Given the recent volatility in the stock market, some investors may feel like industrial and specialty machinery stocks are risky investments. After all, investing in an industry known for its heavy capital spending and cyclical demand sounds scary at first glance.
These concerns aren’t entirely unfounded. Given that these companies invest vast amounts of money in research and development, it’s common to see them take a hit during economic uncertainty. However, when you take a closer look at this sector, there are many great opportunities for savvy investors.
Below we’ll explore three specialty industrial machinery stocks that offer investors opportunities with affordable risk profiles and long-term growth potential. These three stocks also have excellent fundamental characteristics such as strong cash flow and profitability metrics that can help them withstand volatile markets.
The industrial machinery sector includes companies that manufacture equipment and devices to streamline manufacturing processes in various industries. With the advent of digital transformation and Industry 4.0, demand for industrial machinery is expected to grow in the coming years as manufacturers invest in new technologies that improve production efficiency and cut costs.
Whether you’re just getting started with researching stocks or are an experienced investor looking to diversify your portfolio, it’s essential to understand which factors are critical when evaluating potential investments. The market is filled with riskier small-cap stocks that have high potential rewards but also high potential risks.
Regal Rexnord Corporation
RRX (abbreviation for the Corporation of the Regal Rexnord). The investment analysts working for KeyCorp raised their profit predictions for the third quarter of 2022 for shares of Regal Rexnord. This information was included in a research report distributed to customers and investors on Monday, August 22nd. Analyst J. Hammond of KeyCorp now thinks the company will earn $2.60 per share for the quarter. This figure represents an improvement from his previous projection of $2.57 per share for the company’s earnings. The current rating that has been placed on the shares of KeyCorp is Overweight, and the price target has been established at $172.00. According to the most recent estimate from the consensus of financial analysts, Regal Rexnord will finish the year with earnings of $10.70 per share. According to the forecast provided by KeyCorp, Regal Rexnord would bring in $2.65 in profits per share during the final three months of 2022. Many research companies are now paying attention to RRX because of recent events. Barclays increased their price target for Regal Rexnord from $140.00 to $1570.00 in a research report published on Wednesday, August 3rd. Bloomberg’s previous advice for Regal Rexnord was to “hold” the stock, but, in a research report published on Friday, July 8th, Bloomberg altered its recommendation to “buy” for the company. In a research report issued on Wednesday, August 3rd, Baird increased their price objective on Regal Rexnord from $140.00 to $1580.00 in a research report that was The study was made public.
The Goldman Sachs Group downgraded Regal Rexnord from a “buy” rating and a price objective of $181.00 in a research report published on Thursday, June 23rd. The study was made available to the public. This was the third and last downgrade, and it was also the most significant. There have been five separate research analysts who have all concluded that investors should buy the stock. The information provided by Bloomberg indicates that the stock is now given the recommendation of “Buy,” and analysts have established an average price goal for the stock of $166.00. Rexnord Stock Performance, also known as Regal RRX, had a price of $144.90 when it first went on the market on Thursday. The company has a market capitalization of $9.63 billion, a price-to-earnings ratio of 25.88, a price-to-earnings-growth ratio of 1.35, and a beta value of 1.27. These metrics indicate that the stock is somewhat expensive relative to its earnings. Over the previous 52 weeks, the price of Regal Rexnord has fluctuated between a low of $108.28 and a high of $176.91. The stock price has been $125.62 on a moving average basis over the last 50 days, while the price has been $136.02 on a moving average basis over the past 200 days. The ratio of the current too quick ratio is 1.52, the ratio of the wind too quick ratio is 2.76, and the ratio of debt to equity is 0.34. On August 1st, a Monday, Regal Rexnord (NYSE: RRX) released its most recent quarterly results report. The report was for the period ending in the previous quarter. The company reported earnings per share for the quarter of $2.76, which is $0.15 higher than the average expectation from market analysts, who had predicted payments of $2.61 per share.
