Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 1.8% over the past six months. This performance was discouraging since the S&P 500 returned 1.1%.
Investors should tread carefully as timing cyclical companies is a challenging task, and any misstep can have you catching a falling knife. Taking that into account, here are three industrials stocks that may face trouble.
Market Cap: $1.42 billion
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Are We Hesitant About LNN?
Lindsay is trading at $132.42 per share, or 21.5x forward price-to-earnings. To fully understand why you should be careful with LNN, check out our full research report (it’s free).
Market Cap: $812.3 million
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Should You Dump ASTE?
At $37.44 per share, Astec trades at 14x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than ASTE.
Market Cap: $1.99 billion
Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Why Should You Sell WERN?
Werner’s stock price of $32.12 implies a valuation ratio of 26.4x forward price-to-earnings. Check out our free in-depth research report to learn more about why WERN doesn’t pass our bar.
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 6 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 Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
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