12 U.S. Industrial Stocks with High Liquidity & Low Financial Risk: Investment Idea of the Day

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Today, we have shortlisted 12 U.S. industrial stocks with strong ability to pay back their short-term liabilities as indicated by their attractive current ratios (>1.0). Additionally, these companies offer low financial risk (debt to capital ratio <50%) and make efficient usage of assets (asset turnover ratio >1). Moreover, these stocks are also expected to report strong ROE (>10%) for fiscal year 2014. During the past one month, all of the stocks have registered price gains with daily average trading volumes in excess of 100,000.

Company Name

Ticker

Exchange

Market Cap
(US$ MM)

Last Price

Average Volume
(1 Month)

Price Change (1-Month)

Current Ratio (Latest Quarter)

Total Debt to Total Capital (Latest Quarter)

Asset Turnover (Latest Quarter)

ROE 2014 (E)

Landstar System Inc

LSTR

NASDAQ

3,477.9

77.74

373,791

5.0%

1.9

22.9%

3.1

28.6%

Federal Signal Corp

FSS

NYSE

923.8

14.76

269,164

3.9%

2.0

15.3%

1.3

17.8%

Babcock & Wilcox Co/The

BWC

NYSE

3,083.7

28.94

890,657

1.2%

1.9

21.3%

1.1

17.3%

Saia Inc

SAIA

NASDAQ

1,332.2

53.81

232,512

9.8%

1.3

17.4%

1.9

15.6%

Sonoco Products Co

SON

NYSE

4,266.1

42.13

468,916

3.1%

1.6

37.0%

1.2

14.7%

Bemis Co Inc

BMS

NYSE

4,002.2

40.07

814,866

4.2%

2.6

47.6%

1.2

13.1%

AptarGroup Inc

ATR

NYSE

4,213.8

65.10

306,795

4.6%

2.0

29.9%

1.1

12.8%

Con-way Inc

CNW

NYSE

2,835.8

48.96

982,608

12.9%

1.6

37.4%

1.7

12.0%

Cubic Corp

CUB

NYSE

1,419.3

52.84

154,479

9.5%

2.8

11.6%

1.2

11.3%

Alamo Group Inc

ALG

NYSE

545.7

48.25

104,657

12.6%

3.5

36.1%

1.4

10.5%

Sykes Enterprises Inc

SYKE

NASDAQ

1,008.6

23.30

320,845

8.2%

3.1

10.8%

1.4

10.1%

Roadrunner Transportation Systems Inc

RRTS

NYSE

835.1

22.02

257,845

6.8%

1.9

44.8%

1.6

10.1%

Source: Bloomberg

Company Description

Landstar System Inc (NASDAQ: LSTR)
Landstar System, Inc. is a North American truckload carrier. The company transports a variety of freight, including iron and steel, automotive products, paper, lumber, chemicals, foodstuffs, and military hardware. Landstar provides truckload carrier services, intermodal transportation services, and expedited air and truck services to shippers in the US, Canada, and Mexico.

Federal Signal Corp (NYSE: FSS)
Federal Signal Corporation manufactures and supplies safety, signaling, and communications equipment. The company’s equipment includes fire rescue products, street sweeping and vacuum loader vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and dies, and plastic injection mold components.

Babcock & Wilcox Co/The (NYSE: BWC)
The Babcock & Wilcox Company designs, engineers, manufactures and services boilers and other power equipment.

Saia Inc (NASDAQ: SAIA)
Saia, Inc. provides trucking transportation to the retail, petrochemical, and manufacturing industries. The company offers regional, interregional, and national less-than-truckload services, and selected truckload services across the United States.

Sonoco Products Co (NYSE: SON)
Sonoco Products Company manufactures industrial and consumer packaging solutions for customers around the world. The company’s products include flexible packaging, high density film products, and folding cartons. Sonoco Products also has an integrated network of global technology centers focused on materials science, packaging engineering, and process improvement.

Bemis Co Inc (NYSE: BMS)
Bemis Company, Inc. manufactures flexible packaging products and pressure sensitive materials. The company markets its products to customers throughout the United States, Canada, and Europe, as well as Mexico and the Asia Pacific region. Bemis’ products are used in the food, medical, chemical, agribusiness, pharmaceutical, sanitary products, printing, and graphic industries.

AptarGroup Inc (NYSE: ATR)
AptarGroup, Inc. designs, manufactures, and markets pumps, dispensing closures, and aerosol valves. The company’s products are used for fragrance/cosmetics, personal care, pharmaceutical, household/industrial and food products. AptarGroup operates worldwide.

Con-way Inc (NYSE: CNW)
Con-way Inc. is a freight transportation and logistics company. The company has businesses in less-than-truckload and full truckload freight services, expedite, brokerage, airfreight forwarding, logistics, warehousing, supply chain management, and trailer manufacturing.

Cubic Corp (NYSE: CUB)
Cubic Corporation, through its defense group, provides instrumented air and ground combat training systems, battle command training, and simulation support for military forces. The company also produces avionics, data links, and communications products. Cubic’s transportation group provides intermodal ticketing systems for public transit projects worldwide.

Alamo Group Inc (NYSE: ALG)
Alamo Group Inc. designs, manufactures, and distributes heavy duty, tractor-mounted mowing and vegetation maintenance equipment and replacement parts, for industrial and agricultural end-users. The company sells its products in Europe and the United States.

Sykes Enterprises Inc (NASDAQ: SYKE)
Sykes Enterprises, Incorporated provides customer management solutions and services in North America, Europe, Latin America, Asia, and Africa. The company serves customers of companies in the financial services, communications, and technology/consumer markets. Sykes provides technical support and customer service, as well as customer relationship management consulting.

Roadrunner Transportation Systems Inc (NYSE: RRTS)
Roadrunner Transportation Systems, Inc. offers truck freight transportation services. The company offers less than truckload, truckload, parcel and intermodal truck freight delivery, and domestic and international air freight delivery services. Roadrunner operates through independent contractors.

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