The Zacks Analyst Blog Highlights: CIRCOR International, H&E Equipment Services, SiteOne Landscape Supply, Tennant And Northwest Pipe
Zacks Investment Research | Nov 12, 2019 09:39PM ET
For Immediate Release
Chicago, IL –November 13, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CIRCOR International Inc. (NYSE:CIR) , H&E Equipment Services Inc. (NASDAQ:HEES) , SiteOne Landscape Supply Inc. (NYSE:SITE) , Tennant Co. (NYSE:TNC) and Northwest Pipe Co. (NASDAQ:NWPX) .
Here are highlights from Tuesday’s Analyst Blog:
5 Must-Buy Industrial Stocks That Have Skyrocketed in 2019
The industrial sector has performed impressively so far in 2019 despite the fact that the U.S. economy is still reeling under trade-related jitters. A prolonged trade tussle with China has resulted in a global economic downturn. The U.S. economy also lost its pace although it is growing for the 11th year on the trot. In spite of these negatives, several industrial stocks have skyrocketed year to date.
Tarde War Hurts Business Spending
Lingering trade conflict with China has resulted in tariff war wherein duties have been levied on hundreds of billion dollars on each other goods. The U.S. government has already levied 25% tariff on more than $300 billion of Chinese goods mostly used as cheap inputs for the technology and industrial sectors. On the other hand, China imposed tariffs on more than $100 billion U.S. products mainly from the agricultural sector.
Imposition of tariff on China-made low-cost intermediary products raised the input cost of U.S. manufacturers. Consequently U.S. business spending dropped significantly in 2019. The Institute of Supply Management reported that U.S. manufacturing activities contracted for three consecutive months from August to October. Moreover, the latest data on U.S. industrial production showed that it declined 0.4% in September.
Trade-related conflict with China continues despite President Trump’s assurance about substantial progress of a partial deal. Besides technology, the industrial sector also bore the brunt of trade war owing to higher input costs and lower export demand. Both are the direct results of a prolonged trade conflict.
Industrial Sector Shines Despite Headwinds
Despite several headwinds, industrial stocks have performed quite strongly so far this year. The Industrial Select Sector SPDR (XLI), one of the 11 broad sectors of the S&P 500 Index, has rallied 27% year to date, outpacing the benchmark index’s gain of 23.4%. In fact, the industrial sector is so far the second-best performer of the S&P 500 Index after the Technology Select Sector SPDR (XLK) that has surged 39% year to date.
Our Top Picks
In line with this impressive trend, we have narrowed down our search to five industrial stocks that have skyrocketed in 2019 and still have upside left. Each of our picks carries a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
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