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Chicago, IL – January 11, 2023 – Today, Zacks Investment Ideas feature highlights Crane Holdings (CR - Free Report) , Cintas Corp. (CTAS - Free Report) and W.W. Grainger Inc. (GWW - Free Report) .
3 Top Picks from a Hot Industrial Products Industry
Investors can insert themselves into favorable trends within the market by targeting sectors witnessing positive earnings estimate revisions.
That’s precisely what the Zacks Industrial Products sector has seen lately, which has pushed it up to the #1 spot out of all Zacks 16 sectors.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, further stating the importance of targeting areas that analysts have recently become bullish on.
The sector has displayed remarkable relative strength over the last three months, up nearly 20% vs. the S&P 500’s 8% gain.
Three stocks from the sector – Crane Holdings, Cintas Corp. andW.W. Grainger Inc. – could all be considerations for those looking to tap into the relative strength.
Let’s take a closer look at each one.
Crane Holdings
Crane Holdings is a diversified manufacturer of engineered industrial products with four business segments: Aerospace and Electronics, Process Flow Technologies, Payment and Merchandising Technology, and Engineered Materials. CR sports a Zacks Rank #2 (Buy).
Many stocks in the Zacks Industrial Products sector pay dividends, and Crane is no different; the company’s annual dividend currently yields 1.8%, a few ticks higher than its Zacks sector average.
In addition, CR’s valuation multiples don’t appear stretched by any means, further reinforced by its Style Score of a “B” for Value. The company’s forward earnings multiple stands at 12.9X, nicely beneath its 14.3X five-year median.
And for the cherry on top, CR has consistently exceeded quarterly estimates, chaining together seven consecutive quarters of exceeding both earnings and revenue expectations.
W.W. Grainger Inc.
W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair, and operating (MRO) products and services. The company boasts the highly-coveted Zacks Rank #1 (Strong Buy).
It’s hard to ignore the company’s growth trajectory, with estimates calling for nearly 50% earnings growth on the back of a 16% Y/Y revenue increase in its current fiscal year (FY22).
GWW carries a Style Score of a “B” for Growth.
The company does pay a dividend, currently yielding 1.2% and modestly below its Zacks sector average.
On the flip side, however, GWW has shown a commitment to increasingly rewarding its shareholders, growing its payout by more than 6% over the last five years.
Thanks to a strong Q3, GWW upped its current year (FY22) guidance, forecasting net sales in a range of $15.1 billion - $15.2 billion (previously $15 billion - $15.2 billion). Further, the company expects EPS of $29.10 - $29.70 (previously $27.25 - $28.75).
Cintas Corp.
With products and services that include uniforms, floor care, restroom supplies, first aid, and safety products, Cintas takes care of many business needs. Like the stocks above, the company has seen its earnings outlook drift higher as of late, landing it into a Zacks Rank #2 (Buy).
While the company’s annual dividend yield of 1% is notably lower than its Zacks sector average, it’s worth noting that Cintas hiked its quarterly dividend by 21% just last July.
And Cintas is no stranger to consistent growth, with estimates calling for 12% earnings growth in its current fiscal year (FY23) and a further 10% in FY24.
Bottom Line
Relative strength focuses on stocks or other assets that have performed well relative to the market or a relevant benchmark.
And all three stocks above – Crane, Cintas and W.W. Grainger – have displayed precisely that, going on strong runs over the last three months on the back of an improved earnings outlook.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Crane Holdings, Cintas and W.W. Grainger
For Immediate Release
Chicago, IL – January 11, 2023 – Today, Zacks Investment Ideas feature highlights Crane Holdings (CR - Free Report) , Cintas Corp. (CTAS - Free Report) and W.W. Grainger Inc. (GWW - Free Report) .
3 Top Picks from a Hot Industrial Products Industry
Investors can insert themselves into favorable trends within the market by targeting sectors witnessing positive earnings estimate revisions.
That’s precisely what the Zacks Industrial Products sector has seen lately, which has pushed it up to the #1 spot out of all Zacks 16 sectors.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, further stating the importance of targeting areas that analysts have recently become bullish on.
The sector has displayed remarkable relative strength over the last three months, up nearly 20% vs. the S&P 500’s 8% gain.
Three stocks from the sector – Crane Holdings, Cintas Corp. andW.W. Grainger Inc. – could all be considerations for those looking to tap into the relative strength.
Let’s take a closer look at each one.
Crane Holdings
Crane Holdings is a diversified manufacturer of engineered industrial products with four business segments: Aerospace and Electronics, Process Flow Technologies, Payment and Merchandising Technology, and Engineered Materials. CR sports a Zacks Rank #2 (Buy).
Many stocks in the Zacks Industrial Products sector pay dividends, and Crane is no different; the company’s annual dividend currently yields 1.8%, a few ticks higher than its Zacks sector average.
In addition, CR’s valuation multiples don’t appear stretched by any means, further reinforced by its Style Score of a “B” for Value. The company’s forward earnings multiple stands at 12.9X, nicely beneath its 14.3X five-year median.
And for the cherry on top, CR has consistently exceeded quarterly estimates, chaining together seven consecutive quarters of exceeding both earnings and revenue expectations.
W.W. Grainger Inc.
W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair, and operating (MRO) products and services. The company boasts the highly-coveted Zacks Rank #1 (Strong Buy).
It’s hard to ignore the company’s growth trajectory, with estimates calling for nearly 50% earnings growth on the back of a 16% Y/Y revenue increase in its current fiscal year (FY22).
GWW carries a Style Score of a “B” for Growth.
The company does pay a dividend, currently yielding 1.2% and modestly below its Zacks sector average.
On the flip side, however, GWW has shown a commitment to increasingly rewarding its shareholders, growing its payout by more than 6% over the last five years.
Thanks to a strong Q3, GWW upped its current year (FY22) guidance, forecasting net sales in a range of $15.1 billion - $15.2 billion (previously $15 billion - $15.2 billion). Further, the company expects EPS of $29.10 - $29.70 (previously $27.25 - $28.75).
Cintas Corp.
With products and services that include uniforms, floor care, restroom supplies, first aid, and safety products, Cintas takes care of many business needs. Like the stocks above, the company has seen its earnings outlook drift higher as of late, landing it into a Zacks Rank #2 (Buy).
While the company’s annual dividend yield of 1% is notably lower than its Zacks sector average, it’s worth noting that Cintas hiked its quarterly dividend by 21% just last July.
And Cintas is no stranger to consistent growth, with estimates calling for 12% earnings growth in its current fiscal year (FY23) and a further 10% in FY24.
Bottom Line
Relative strength focuses on stocks or other assets that have performed well relative to the market or a relevant benchmark.
And all three stocks above – Crane, Cintas and W.W. Grainger – have displayed precisely that, going on strong runs over the last three months on the back of an improved earnings outlook.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.