The Machinery industry, which is broadly grouped under the industrial products sector (one of the 16 broad Zacks sectors), had logged growth of 28.5% in first-quarter 2017. For second-quarter 2017, the sector is expected to deliver growth of 14.2% in earnings on the back of 12.9% increase in revenues. (Read more: Four Takeaways from the Q2 Earnings Season)
Looking at the broader picture, of the 97 S&P 500 members that have reported across all sectors, constituting 28.1% of the Index’s total market capitalization, earnings has gone up 8.4% for the second quarter. Considering all the companies that are yet to report, the S&P 500 is expected to register 8.6% growth in the quarter.
Industrial production is one of the leading economic indicators for the industrial stocks. For first-quarter 2017, industrial production – a measure of output at factories, mines and utilities, rose at an annual rate of 1.5 %. The momentum continues in the second quarter with U.S. industrial production logging growth of 0.8% in April compared with March, followed by 0.1% in May. Industrial production rose 0.4% in June, marking its fifth consecutive monthly increase. For the second quarter as a whole, industrial production rose at an annual rate of 4.7%, driven by strong increases in mining and utilities.
It will be interesting to see how some of the machinery stocks fare when they release second-quarter 2017 numbers on Jul 25. Apart from beats and misses, focus will also be on their outlook.
Being the world's largest manufacturer of construction and mining equipment Caterpillar, Inc. (CAT - Free Report) , is one heavyweight that hogs the limelight in the industrial product sector. Caterpillar has begun 2017 on a positive note, delivering year-over-year improvement in both the top line and bottom line for the first time in 10 quarters. The better-than-expected results came on the back of its incessant efforts to cut down costs to counter the impact of low-end user demand across many of its businesses. Thus, all eyes will be on the behemoth whether it can repeat the feat when it reports earnings before the opening bell.
Caterpillar has an impressive earnings surprise history beating estimates in the trailing four quarters. The company has a positive average surprise of 40.25%.
Caterpillar, Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The Machinery industry, which is broadly grouped under the industrial products sector (one of the 16 broad Zacks sectors), had logged growth of 28.5% in first-quarter 2017. For second-quarter 2017, the sector is expected to deliver growth of 14.2% in earnings on the back of 12.9% increase in revenues. (Read more: Four Takeaways from the Q2 Earnings Season)
Looking at the broader picture, of the 97 S&P 500 members that have reported across all sectors, constituting 28.1% of the Index’s total market capitalization, earnings has gone up 8.4% for the second quarter. Considering all the companies that are yet to report, the S&P 500 is expected to register 8.6% growth in the quarter.
Industrial production is one of the leading economic indicators for the industrial stocks. For first-quarter 2017, industrial production – a measure of output at factories, mines and utilities, rose at an annual rate of 1.5 %. The momentum continues in the second quarter with U.S. industrial production logging growth of 0.8% in April compared with March, followed by 0.1% in May. Industrial production rose 0.4% in June, marking its fifth consecutive monthly increase. For the second quarter as a whole, industrial production rose at an annual rate of 4.7%, driven by strong increases in mining and utilities.
It will be interesting to see how some of the machinery stocks fare when they release second-quarter 2017 numbers on Jul 25. Apart from beats and misses, focus will also be on their outlook.
Being the world's largest manufacturer of construction and mining equipment Caterpillar, Inc. (CAT - Free Report) , is one heavyweight that hogs the limelight in the industrial product sector. Caterpillar has begun 2017 on a positive note, delivering year-over-year improvement in both the top line and bottom line for the first time in 10 quarters. The better-than-expected results came on the back of its incessant efforts to cut down costs to counter the impact of low-end user demand across many of its businesses. Thus, all eyes will be on the behemoth whether it can repeat the feat when it reports earnings before the opening bell.
Caterpillar has an impressive earnings surprise history beating estimates in the trailing four quarters. The company has a positive average surprise of 40.25%.
Caterpillar, Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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