In the difficult year of 2022, despite the pressure of inflation, rising interest rates and supply chain disruptions in the industrial sector, investors have not lost hope in the shares of successful industrial companies. And for good reason, as it turns out, along with the weakened tourism sector, shares of defense and aviation industries, as well as electric car manufacturers maintained and increased their growth.
Here are the top 7 industrial stocks to buy in 2022.
Boeing Co. (BA)
Market capitalization : $100.26 billion.
Boeing has been the largest aerospace company in the U.S. for many decades and is the country’s largest exporter and the largest employer in the Seattle Industrial District and the Northwest U.S. by employment. It’s headquartered in Chicago.
It is involved in commercial aircraft manufacturing (BSA), defense, space and security (BDS), global services (BGS) and Boeing Capital (BCC).
The company designs, manufactures and modifies commercial aircraft, manned and unmanned military aircraft and weapon systems for surveillance and strike.
It is one of the top three manufacturers of weapons and military equipment in terms of volume of orders per year.
BGS’s Services Segment provides services to commercial and defense customers. BCC organizes and facilitates financial solutions for its customers. Although Boeing’s business has suffered because of the flight ban, analysts expect the company to keep the stock attractive to investors.
As of this writing, Boeing stock is trading at $169.07, The stock is up 22.78% in 1 month. The range for the year is $113.02 – $241.1
Illinois Tool Works Inc. (ITW)
Market capitalization – $63.25 billion.
Illinois Tool Works manufactures industrial products and equipment. The company’s products make business less expensive and more efficient. The company can be called a diversified manufacturer. Company segments: automotive manufacturers, construction materials, food processing equipment, fluids and polymers, welding, electronics and measuring equipment.
The automotive manufacturers have an OEM division dedicated to the production of components and fasteners for the automotive industry.
Test & Measurement and Electronics segment provides software support for testing and measuring materials, gasses, liquids and constructions. It also provides test and measurement equipment and consumables.
Construction Products manufactures construction fastening systems.
Specialty Products manufactures beverage packaging consumables and equipment, labeling equipment and supplies, and fasteners and components.
The Polymers & Fluids segment manufactures adhesives, sealants, cleaning and hygiene supplies, lubricants, service fluids, and polymers for automotive appearance.
The Welding segment produces all arc welding equipment, accessories and consumables for a wide range of industrial and commercial applications.
Diverse manufacturing segments allow the company to diversify. Illinois Tool Works’ patents protect it from competition and its products are priced to stay within margins.
Illinois Tool Works has a strong buy recommendation, with shares trading at $207.35 .
The range for the year is $173.52 to $249.81
Emerson Electric Co.
Market capitalization – $52.08 billion
Another diversified industrial technology company. The company is a leader in various product categories in the $214 billion industrial automation market.
Ranked among the top 500 companies in the world. Combines technology and engineering across many industries and serves commercial and consumer markets with a variety of technology solutions. The company operates 235 manufacturing facilities.
The company’s commercial and residential segments consist of Automation Solutions and Climate Technologies and Tools & Home Products. Heating air conditioning and refrigeration technologies to protect food quality. Manufacturing Tools & Home Products Solutions.
The Automation Solutions segment manufactures measuring and analytical instruments, industrial fittings and equipment, software and process control systems.
Analysts advise investors to choose automation as a segment to invest in in order to generate income in the long term.
The company has a buy recommendation, shares are trading at $89.34.
The range for the year: $76.16 to $105.99
Cummins Inc. (CMI)
Market capitalization : $29.89 billion.
Cummins manufactures truck engines, standby power equipment and industrial filters.
The company is a supplier of engine braking, cylinder deactivation, starting and stopping technology and temperature control technology.
The company not only designs and manufactures but also services diesel, gas, electric and hybrid power units.
The engine segment includes gas, hybrid engines.
The distribution segment consists of sales and support of a range of products and services such as power generation systems, large and medium power engines.
The Components segment manufactures aftertreatment systems, turbochargers, filtration products, electronics and fuel systems.
The New Power segment manufactures and sells hydrogen .
The Power Systems segment consists of industrial and generator technology and electric utilities.
Analysts consider Cummins one of the highest quality investments in the industrial sector.
Analyst recommendations: buy, at the current share price of $217.84 apiece.
The range for the year is $184.28 to $247.48
TransDigm Group Inc. (TDG)
Market capitalization : $33.73 billion
TransDigm designs and manufactures aircraft parts. The Power & Control segment designs and manufactures systems and components that power and control aircraft power using electronic, hydraulic, power and mechanical motion control technology.
The Airframe segment designs and manufactures products for non-aviation markets. These are belts and safety devices for ground transport.
Analysts believe that the company is able to maintain its value even in an inflationary environment, because it acquires companies that produce their own aeronautical products. Thus, it has a strategic plan to be the sole producer of many products, and thus to keep the financial leverage in its hands.
The company has a status : a strong buy, with a share price of $630.
Range for the year : $500 – $686
Eli Lilly (LLY)
Market capitalization: $309.03 billion.
Eli Lilly and Company is a pharmaceutical company. develops, manufactures pharmaceutical products worldwide.
Diabetes drugs: Baqsimi, Basaglar, Humalog, Humulin, Jardiance, Luumjev, Trajenta and Trulicity.
Oncological drugs: Alimta, Ciramza, Erbitux, Retevmo, Tyvit and Verzenio. The company also produces immunological and neurobiological drugs. Drugs are manufactured in eight countries. The products are sold in about 120 countries.
For long-term investors in industrial companies, the company is an excellent investment also because its shares are resistant to market downturns.
Tirzepatide, Eli Lilly’s type 2 diabetes drug sold under the Mounjaro brand name, is one of the key drugs that have provided the company with good earnings growth.
Consensus – Analyst Rating: Strong Buy, at $324.15 per share.
Range for the year: $220.20 – $335.33
T-Mobile US (TMUS)
Market capitalization: $178.60 billion.
T- Mobile US is a provider of mobile communications, data and messaging services under the T-Mobile and Metro by T-Mobile brands in the United States, Puerto Rico and the U.S. Virgin Islands.
The company uses its 4G long-term development network and 5G fifth-generation technology network. It also has a wireless manufacturing segment : phones, tablets and accessories for sale.The main customer service plan is the Magenta subscription plan, which includes unlimited talk, messaging and access to 5G at no additional cost.
T-Mobile US is the third largest telecommunications company in the U.S. in terms of market capitalization, but analysts believe it is still the best for investors. Because the stock has a history of steady growth and also because the company has a $60 billion capital return program on the horizon, as respected analysts have said.
In addition, despite inflation, TMUS is not raising prime rates because it does not need to, unlike rivals AT&T and Verizon. This significantly enhances the company’s competitiveness with the high rate of inflation today.
Analysts at various publications are predicting a rise in the stock price of between 21.36 and 27.4% over the next 12 months. which gives the consensus status as a Strong Buy.
The stock price at the time of writing is $143.79
The range for the year is $101.51 to $146.92
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