Stock Market 2008 - Industrial Sector Stock Picks
The industrial sector of the stock market is where I am now more involved. While big names such as General Electric (NYSE: GE) and Caterpillar (NYSE: CAT) you can not jump at you as big winners, many of these companies have been hit solid rock unfair, and I see the value. As an added bonus, industrial firms often act as a hedge of fast growing markets such as agriculture. We have some killer stock tips this week, see what we can dig.
IndustrialMachines - Harsco (NYSE: HSC) is that I have a weakness for the stocks fell, but Harsco's Drop-off its highs, was particularly unjustified. Want proof? How about what's going on in the fourth quarter earnings guidance of $ 0.70 to $ 0.74 and increased guidance for 2008. How about expected sales topping 75 million dollars. Harsco made in mill technology services and gas .. are the best dogs in an opaque market, and I like it. About 70% of their sales are international, and even in a world slowdownThe economy is an unusually high rate of recurring revenues from me confidence in the ability to maintain the momentum of Harsco revenue. Do not worry about rising costs and problems in the construction of houses, Harsco end markets as the global production of steel and non-residential construction is expected to remain stable in 2008.
Despite the difficulties mild Mill Services in the most recent quarter with strong gains exceeded Harsco Rail & Mineral Technologies. I do not see anything, butCapita Growth for 2008 with a possibility Harsco key acquisition could make out completely on their own. Access Services has a beautiful cover in respect of any non-residential construction in more than 25% of its assets in industrial maintenance is recurrent. Protected by a very slowly and $ 55 against a target of $ 75 undervalued ... I have a purchase price below $ 54 for Harsco. Conglomerates - 3M (NYSE: MMM) 3M is a diversified, all big-time offers from tapeRespiratory protective devices. After the collection of guidance for 2008, several companies have released updates to Buy from Hold in January. Investment research firm Stern Agee believes that 10% EPS growth in 2008 seems a done deal in almost any scenario. "Building this kind of safety net of a further economic slowdown is exactly what we want. 3M is now the kind of company that investors are a bit 'anxious about buying again after a fall-off from their highs at' start at $ 95 to $ 75, I maintain that itNo problem, now, before the big move to buy shares again.
We love international growth in an inflated market of the United States, and 3M has 65% growth in foreign currency ... 30% of growth in emerging countries. They are "no magic required" investment we want in 08 '. None of their business should be no problem creating the level of integrated growth and the current ratings Reuters has been estimated at 5% disadvantage compared to a 15% -17% on the head. Certainly there isBells and whistles of 3M, but its global presence in emerging markets, is well positioned to be stationary society with a relatively low risk and benefits. With a price target of $ 95, and a reasonable purchase price of $ 77 - $ 79, I think this giant conglomerate is a winner.
Industrial Engineering - Jacobs Engineering Group (NYSE: JEC) in its recent press release on income (January 21, 2008), the management mentioned Jacobs Engineering Group, against the force in target markets,such as energy, what I believe, are at least 15% of their adaptation to the initiative of the previous quarter. Also in this appeal, have beaten earnings estimates for a few cents and increased guidance for 2008, citing a favorable pricing environment in addition to other factors. This positive outlook "includes the diversity of the U.S. economy." But what I like more visibility Jacobs. Operating margin better than expected in a stimulating environment and order backlog rose to almost $ 15Billion euro, yes billion euro. Of course, this stellar growth is a major challenge for the year, but I feel that at least produce strong growth in the second quarter. If the management remains positive at this point, the sky is the limit.
JEC is in my view, undervalued, and their sustained performance has not missed a beat. When the market turns, Jacobs should be ready to ride the bull. On top of a strong position and free cash flow, have virtually no debt. They work in four areas:Oil & gas, chemicals, infrastructure and the national government, each with great potential. His energy seems to be the most anticipated Gainer in 2008, indicating that the requirement of the customer 'to the problems "have arisen from a low volatility of oil prices. Add this in with a steady pipeline of products, and we see oil & gas and leveraged in the market. I should aim Jacobs tag $ 96 a year, and the feeling of a fair purchase price of $ 70-73 $
Ag machinery and equipment -Manitowoc (NYSE: MTW), I have a fan of Manitowoc for the past few quarters, now we finally have the market underpricing this company like us. Manitowoc competes with Terex (NYSE: TEX), a company with excellent marks from all the high growth potential. However, I believe that most analysts are missing the fact that the crane Terex low quality ... Manitowoc workers want! You have already capitalized on the international application, and smashed earnings estimates of 68 cents to 74 cents. The resultReports also showed that continuing operations increased 119% performance over the previous year and sales jumped 56% of the cranes. Manitowoc's management has confirmed that, despite concerns about the housing market, MTW operations were in fact minimal, exposed to pain.
There is no reason for this trend in 2008 and slow trade below $ 40 is not only right. We all know that agriculture has the market as recently risen sharply. Manitowoc has a hand in the production of related equipment, andalso a key role in the emerging Asian ... where the non-residential construction is constant. Management believes that strong growth focusing on the introduction of new products to market share gains can be achieved (achieved by cross-selling through its extensive distribution network) and better penetration in Asia. Before you start selling late-2007/early-2008 in the crane industry as "the center of a multi-year up cycle" of demand and production has been seen. I expect this trend continuesNow that shares of Manitowoc have been crushed by their unprecedented high. I see that hit $ 54 per share, a cash purchase price of just under $ 39 for an optimum value.
There are many places to look for growth in 2008 by industry. While I was able to find any defense and airlines and space are particularly attractive, I am optimistic on the sector and it would appear United Technologies (NYSE: UTX) suggest, Northrop Grumman (NYSE: NOC) and Lockheed Martin(NYSE: LMT). agricultural giants such as Deere & Co. (NYSE: DE) to be able to make sound investments, but be careful, you have to pay the premium for stocks frequently. Do not hesitate to email me questions you may have stock. The Net Fool
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