Fastenal (FAST), Grainger (GWW) Shares Lower as Analyst Says Industrials Cycle Finished
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Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Stocks in the Industrial and Construction Supplies sector are under pressure Tuesday afternoon as an earlier research note from MKM Partners' Joshua Pokrzywinski is likely weighing. The analyst put it simply: the industrials cycle is "over."
Pokrzywinski cited margins which have peaked and multiple expansion which will probably not continue as the cycle wanes. The analyst said he also expects stocks in the electrical-equipment segment to remain rangebound even if Europe begins to recover. Pokrzywinski recommended selling stocks in these groups on rallies in the broader equity market.
The analyst downgraded shares of Cooper Industries (NYSE: CBE) from Buy to Neutral with the report.
Elsewhere in the sector: Fastenal (Nasdaq: FAST) down 8.8 percent, Grainger (NYSE: GWW) down 6.2 percent, Applied Industrial Technologies (NYSE: AIT) down 3.4 percent and MSC Industrial Direct (NYSE: MSM) down 4.7 percent.
Pokrzywinski cited margins which have peaked and multiple expansion which will probably not continue as the cycle wanes. The analyst said he also expects stocks in the electrical-equipment segment to remain rangebound even if Europe begins to recover. Pokrzywinski recommended selling stocks in these groups on rallies in the broader equity market.
The analyst downgraded shares of Cooper Industries (NYSE: CBE) from Buy to Neutral with the report.
Elsewhere in the sector: Fastenal (Nasdaq: FAST) down 8.8 percent, Grainger (NYSE: GWW) down 6.2 percent, Applied Industrial Technologies (NYSE: AIT) down 3.4 percent and MSC Industrial Direct (NYSE: MSM) down 4.7 percent.
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