 2023 earnings are expected to rise another 1% at $6.43 a share with estimates also trending higher over the last two months.
Sales are forecasted to rise 7% this year and drop -2% in FY23 to $2.52 billion following a tough-to-compete-with year. FY23 sales would still represent an 18% increase from pre-pandemic levels with 2019 sales at $2.13 billion.
Year to date Belden stock is up an impressive +19% to blast the S&P 500’s -17%. BDC has also beaten the Wire & Cable Products Markets +4% YTD performance. BDC's total return is +28% over the last year to also top the benchmark's -16% and its Zacks Subindustry.
Image Source: Zacks Investment Research
Trading around $78 a share, BDC trades at 12.2X forward earnings. Despite its stellar YTD performance, this is 36% beneath its decade-high of 19.1X and still below the median of 13X.
Even better, the average Zacks Price Target offers 23% upside from current levels.
Terex (TEX - Free Report)
Another name investors will want to pay attention to for the new year is Terex Corporation (TEX - Free Report) . Terex is part of the Manufacturing-Construction and Mining Industry which is currently in the top 6% of all Zacks Industries.
The famous and notable leader in the industry has been Caterpillar (CAT - Free Report) but Terex has a unique niche as well. Terex is a global manufacturer of aerial work platforms, materials processing machinery, and cranes. Terex’s bottom line is starting to stand out and has bounced back stronger than ever following the pandemic.
Image Source: Zacks Investment Research
Terex's growth makes the stocks worthy of consideration along with industry giants like Catepillar. Terex earnings are now projected to climb 34% in 2022 at $4.12 per share, up from estimates of $4.01 a share 90 days ago. FY23 earnings are expected to jump another 17% with estimates continuing to rise over the last quarter as well. On the top line, sales are forecasted to rise 10% this year and another 5% in FY23 to $4.53 billion.
Terex’s stock performance has illustrated the resurgence in its top and bottom lines. Over the last three years, TEX’s total return is +50% to top the S&P 500’s +32% and its peer group’s +26%. Year to date TEX is only down -2% to also beat the benchmark and its peer group’s -6%.
Image Source: Zacks Investment Research
Terex shares currently trade around $43 and appear to be on the path to retracing and perhaps eclipsing its 52-week high of $47.49 a share last January. Looking at TEX’s P/E ratio, its valuation seems to support more upside as well. TEX trades at 10.6X forward earnings which is a 23% discount from the industry average of 13.9X.
Furthermore, TEX trades well below its decade-high of 95X and beneath its median of 13.8X during this period. Terex Corporation offers a modest 1.18% dividend yield and the average Zacks Price Target suggests 7% upside from current levels which would be right around its 52-week high.
Bottom Line
With these two industrial products stocks showing the ability to fight off inflation this year, their valuation and growth appear to support more upside ahead. This is further supported by rising earnings estimate revisions as both Belden and Terex are currently benefiting from their booming industries.