Our Outlook for Industrials Stocks
The industrial sector continues to enjoy decent U.S. growth, but slowing in China and Europe is a near-term concern.
Quarter-End Insights
Mentioned: Airbus SE (AIR)
, Komatsu Ltd (KMTUY)
, Industrial Select Sector SPDR® ETF (XLI)
, Parker Hannifin Corp (PH)
, Terex Corp (TEX)
, Rockwell Collins Inc (COL)
, Precision Castparts Corp (PCP)
, LKQ Corp (LKQ)
, CSX Corp (CSX)
, TRW Automotive Holdings Corp (TRW)
- The industrial sector likely enjoyed solid, if slower, growth in the first quarter, led by continued advancement in the U.S. economic environment and further gains in emerging markets.
- Both housing and nonresidential construction spending look to climb in the near term, with several leading indicators suggesting more-positive results over the remainder of 2012.
- Overall, we don't think valuations in the industrials universe currently offer sizable margins of safety, although we still believe investors can enjoy some opportunities in individual companies.
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Adam Fleck does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.