These Top Industrial Stocks Are Trending In The Stock Market Today
Industrial stocks appear to be in focus right now amidst the shifting trends in the broader market. Evidently, investors appear to be rotating out of large-cap tech stocks that flourished throughout 2020 into reopening plays. This includes cyclical stocks whose core businesses tend to follow trends in the economy. By extension, industrial stocks would fall in this zone, gaining momentum with improving pandemic conditions. Notably, Fundstrat’s Tom Lee said that cyclical stocks will likely “become the new growth stocks” given our current world environment. With growing investor sentiment towards industrial stocks, now could be a good time to consider investing in some.
After all, industrial giants such as Boeing (NYSE: BA) and Caterpillar Inc. (NYSE: CAT) seem to be on the uptrend now. On one hand, Boeing is making waves now as the travel industry begins to ramp up operations. This appears to be the case with Southwest Airlines (NYSE: LUV) placing an order for 100 Boeing 737 MAX jets. On the other hand, construction machinery developer, Caterpillar, has already recovered well past pre-pandemic levels.
As it stands, both companies’ shares have more than doubled in value since early April 2020. If that wasn’t enough, there is also the factor of President Joe Biden’s upcoming infrastructure plan for the nation. With an estimated $3 trillion coming down the pipeline, industrial stocks could be looking at major tailwinds ahead. Having said all that, here are four trending industrial stocks to watch right now.
Industrial Stocks To Buy [Or Avoid] In April
Starting us off today is Trimble Inc. In brief, Trimble identifies as a hardware, software, and services tech company. The company’s core end markets include the agriculture, construction, natural resources, and utility industries, among other industrial sectors. Particularly, Trimble offers positioning, modeling, connectivity, and data analytics solutions to its clients. According to the company, these services help improve its clients’ productivity, quality, safety, and sustainability overall. In theory, this would make TRMB stock a key industrial play seeing as it empowers industrial clients. Similarly, TRMB stock is looking at gains of over 130% in the past year.
Source: TD Ameritrade TOS
Regarding its operations, Trimble does not appear to be slowing down anytime soon. Last Thursday, the company announced massive expansions for its connected construction and 5G portfolios respectively. Firstly, Trimble now offers cloud-based estimating and budget management software for civil construction professionals. Through this Software-as-a-Service, Trimble enables clients to effectively manage budgets for civil construction projects. Second, the company also revealed its first dual-frequency timing module. According to Trimble, this module provides unmatched network optimization for 5G network operators.
On top of all that, the company also announced a collaboration with autonomous vehicle research firm VSI Labs last Friday. In this partnership, Trimble will be employing its precise-positioning and orientation tech. With a diverse portfolio catering to numerous growing industries now, would you consider TRMB stock a buy?
Kratos Defense & Security Solutions
Another industrial player to know now would be Kratos Defense & Security Solutions Inc. (KTOS). For some context, the company specializes in directed-energy weapons, unmanned systems, satellite communications, along with other defensive engineering services. Not to mention, KTOS’s key clients include U.S. National Security-related customers, allies, and commercial enterprises. Given the complexity and diversity in its portfolio, KTOS stock could be solid means of entry into the defense industry.
Source: TD Ameritrade TOS
At the very least, ARK Invests’ Cathie Wood appears to think so. Namely, Wood’s investment firm will debut its space exploration exchange-traded fund (ETF) today. Among the top holdings is KTOS stock. As a result, it would not surprise me to see investors quickly following in Wood’s steps. For one thing, ARK Invests’ active funds posted massive gains throughout 2020.
Big investor news aside, KTOS has also been gaining recognition in the civil engineering field as well. To point out, the company’s Autonomous Truck-Mounted Attenuator (ATMA) was hailed as an “Infrastructure Gamechanger” by the American Society of Civil Engineers (ASCE) yesterday. This high praise from the ASCE is because of how the company’s ATMA works. Basically, the ATMA shields construction workers during commercial highway maintenance work. This removes the need for a worker to actively drive non-autonomous TMA’s and potentially saves lives. With the company firing on all cylinders, will you be buying KTOS stock?
Virgin Galactic Holdings Inc.
Next, we will be looking at spaceflight company Virgin Galactic. Primarily, the company focuses on developing commercial spacecraft and aims to provide suborbital spaceflights for space tourists. For the most part, Virgin Galactic is one of the top names in the space tourism field. Other notable names in the field include Elon Musk’s SpaceX and Boeing. With all the buzz around tourism now, this would be a new frontier to consider. More importantly, investors could be watching SPCE stock now in anticipation of its latest spaceship rollout.
Source: TD Ameritrade TOS
Today, Virgin Galactic unveiled the VSS Imagine, its latest spaceship. The company revealed that Imagine will begin ground testing and glide flights later this summer in New Mexico. Additionally, Virgin Galactic also reiterated its goal of flying 400 flights per year, per spaceport once fully operational. If anything, this rollout marks another key step towards the company’s goal of facilitating commercial space travel.
Aside from that, CEO Michael Colglazier also mentioned that the company is hard at work on its new work-horse Delta class of spaceships. In terms of when commercial operations can begin, Virgin Galactic is currently aiming for an early 2022 rollout. Time will tell if SPCE stock still has room to grow moving forward. Would you consider adding it to your portfolio now?
L3Harris Technologies Inc.
Topping off our list is defense contractor and IT service provider, L3Harris. Broadly, the company is a global aerospace and defense tech innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. In terms of scope, L3Harris provides advanced defense and commercial tech, across air, land, sea, space, and cyber domains. Given the ever-growing cyber threats in our world today, this would be a good business to be in. As such, should you be watching LHX stock?
Source: TD Ameritrade TOS
Well, just last week, the company landed a massive contract from aerospace company Lockheed Martin (NYSE: LMT). By the terms of the contract, L3Harris will provide advanced electronic warfare systems for Lockheed’s F-16 fighter aircraft. In detail, the company’s tech will protect said fighter jets against emerging radar and electronic threats.
According to L3Harris, its proprietary tech enables the F-16 to be “one of the most effective combat aircraft in the world”. No doubt, L3Harris’ 60 years of experience in providing electronic warfare solutions would play a key role here. To this end, would you say LHX stock is worth investing in now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.