Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 8% over the past six months. This performance was disappointing since the S&P 500 stood firm.
Some companies can grow regardless of the economic backdrop, but the odds aren’t great for the ones we’re analyzing today. Keeping that in mind, here are three industrials stocks that may face trouble.
Market Cap: $23.84 billion
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.
Why Does TDY Worry Us?
Teledyne is trading at $508.80 per share, or 23.7x forward price-to-earnings. If you’re considering TDY for your portfolio, see our FREE research report to learn more.
Market Cap: $421.6 million
Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.
Why Do We Think KE Will Underperform?
Kimball Electronics’s stock price of $17.17 implies a valuation ratio of 11x forward price-to-earnings. To fully understand why you should be careful with KE, check out our full research report (it’s free).
Market Cap: $58.38 billion
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE:FDX) is a global provider of parcel and cargo delivery services.
Why Are We Out on FDX?
At $243.01 per share, FedEx trades at 11.2x forward price-to-earnings. Read our free research report to see why you should think twice about including FDX in your portfolio, it’s free.
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
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