The return on equity and the net margin came in at 11.15 percent for Regal Rexnord, with 6.99 percent being the net margin. The actual sales for the company for the quarter came in at $1.35 billion, which was much more than the experts’ average projection of $1.32 billion for the amount the company would bring in during the period. The earnings per share for the company came in at $2.28, an increase from the prior year’s performance for the same period. The quarter’s revenue rise was greater by 52.1% than it had been during the same quarter the year before. Dividend payment has been declared by the company Regal Rexnord. In addition, the company has stated that it will be paying a quarterly dividend to its shareholders on Friday, October 14th. This dividend payment is set to take place. Investors who had their shares on file as of September 30th will be eligible to receive a dividend payment of $0.35 per share. This payment will be made to investors who had their shares on file as of September 30th. This equates to a dividend payment of $1.40 when computed annually, with a dividend yield of 0.97%. The day that the dividend will be withheld from shareholder accounts is the following Thursday, September 29th. The dividend payout ratio (DPR) for Regal Rexnord has been recently adjusted to 25.00% from its previous level. The Common Practice of Insider Trading at Regal Rexnord: On August 4th, John C. Kunze, an insider of the firm, sold 1,155 shares of the company’s stock. This was mentioned in other recent stories about Regal Rexnord. The total price of the transaction for the stock was $136.88 per share, which comes to a total of $158,096.40 for the stock sale. As a consequence of the acquisition, the insider now possesses 6,920 shares.
On the Securities and Exchange Commission website, the document that was filed and in which the transaction was exposed can be found in its entirety. 0.65% of the business is owned by an employee of the company in question. Hedge Funds Are Being Discussed Regarding Regal Rexnord Recently, hedge funds have adjusted how they are now holding onto the shares. Abrdn Plc invested $706,000 in Regal Rexnord during the year’s first three months. National Bank of Canada FI successfully obtained a new interest in Regal Rexnord valued at approximately $184,000 during the first three months of 2018. Qube Research and Technologies Ltd. spent roughly $1,526,000 purchasing a new position in Regal Rexnord during the year’s first three months. MAI Capital Management increased its holdings in its investment portfolio during the first three months of the year by purchasing a new Regal Rexnord investment that was valued at around $263,000 at that time.
Last but not least, during the first quarter, Foster & Motley Inc. spent approximately $286,000 purchasing new stock in Regal Rexnord. This was the company’s only investment for the period. Hedge funds and other institutional investors hold 98.16 percent of the company’s stock. Specifics regarding the operation of the organization Regal Rexnord The Regal Rexnord Corporation and its subsidiaries design, make, and sell all over the world a wide range of specialized electrical components and systems, as well as industrial powertrain solutions, power transmission components, electric motors, and electronic controllers, air-moving goods, and specialized electrical components and systems. These products include industrial powertrain solutions, power transmission components, electric motors, electronic controllers, and technical electrical components and systems. The organization is broken up into four main corporate sub-divisions: Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions.
ITT Inc.
According to the data presented by TheStreetRatingsTable, the stock analysts at TheStreet assigned a rating of “b-” to ITT (NYSE: ITT). This rating was included in a research note distributed to investors on Tuesday. Before it, the experts had graded the company with a “c+.” In addition, the writings of some other analysts have included essays about the company, which these analysts have done.
In a research note released on August 15th, Citigroup said they had increased their price objective for ITT to $90.00. In a report distributed on Tuesday, June 21st, DA Davidson lowered its “buy” rating and target price for ITT shares, which had previously been set at $110.00. The new target price is $100.00. The study centered on the shares of ITT. It was announced on Monday, June 13th, that Cowen lowered their “outperform” rating on ITT shares and lowered their price objective on those shares from $105.00 to $92.00. All this information was included in a research note that was made public on Monday. In a research note published on Tuesday, July 12th, KeyCorp lowered its “overweight” rating on ITT shares and lowered its price objective on the stock from $100 to $90.00 per share in a research note. In addition, the note stated that they decreased their price objective on the stock from $100 to $90.00 per share. In a research note published on Wednesday, May 4th, Baird lowered their target price for ITT shares, bringing it down from $90.00 to $84.00. Nine research experts have given the business a buy recommendation. However, only two research professionals have recommended that investors hold onto their shares. Bloomberg’s research indicates that the company is now rated as having a consensus recommendation of “Moderate Buy” and has an average price objective of $90.20. ITT’s Stock and Its Recent Performance ITT stock was introduced to the market on Tuesday for $77.67 a share. The price of a share of the company’s stock is currently trading at $72.14 (the fifty-day moving average), while the price of a share of the company’s stock is now $75.15 (the 200-day moving average).
