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Quarter-End Insights

Industrials: Pockets of Value in Automotive

Bargains are currently scarce in the sector, but industrials continue solid execution and segment portfolio refinement.

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  • We consider industrials to be fairly valued, generally speaking, but see pockets of value in the automobile manufacturing sector. 
  • Industrials are benefiting from healthy midcycle demand and are producing solid margins.
  • Flush with cash and having refinanced high-interest-rate debt during recent years, some industrials have turned to refining their portfolios to better match long-run targets.

Keith Schoonmaker has a position in the following securities mentioned above: GM. Find out about Morningstar’s editorial policies.