Today, we have picked 12 industrial stocks which appear to be undervalued offering an attractive investment opportunity. These stocks are expected to register strong earnings growth during 2014. Additionally, these stocks are currently trading at relatively low forward Price-to-Earning (P/E) and Price to Book (P/B) ratios with relatively low PEG ratio, which are considered attractive investment metrics from a valuation standpoint. Moreover, these stocks provide high return on equity (ROE). We note that some of these stocks have recorded gains during the past month with average traded volume of above 100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
EPS Growth (2013) |
EPS Growth (2014E) |
Current PE Ratio |
Forward PE Ratio |
P/B Ratio |
ROE |
|
Huntington Ingalls Industries Inc |
NYSE |
HII |
4.5 |
92.29 |
352,081 |
-10.9% |
77.4% |
63.5% |
16.8 |
12.4 |
2.9 |
27.1% |
|
Linamar Corp |
TSX |
LNR |
4.1 |
62.68 |
236,373 |
13.9% |
57.1% |
28.1% |
16.5 |
14.7 |
2.8 |
20.2% |
|
Littelfuse Inc |
NASDAQ |
LFUS |
2.0 |
90.41 |
116,974 |
-8.2% |
15.4% |
12.4% |
19.4 |
18.0 |
2.9 |
15.7% |
|
CAE Inc |
TSX |
CAE |
3.7 |
14.00 |
974,983 |
-5.8% |
37.7% |
11.4% |
19.7 |
17.2 |
2.6 |
14.9% |
|
Ryder System Inc |
NYSE |
R |
4.8 |
89.34 |
502,400 |
9.7% |
18.8% |
12.9% |
24.9 |
16.2 |
2.5 |
14.4% |
|
GATX Corp |
NYSE |
GMT |
3.0 |
65.85 |
338,148 |
-3.5% |
24.2% |
22.4% |
24.5 |
15.4 |
2.1 |
13.9% |
|
Wesco Aircraft Holdings |
NYSE |
WAIR |
1.9 |
20.02 |
394,073 |
-10.9% |
12.0% |
10.4% |
16.9 |
14.9 |
2.1 |
12.3% |
|
American Woodmark |
NASDAQ |
AMWD |
0.5 |
31.11 |
100,338 |
-4.2% |
100.0% |
42.6% |
24.1 |
16.9 |
2.5 |
12.2% |
|
Plexus Corp |
NASDAQ |
PLXS |
1.4 |
41.35 |
185,955 |
-7.3% |
34.8% |
15.7% |
15.6 |
15.1 |
1.8 |
11.8% |
|
Terex Corp |
NYSE |
TEX |
4.4 |
39.62 |
1,551,319 |
-7.6% |
168.6% |
19.8% |
18.7 |
14.8 |
2.0 |
11.5% |
|
Curtiss-Wright Corp |
NYSE |
CW |
3.0 |
62.27 |
283,916 |
-3.4% |
48.5% |
19.4% |
19.1 |
18.1 |
1.9 |
10.5% |
|
Celestica Inc |
TSX |
CLS |
2.3 |
12.76 |
651,849 |
5.9% |
14.3% |
19.0% |
17.0 |
12.0 |
1.3 |
10.5% |
Source: Bloomberg
Company Description:
Huntington Ingalls Industries Inc (NYSE: HII)
Huntington Ingalls Industries, Inc. (HII) designs, builds, and maintains nuclear and non-nuclear ships for the United States Navy and Coast Guard. The company also provides after-market services for military ships worldwide. HII consists of two primary business divisions, Newport News Shipbuilding and Ingalls Shipbuilding.
Linamar Corp (TSX: LNR)
Linamar Corporation manufactures precision machine components, assemblies, and castings primarily for the automotive industry. The company also sells to the defense and aerospace industries. Linamar manufactures engines, transmissions, drivelines, steering, suspension components, and brake components.
Littelfuse Inc (NASDAQ: LFUS)
Littelfuse, Inc. manufactures and sells fuses and other circuit protection devices for use in the automotive, electronic, and general industrial markets. The company also makes relays, switches, circuit breakers, and indicator lights. Littelfuse sells its products around the world.
CAE Inc (TSX: CAE)
CAE, Inc. provides simulation and modeling technologies and integrated training services for civil aviation and defense customers worldwide.
Ryder System Inc (NYSE: R)
Ryder System, Inc. provides a continuum of logistics, supply chain, and transportation management solutions worldwide. The company’s offerings range from full-service leasing, commercial rental and maintenance of vehicles to integrated services. The company also offers comprehensive supply chain solutions, logistics management services, and e-Commerce solutions.
GATX Corp (NYSE: GMT)
GATX Corporation leases, operates, manages and remarkets long-lived, widely used assets, primarily in the rail and marine markets.The company leases tank cars, freight cars and locomotives in North America, Europe and India. GATX Corp. also actively manages transportation and other leased assets on behalf of third parties.
Wesco Aircraft Holdings Inc (NYSE: WAIR)
Wesco Aircraft Holdings, Inc. provides supply chain management services to the global aerospace industry. The company also provides hardware, bearings, tools, electronic components, and machined parts. Wesco’s services include just-in-time delivery, long-term agreements, management of supplier relationships, inventory management, quality assurance, and kitting.
American Woodmark Corp (NASDAQ: AMWD)
American Woodmark Corporation manufactures kitchen cabinets and vanities for the remodeling and new home construction markets. The company offers a wide variety of cabinet lines differing by design, material, and finishes. American Woodmark’s products are sold throughout the United States through independent distributors and directly to home centers, builders, and home manufacturers.
Plexus Corp (NASDAQ: PLXS)
Plexus Corp. is a participant in the Electronics Manufacturing Services (EMS) Industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.
Terex Corp (NYSE: TEX)
Terex Corporation is a diversified global manufacturer operating in four business segments: aerial work platforms; construction; cranes; and materials processing. Terex manufactures a broad range of equipment for use in various industries including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.
Curtiss-Wright Corp (NYSE: CW)Curtiss-Wright Corp (NYSE: CW)
Curtiss-Wright Corporation designs, manufactures, and overhauls precision components and systems. The company’s systems provide highly engineered services to the aerospace, automotive, shipbuilding, oil, petrochemical, agricultural equipment, power generation, metal working, and fire and rescue industries.
Celestica Inc (TSX: CLS)
Celestica Inc. designs and manufactures electronic components. The company’s products and services include design, prototyping, printed circuit assembly, full system assembly, power converters, memory packages and repair services. Celestica markets its products and services to original equipment manufacturers, primarily in the computer and communications sector.
