3 Industrial Stocks to Buy Before the Bear Market Is Over
The industrial sector is inherently cyclical, which is why investors are so down on the sector right now. In fact, recessionary fears are a big part of what's driving the current bear market. But, if you think long term, a lot of industrial companies look like they could be good additions today. Some companies to look at are Stanley Black & Decker (NYSE: SWK), Rockwell Automation (NYSE: ROK), and Honeywell International (NASDAQ: HON). Here's a quick look at each of them and why they could be worth additions yo one's portfolio.
Stanley Black & Decker's stock is off by a massive 60% or so in 2022. That's not actually so surprising; management has cut its full-year earnings projections by more than half since the start of the year. That's not good, with the tool maker suffering from falling sales, supply chain issues, and rising costs thanks to inflation.
Stanley Black & Decker has material exposure to retail customers. This group of buyers tends to pull back more quickly than business customers during hard times. That's exactly what management has been seeing of late, with tool sales to professionals still holding up pretty well. The retail side of the business, however, makes the company heavy on what is called the short cycle in the industrial space. When the economy eventually recovers, Stanley Black & Decker is likely to see business rebound more quickly than many of its industrial peers as consumers head out to the stores again. Meanwhile, management isn't sitting still but looking to cut costs and streamline operations.
Source Fool.com
