10 Undervalued Industrial Stocks
Sean Mason, SmallCapPower.com | Jun 17, 2014 10:46AM ET
According to Federal Reserve, the U.S. industrial production increased 0.6% during May 2014 beating consensus estimates of 0.5% signalling that the U.S. economy is improving. Manufacturing output, the largest component of the overall industrial production, increased 0.6% in May after falling 0.1% in the previous month, while mining output, including Oil and Gas production, jumped 1.3%. Capacity utilization moved up 0.2 percentage point to 79.1% in May. An industry survey earlier this month by the Institute for Supply Management (ISM) showed that U.S. manufacturing sector expanded at the fastest pace in May due to strong gains in new orders and production.
Today, we have picked 10 U.S. industrial stocks that 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 is considered as attractive investment metrics from a valuation standpoint. Moreover, these stocks provide high return on equity (ROE). We note that a majority of these stocks has recorded gains during the past month with average traded volume of above 100,000.
Source: Bloomberg
h2 Company Description:/h2 Motorcar Parts of America (NASDAQ:MPAA)
Motorcar Parts of America, Inc. manufactures replacement alternators and starters for imported and domestic cars and light trucks in the United States and Canada. The company also assembles and distributes ignition wire sets for imported and domestic cars and light trucks. Motorcar Parts has facilities in the United States, Singapore, and Malaysia.
Huntington Ingalls Industries (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.
Graphic Packaging Holding Company (NYSE:GPK)
Graphic Packaging Holding Company is an integrated provider of paperboard and integrated paperboard packaging solutions to multinational beverage and consumer products companies. The company manufactures folding cartons for frozen and non-frozen food and beverage products.
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Manitex International (NASDAQ:MNTX)
Manitex International Inc. provides specialized and custom configured cranes, materials and container handling equipment sold through dealerships, globally. The company's equipment is sold into a select group of end-markets and geographies, currently focused on energy, utilities, military, railroads, ports, and government/agency applications.
Terex Corporation (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.
Daktronics (NASDAQ:DAKT)
Daktronics, Inc. supplies electronic scoreboards, computer programmable display systems, and large video displays for sport, business, and government applications. The company designs, manufactures, installs, and services integrated systems that display real-time data, graphics, animation, and video.
Sanmina Corporation (NASDAQ:SANM)
Sanmina Corporation provides electronics contract manufacturing services to customers located around the world. The company offers its customers expertise in new product introduction, manufacturing, and design and fabrication of complex interconnect products. Sanmina Corporation specializes in circuit fabrication, system assembly, integration, and high-end enclosures and cabling.
Orbotech Ltd. (NASDAQ:ORBK)
Orbotech, Ltd. designs, develops, manufactures, markets, and services automated optical inspection systems and imaging solutions. The company also markets computer aided manufacturing solutions. Orbotech has a network of marketing, sales, and customer support teams located throughout North America, Europe, Japan, and the Pacific Rim.
OSI Systems (NASDAQ:OSIS)
OSI Systems, Inc. produces medical monitoring and anesthesia systems; security and inspection systems; and lasers, optics, and optoelectronic components. The company's products include blood pressure monitors, anesthesia machines and hemoglobin saturation monitors; systems for inspecting baggage, people, and vehicles; and lasers, lenses, prisms, and microelectronic components.
Aegion (NASDAQ:AEGN)
Aegion Corp. provides technologies and services to protect, rehabilitate, strengthen, and extend the life of infrastructure assets including pipelines, bridges, buildings and waterfront structures. The company provide a variety of infrastructure solutions to the energy and mining, commercial and structural, and water and wastewater markets.
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