Industrials has outperformed despite signs of an economic slowdown and fears over tariffs.
The stocks in this sector look fairly valued, and tariffs seem to be only a minor threat.
Plus, five takeaways from this year's Electrical Products Group Conference.
Logistics also looks promising.
Heavy equipment firms and industrial distributors look compelling as the market worries about sanctions and the prospect of a slowing economy.
We've trimmed our near-term growth expectations for international operations and moderated our margin improvement expectations for Express.
Margins should improve thanks to additional capacity and continued acquisition integration during the season of robust freight and parcel demand.
Core demand remains strong, and tariffs are a short-term headwind that will eventually wane.
We're maintaining our fair value estimate and narrow economic moat rating for the firm.
The improvement in the wide-moat railroad's operating ratio is impressive.
Among a mostly fairly valued industrials sector, some good values remain.
The narrow-moat company improved value and pricing during the quarter, and we expect margins to improve.
We've updated our forecasts based on the expectation that Canada and Mexico will be exempt from Trump's steel and aluminum tariffs.
Although not a screaming bargain, CP is trading at a discount to its peers today and is less exposed to the specter of declining coal volumes.
Industrials are the second-most-expensive sector we cover, but these picks can reward investors.
Volume and yield improvements at the narrow-moat firm are impressive, and we're raising our fair value estimate.
The railroading legend set a new standard for the operating margins and asset efficiency North American railroads can accomplish.
Fed Ex's narrow moat is widening, thanks to improvements in its ground shipping segment.
Any fair value change for the wide-moat railway will be upward and minor.
The wide-moat firm leads all North American railroads in dividend yield.
We expect the narrow-moat company to announce pricing changes before November, similar to what UPS just put in place.
The wide-moat company remains arguably the highest-quality Class I railroad.
Shareholders overwhelmingly approved the CEO's rich compensation package, despite his undisclosed health condition.
Restructuring efforts over the past few years are starting to come to fruition for the wide-moat manufacturer.
GM, Johnson Controls, and Stericycle are our favorites.
While most rails are fairly valued today, Union Pacific is trading at a discount, and it is poised to benefit from an intermodal recovery.
The narrow-moat company showed progress on TNT integration and restoring Ground margins, but we're skeptical on the value of the Freight segment.
New CEO Hunger Harrison is the low-risk, high-potential leader for this wide-moat railroad in need of margin improvement.
We're trimming our estimate after law enforcement agencies executed a search and seizure warrant at three of the company's facilities.
We believe Hunter Harrison will become CEO and drive margin expansion at the wide-moat railroad.
Coal may still be in long-term decline, but positive near-term trends have led us to boost our fair value estimate.
Former Canadian Pacific CEO is teaming up with an activist investor to try and boost results at CSX.
Growth would have been greater this quarter had management not discontinued relationships with customers with which it could not agree on pricing and capacity for peak season, but this discipline bodes well for future margin improvement.
Defense is likely to be the clearest beneficiary, with a mixed impact for other sectors.
Near-term uncertainty surrounding industrial stocks' performance increased with the election of Donald Trump.
There's more to this wide-moat rail than just coal, but adjusting to a low-coal book of business takes some time.
The narrow-moat shipping giant reported excellent fiscal first-quarter Express and Ground results despite relatively stagnant global economic growth.
Our wide moat ratings are intact for all six railroads, however.
The railroad continues to produce outstanding operating ratios, despite demand fluctuations.
Despite low fuel prices pointing toward the contrary, railroads' competitive advantages remain strong against transportation rivals.
Containers, coal, crude, and codes are investors' current concerns.
FedEx's $4.8 billion bid for TNT will combine two firms with quite different strengths while boosting global delivery cost advantages, writes Morningstar analyst Keith Schoonmaker.
Bargains are currently scarce in the sector, but industrials continue solid execution and segment portfolio refinement.
Class I railroads have cost advantages and scale efficiencies that give them a competitive edge over lesser players.
Fourth-quarter expenses reflect the shock of massive peak-season demand.
Canadian Pacific's E. Hunter Harrison has forged a new standard of profitability in a two-centuries-old industry over the course of his career.
Most industrials are fairly valued at present, with a pocket of value in automakers.
Morningstar's Matt Coffina and Keith Schoonmaker discuss why companies in this sector have wide moats and which are the best railroads for long-term investors.
Railroads bolstered our confidence in the persistence of excess returns via solid performance through the recent recession and coal weakness.
Prospects look positive for autos, railroads, and staffing, while possible sequestration could bode ill for defense.