12 Industrial Stocks with Strong CaPex Growth for 2014: Investment Idea of the Day

Published:

Today we have selected 12 Industrial stocks with high capital expenditure, high net fixed asset turnover ratio and strong return on equity during latest reported year. Moreover these stocks have strong estimated capital expenditure growth for 2014. Additionally, we note that few of the shortlisted stocks have recorded decent price gains with daily average trading volume in excess of 100,000 shares over the past three months.

Company Name

Ticker

Exchange

Market Cap
(MN)

Last Price

Average Volume
(3-Months)

Price Change
(3-Months)

Capex*
(Mn)

Capex Growth 2014(E)

Net Fixed Asset Turnover Ratio*

ROE*

Silgan Holdings Inc

SLGN

NASDAQ

3,085.5

48.66

170,131

-1.2%

103.1

49.3%

3.5

27.0%

Woodward Inc

WWD

NASDAQ

3,347.9

51.12

312,853

4.0%

141.6

41.2%

5.5

15.2%

Bemis Co Inc

BMS

NYSE

3,900.3

39.05

550,343

-4.5%

139.8

25.9%

3.9

13.7%

AptarGroup Inc

ATR

NYSE

4,007.8

61.49

223,104

-6.9%

151.5

25.4%

3.0

12.5%

American Railcar Industries

ARII

NASDAQ

1,656.1

77.56

215,739

14.7%

184.1

23.9%

1.5

22.6%

Werner Enterprises Inc

WERN

NASDAQ

1,822.3

25.36

467,903

-4.2%

211.3

23.2%

2.2

10.9%

Hexcel Corp

HXL

NYSE

3,783.0

39.27

875,917

-3.7%

194.9

20.0%

1.7

17.9%

Hub Group Inc

HUBG

NASDAQ

1,538.3

41.10

373,608

-14.7%

110.9

15.7%

14.8

11.7%

ITT Corp

ITT

NYSE

4,361.1

47.61

656,252

1.7%

122.9

13.1%

6.5

53.4%

RR Donnelley & Sons Co

RRD

NASDAQ

3,458.5

17.31

1,831,463

5.6%

216.6

10.6%

7.0

33.0%

Sonoco Products Co

SON

NYSE

4,120.3

40.50

461,145

-7.0%

172.4

7.4%

4.7

14.1%

CAE Inc

CAE

TSX

3,578.7

13.52

1,119,672

-5.7%

157.4

3.9%

1.7

14.1%

Source: Bloomberg
Market Cap & last price are in their respective currencies
Capex: Capital Expenditure
*Latest reported year

Company Description:

Silgan Holdings Inc (NASDAQ: SLGN)
Silgan Holdings Inc. and its subsidiaries manufacture consumer goods packaging products. The company currently produces steel and aluminum containers for human and pet food, custom designed plastic containers for various markets, plastic closures and caps, thermoformed plastic tubs, and specialty packaging items. Silgan markets its products in North America.

Woodward Inc (NASDAQ: WWD)
Woodward Inc. designs, manufactures, and services energy control systems and components for aircraft and industrial engines and turbines. The Company’s products and services are used in the aerospace, power generation, oil and gas processing, and transportation markets, which includes rail, marine, and many light and heavy industrial applications.

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.

American Railcar Industries Inc (NASDAQ: ARII)
American Railcar Industries, Inc. manufactures railroad rolling stock. The company produces and repairs covered hopper and tank railcars, and offers fleet management services. American Railcar markets its products to companies that lease the cars to third parties, shippers, and railroads.

Werner Enterprises Inc (NASDAQ: WERN)
Werner Enterprises, Inc. is a transportation company that primarily hauls truckload shipments of general commodities in both interstate and intrastate commerce. The company operates in the continental United States, as well as in Canada and Mexico.

Hexcel Corp (NYSE: HXL)
Hexcel Corporation develops manufactures, and markets reinforcement products, composite materials, and engineered products. The company’s products are used in the commercial aerospace, space and defense, electronics, general industrial, and recreation markets for a variety of end products. Hexcel operates around the world.

Hub Group Inc (NASDAQ: HUBG)
Hub Group, Inc. is a full-service transportation provider, offering intermodal, truck brokerage, and logistics services. The company arranges for the movement of its customers’ freight in containers and trailers over long distances. Hub Group operates through a nationwide network of hubs, located near significant concentrations of shipping customers and railheads.

ITT Corp (NYSE: ITT)
ITT Corp. is a diversified manufacturer of engineered components and customized technology solutions for industrial end-markets. The company’s products range from complex pumps to advanced brake pads to intricate connectors. ITT’s key end-market industries include energy infrastructure, electronics, aerospace and transportation.

RR Donnelley & Sons Co (NASDAQ: RRD)
R. R. Donnelley & Sons Company provides commercial printing and information services. The company provides solutions that include commercial printing, direct mail, financial printing, print fulfillment, labels, forms, logistics, call centers, transactional print-and-mail, print management, online services, digital photography, color services, and content and database management.

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.

CAE Inc (TSX: CAE)

CAE, Inc. provides simulation and modeling technologies and integrated training services for civil aviation and defense customers worldwide.

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