Based on the firm’s price-to-earnings ratio of 19.52, its price-to-earnings-to-growth ratio of 1.44, and its beta value of 1.47, the company’s market capitalization is estimated to be $6.42 billion. Over the previous twelve months, ITT’s stock price ranged from a low of $63.77 to a high of $105.54 at one point. ITT (NYSE: ITT) issued a news release on Thursday, August 4th, detailing the company’s quarterly financial results. The company announced earnings per share for the quarter of $0.98, which is higher than the consensus estimate of $0.96. The expectation was for earnings per share to be $0.96. ITT’s return on equity came in at 16.13%, while the net margin for the company was at 12.01%. The company reported a total of $733.30 million in sales during the period, significantly higher than the average expectation of $715.19 million. The company reported a profit of $0.94 per share for the same period in the prior year’s financial statements. Compared to the same period in the previous year, the third quarter of this year saw an increase in revenues of 6.0% for the company. Sell-side analysts forecast that ITT will bring in earnings of $4.42 per share in 2018, one year ahead of their projections.
Insiders can forecast the future. On August 11th, Senior Vice President Mary Elizabeth Gustafsson sold 3,206 shares of the company’s stock. This is just one of the many elements that are relevant to this subject. On average, $81.95 was paid for each share of stock, and a total value of $262,731.70 was obtained from the sale of shares. As a result of the completion of the transaction, the senior vice president now owns 53,477 company shares, which together have a value of approximately $4,382,440.15. The information concerning the sale submitted to the Securities and Exchange Commission (SEC) is currently available on the website of the SEC. A holding in the company that is equal to 0.50% of its total shares is held by corporate insiders. The amount of money brought in and taken out of institutions. Several hedge funds and institutional investors have adjusted the percentage of the company’s stock they possess due to these changes. The North Carolina State Treasurer increased the number of the state’s holdings in ITT by 1.6% over the first three months of 2018. The conglomerate’s stock is now valued at $2,387,000 after the Treasurer of the State of North Carolina purchased an additional 505 shares during the most recent quarter. As a result of these purchases, the Treasurer now possesses a total of 31,740 shares of the conglomerate’s stock. ITT received a new investment from the Bank of Nova Scotia for $10,379,000 during the year’s first three months.
During the first three months of 2018, Meeder Asset Management Inc. invested approximately $26,000 to purchase a new ITT holding. During the last three months of 2018, the Texas Teacher Retirement System boosted the total number of shares of ITT stock, which is owned by 19.0%. The Teacher Retirement System of Texas currently holds 16,600 shares of the conglomerate’s stock after purchasing an additional 2,654 shares during the quarter. The shares have a combined value of $1,696,000 because the system has 16,600. And finally, RMB Capital Management LLC could add 3.2% more ITT shares to its portfolio throughout the first three months of this year. RMB Capital Management LLC now has 84,580 shares of the conglomerate’s stock, valued at $6,361,000, following the acquisition of an additional 2,595 shares during the preceding quarter. Institutional investors and hedge funds currently control 95.64 percent of the total number of shares issued by the firm.
Regarding ITT Inc. is a leading global manufacturer and distributor of customized key components and specialized technical solutions for various industries, including the transportation industry, industrial manufacturing, and the energy sector, amongst others. Some of the industries that ITT Inc. serves include: The three pillars of the company that contribute to its overall structure are Motion Technologies, Industrial Processes, and Connect & Control Technologies. These are the three divisions of the firm. In addition to manufacturing sealing technologies, the Motion Solutions division also produces components for the transportation industry, such as brake pads, shims, shock absorbers, and energy absorption components. This sector includes passenger cars, trucks, light-and, heavy-duty commercial and military vehicles, buses, and trains. Components for energy absorption are yet another product line offered by this division.
