Stocks on Wall Street registered gains for the straight third trading session Wednesday driven by strong March 2014 industrial production data. The Federal Reserve reported that industrial production grew 0.7% in March, surpassing consensus estimates of 0.5% while February data was also revised upward to 1.2% from an earlier reported 0.7% on account of stronger production for durable goods and mining. Manufacturing output grew 0.5%, mining output rose 1.5% and utilities output gained 1% in March. Capacity utilization rose to 79.2% from an upwardly revised 78.8% during February.
Industrial production during the first quarter registered an annualised growth of 4.4%. Manufacturing output increased by an annualized 1.5%, while mining output gained 9.6% and utilities output surged 17.9% benefitting from the need to stay warm during the unusually frigid winter.
Ubika Research has shortlisted 10 attractive U.S. industrial stocks that have registered significant growth in sales and earnings during 2013 and are estimated to register strong growth during 2014 as per consensus estimates compiled by Bloomberg. Moreover, these stocks are currently trading at relatively low forward Price-to-Earning (P/E) multiples compared to the industry average and provide Return on Equity (ROE) in excess of 10%. We note that the majority of these stocks have recorded significant gains during the past three months with daily average trading volume in excess of 100,000. These stocks recorded gains during yesterday’s trading session following the release of the industrial production data.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
3- Months Average Volume |
Price Return |
Price Return |
Sales Growth |
Sales Growth |
EPS Growth |
EPS Growth (2014E) |
1 Yr- Forward PE |
Return on Equity |
|
American Railcar Industries Inc |
NASDAQ |
ARII |
1.3 |
62.68 |
324,917 |
36.8% |
1.1% |
5.5% |
13.6% |
36.1% |
15.5% |
13.3 |
21.6% |
|
Global Payments Inc |
NYSE |
GPN |
4.9 |
67.85 |
744,144 |
-2.0% |
1.5% |
7.8% |
7.4% |
16.3% |
12.7% |
16.5 |
20.6% |
|
Primoris Services Corp |
NASDAQ |
PRIM |
1.4 |
27.41 |
215,941 |
-16.2% |
1.7% |
26.1% |
9.9% |
22.7% |
4.4% |
17.3 |
19.1% |
|
Gentex Corp/MI |
NASDAQ |
GNTX |
4.3 |
29.22 |
869,469 |
-12.9% |
2.3% |
6.6% |
15.2% |
31.4% |
17.2% |
16.1 |
18.2% |
|
AZZ Inc |
NYSE |
AZZ |
1.1 |
43.86 |
155,013 |
3.0% |
1.6% |
21.6% |
12.8% |
47.5% |
21.1% |
16.8 |
17.8% |
|
Costamare Inc |
NYSE |
CMRE |
1.6 |
20.77 |
163,763 |
10.7% |
0.8% |
7.3% |
20.0% |
13.3% |
15.7% |
12.3 |
17.3% |
|
Methode Electronics |
NYSE |
MEI |
1.1 |
28.42 |
483,245 |
-17.1% |
2.6% |
11.8% |
43.3% |
395.5% |
119.4% |
16.0 |
15.0% |
|
Wesco Aircraft Holdings Inc |
NYSE |
WAIR |
2.0 |
21.19 |
358,967 |
-3.2% |
0.3% |
16.2% |
37.7% |
12.0% |
10.2% |
15.8 |
13.3% |
|
AerCap Holdings NV |
NYSE |
AER |
4.5 |
39.42 |
1,206,315 |
9.5% |
0.9% |
8.0% |
217.0% |
108.1% |
19.4% |
12.5 |
12.9% |
|
Landec Corp |
NASDAQ |
LNDC |
0.3 |
12.08 |
129,401 |
8.6% |
1.0% |
39.1% |
6.0% |
77.6% |
3.3% |
16.7 |
9.9% |
Source: Bloomberg
Company Description:
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.
Global Payments Inc (NYSE: GPN)
Global Payments Inc. provides electronic transaction processing, information systems, and services. The company serves the financial, corporate, government, and merchant communities on a worldwide basis. Global Payments provides funds transfer, merchant services, merchant accounting, Internet services, and other services.
Primoris Services Corp (NASDAQ: PRIM)
Primoris Services Corporation is a holding company. The company, through its subsidiaries, provides wide range of construction, fabrication, maintenance and replacement services, as well as engineering services to public utilities, petrochemical companies, energy companies, municipalities and other customers.
Gentex Corp/MI (NASDAQ: GNTX)
Gentex Corporation designs, manufactures, and markets products that use electro-optic technology. The company’s product lines include automatic-dimming rearview mirrors and fire protection products. Gentex’s Night Vision Safety Mirror automatically darkens to the degree required to eliminate rearview headlight glare. The company sells its products around the world.
AZZ Inc (NYSE: AZZ)
AZZ Incorporated manufactures specialty electrical equipment and components for the global power generation, power transmission, and distribution markets. The company also provides hot dip galvanizing services to the steel fabrication industry across the United States.
Costamare Inc (NYSE: CMRE)
Costamare, Inc. owns container ships. The company charters its vessels to shipping companies.
Methode Electronics Inc (NYSE: MEI)
Methode Electronics, Inc. manufactures component devices worldwide. The company’s products are sold to original equipment manufacturers of information processing and networking equipment, voice and data communications systems, consumer electronics, automobiles, aerospace vehicles, and industrial equipment.
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.
AerCap Holdings NV (NYSE: AER)
AerCap Holdings NV is an integrated global aviation company. The company offers aircraft and engine leasing, trading and parts sales as well as aircraft management services aircraft and engine maintenance, repair and overhaul, or MRO, services and aircraft disassemblies through certified repair stations.
Landec Corp (NASDAQ: LNDC)
Landec Corporation designs, develops, manufactures, and sells temperature activated and other specialty polymer products for a variety of food packaging, industrial, agricultural, and medical applications. The company’s products are based on its Intelimer polymers, which differ from other polymers in that they can be customized to abruptly change their physical characteristics.
