Industrial stocks for your January 2024 watchlist.
The industrial sector encompasses a diverse range of companies involved in the production and distribution of goods used in construction, manufacturing, and infrastructure. This sector includes machinery, aerospace, defense, construction, and engineering firms. Companies in the industrial sector are integral to the economy, often seen as a barometer of economic health. They are sensitive to business cycles, with their performance closely tied to industrial and economic activity.
Investing in industrial stocks can offer several advantages. These stocks often perform well during periods of economic growth. They benefit from increased demand for industrial products and services. Additionally, some industrial companies provide consistent dividends, appealing to income-focused investors. However, there are disadvantages too. The sector is susceptible to economic downturns. This can lead to decreased demand for industrial goods and services. Additionally, these stocks can be impacted by factors like global trade policies and commodity prices.
For investors, a key consideration is the cyclical nature of industrial stocks. While they can provide growth during economic expansions, they can also be more volatile during recessions. An informed approach is essential. Investors should consider the broader economic landscape and specific industry trends. Considering all of this, here are three trending industrial stocks to keep an eye on in the stock market right now.
Industrial Stocks To Buy [Or Avoid] In 2024
FedEx (FDX Stock)
Leading off, FedEx Corporation (FDX) is an American multinational courier delivery services company. FedEx provides a broad portfolio of transportation, e-commerce, and business services.
In December, FedEx reported its second quarter 2023 financial results. Diving in, the company announced earnings of $3.99 per share, along with revenue of $22.17 billion for Q2 2023. For context, this is against Wall Street’s estimates for the quarter which were an EPS of $4.14 per share, with revenue estimates of $22.41 billion.
In the last month of trading, shares of FedEx stock have retreated by 5.34%. Meanwhile, during Tuesday’s mid-morning trading session, FDX stock is trading modestly lower by 0.72% at $241.16 a share.
Waste Management (WM Stock)
Next, Waste Management Inc. (WM) is North America’s leading provider of integrated environmental solutions. The company offers services that include waste collection, transfer, disposal, recycling, and resource recovery.
Last month, Waste Management announced financial decisions approved by its Board of Directors. The company revealed a 7.1% increase in its quarterly dividend rate for 2024, raising it from $0.70 to $0.75 per share. This adjustment brings the annual dividend rate from $2.80 to $3.00 per share, continuing a trend of dividend increases for the twenty-first consecutive year. Additionally, Waste Management received approval to implement a new share repurchase program. This program authorizes the repurchase of up to $1.5 billion of the company’s common stock, replacing the remaining authority from a similar $1.5 billion program announced in 2022.
Looking at the last month of trading, shares of WM stock have increased by 3.34%. While, during Tuesday’s late morning trading session, Waste Management’s stock is trading green on the day so far by 0.63% at $180.22 a share.
3M Company (MMM Stock)
Last but not least, 3M Company (MMM) is a diversified technology company. 3M has a global presence in industries such as health care, consumer goods, automotive, and electronics. The company produces thousands of innovative products, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, and dental and orthodontic products.
In December, 3M announced the sale of its fifty-percent equity stake in Combi Packaging Systems, LLC (Combi) to SIAT Group, an H.I.G. Capital portfolio company. This transaction involves Combi, a U.S.-based company known for producing and distributing end-of-line packaging machinery and spare parts, as well as providing services and warehousing for 3M-Matic™ Case Sealing equipment in North America. Despite the sale, 3M will continue to sell 3M-Matic products, retaining the brand, technologies, and portfolio.
In the last month of trading, shares of MMM stock have advanced by 6.23%. Moreover, during Tuesday’s late morning trading session, 3M stock is trading slightly higher on the day thus far by 0.51% at $109.88 a share.
—
Originally Posted January 2, 2024 – 3 Industrial Stocks To Watch In January 2024
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from StockMarket.com and is being posted with its permission. The views expressed in this material are solely those of the author and/or StockMarket.com and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
