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Highly Ranked Stocks to Buy Among a Booming Industry

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At the moment the Zacks Instruments-Control Industry in is the top 1% of over 250 Zacks industries.

While many of these companies may not be the first names investors think of among the broader technology sector demand for their services continues to grow. 

Furthermore, now looks like an ideal time to buy several stocks in the instruments-control space as they are standing out with a Zacks Rank #1 (Strong Buy).

Badger Meter (BMI - Free Report)

Longevity regarding essential business operations that correlate to steady growth is the main reason to consider Badger Meter’s stock.  

This also reconfirms why a premium may be warranted for Badger Meter’s stock with the company providing flow measurement, control, and communication solutions to water and gas utilities, municipalities, and industrial customers worldwide.

Badger Meter’s anticipated top and bottom line expansion has led to its stock soaring +50% this year to easily top the S&P 500’s +17% and the Nasdaq’s +31%. To that point, annual earnings are now expected to leap 26% in fiscal 2023 and rise another 8% in FY24 to $3.10 per share. On the top line, total sales are forecasted to climb 20% in FY23 and rise another 6% in FY24 to $717.39 million.

Zacks Investment Research
Image Source: Zacks Investment Research

Transcat (TRNS - Free Report)

Steady but expansive growth prospects and a special niche in the Instruments-Control Industry make Transcat’s stock attractive.

Transcat distributes test and measurement instruments along with providing accredited calibration services to a variety of markets including the life sciences, pharmaceutical, and petroleum refining industry among others.

Largely outperforming the broader indexes, Transcat’s stock has soared +60% YTD with earnings projected to climb 18% in its current fiscal 2024 and jump another 16% in FY25 to $1.94 per share. Total sales are forecasted to rise 9% in FY24 and pop another 8% in FY25 to $274.36 million.

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Image Source: Zacks Investment Research

Woodward (WWD - Free Report)

Another company with a unique niche as it relates to the Zacks Instrument-Controls Industry is Woodward. As a provider of energy control and optimization solutions, Woodward provides a number of products that serve the commercial aerospace, business jet, military, and energy markets.

Woodward’s stock has risen +37% this year to also edge the broader indexes. The company’s growth trajectory points to more upside with FY23 earnings now expected to skyrocket 51% at $4.15 per share compared to $2.75 a share last year. Plus, FY24 earnings are projected to rise another 9%.

More intriguing and indicative of more short-term upside in Woodward stock is that over the last 60 days, FY23 and FY24 earnings estimates have soared 16% and 11% respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

In regards to sales, Woodward is expecting 22% growth in FY23 and another 5% growth in FY24 with projections at $3.05 billion. It’s also noteworthy that Woodward offers a modest 0.68% dividend in an industry where most companies are focused on expansive growth and don’t offer a payout.

Zacks Investment Research
Image Source: Zacks Investment Research

Takeaway 

With inflationary concerns starting to resurface, these highly-ranked Zacks Instruments-Control Industry stocks are very appealing.

There will naturally be fears that many companies could still experience stalling growth associated with broader economic headwinds but these stocks appear to be ahead of the curve attributed to their growing business industry. 


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Apple Inc. (AAPL) - free report >>

Badger Meter, Inc. (BMI) - free report >>

Transcat, Inc. (TRNS) - free report >>

Woodward, Inc. (WWD) - free report >>

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