These Industrial Stocks Have Been Red Hot This Year So Far.
Industrial stocks could finally be getting the catalyst they need to reach pre-pandemic levels and beyond. Today, President Joe Biden will unveil a $2 trillion infrastructure package as his administration shifts its focus to bolster a post-pandemic economy. The plan will outline spending on infrastructure over the next eight years. The proposal would include $621 billion into transportation infrastructures such as bridges, roads, airports, and electric vehicle development. Additionally, $300 billion would be placed into improving utility grids and building affordable housing, and upgrading schools respectively. The plan would ultimately create jobs, revamp U.S. infrastructure, and fight climate change.
For these reasons, top industrial stocks to watch have been gaining momentum and could be one of the biggest winners to come out from a post-pandemic recovery. Take industrial companies like General Electric (NYSE: GE) that have already doubled in valuation in the last 6 months. Machinery company Caterpillar (NYSE: CAT) has been up by over 50% in this same period. With Democrats looking to pass the package by summer, investors could start jumping on to the industrial bandwagon today.
The sector is of course very huge as it includes companies that produce machinery, equipment, and supplies. The industrial sector also includes companies that provide related services. This includes the energy and materials sectors. Notably, the industry is highly dependent on the state of the economy. All things considered, do you have the following list of some of the best industrial stocks to watch in the stock market today?
Best Industrial Stocks To Buy [Or Sell] Today
- Broadwind Inc. (NASDAQ: BWEN)
- Cleveland-Cliffs Inc. (NYSE: CLF)
- Polar Power (NASDAQ: POLA)
- Hydrofarm Holdings Group Inc. (NASDAQ: HYFM)
Broadwind is a complete solution and partner to leading OEMs for heavy fabrication. It focuses on gearing and support for the world's largest and toughest applications. In brief, the company is involved in the mining, renewables, infrastructure, and oil and gas industries. It specializes in complex installations and has built some of the world's largest fabricated steel structures and equipment. BWEN stock has been up by over 20% since the start of the week and closed Wednesday's trading session up 7.67% at $6.60 a share.
Last month, the company announced its fourth-quarter and full-year 2020 financial results. In it, Broadwind reported a total revenue of $40.3 million, which is an 18% year-over-year increase. The company also ended the quarter with $24.1 million in cash, a 27% increase compared to a year earlier. The company also noted that it advanced a multi-year strategy to capitalize on favorable secular growth trends. This would include the domestic wind energy market and would further diversify its consolidated revenues into complementary end-markets. Ultimately, would you think that this makes BWEN stock worth buying today?
Cleveland-Cliffs is an industrial company that focuses on the mining, beneficiation, and pelletizing of iron ore. It is also in the steelmaking industry which includes stamping and tooling. It is one of the largest steel producers in North America. Last year, the company acquired two major steelmakers, AK Steel and ArcelorMittal USA, vertically integrating its legacy iron ore business with quality-focused steel production. CLF stock rallied 16.65% into Wednesday's closing bell and currently trades at $20.11.
This latest rally seems to be coming from investors responding to the company's latest press release. In it, the company provided the date for its first-quarter financials and also provided a positive update on its financial guidance. Cleveland-Cliffs expects to make an EBITDA of approximately $500 million for its first quarter of 2021 and expects a full-year EBITDA of approximately $3.5 billion. 2020 was one of the company's most transformational years after two major acquisitions. With that in mind, will you consider buying CLF stock?
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Polar Power is one of the leading providers of power and cooling solutions. In detail, its products are used for telecommunications power and cooling, renewable energy, marine, military applications, and oil fields. Specifically, its DC power systems and solar hybrid power systems are reliable and energy-efficient. POLA stock currently trades at $13.89 and is up by over 186% year-to-date.
The company serves some of the biggest telecommunications players in the market which includes Verizon (NYSE: VZ), AT&T (NYSE: T), and T-Mobile (NASDAQ: TMUS). For the telecommunication industry, Polar Power is involved in 5G deployment and is a backup provider for critical infrastructure play. It also provides nano-grid and micro-grid power generation for small data centers, farms, and storage.
In addition to that, the company's products are also used in EV charging and hybrid vehicles. Its DC backup power systems are known for their energy efficiency and reliability. Given the company's diversified portfolio, will you consider buying POLA stock?
Hydrofarm Holdings Group Inc.
Hydrofarm is a leading independent distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture. This includes grow lights, climate control solutions, growing media, and nutrients. For over 40 years, the company has empowered farmers and cultivators with products that enable greater efficiency and quality. Hydrofarm stock currently trades at $60.32 as of Wednesday's closing bell, ending the day up 13.53%.
Today, the company reported its fourth-quarter and full-year 2020 results, much to investors' delight. For the quarter, Hydrofarm posted a net sales of $87.4 million, which is a 62.6% increase year-over-year. Gross profit for the quarter increased by 190.5% to $16 million. This was certainly an excellent year for the company. Firstly, its organic sales growth was outstanding as it increased each sequential quarter. It also raised its profit margin profile during fiscal 2020 by implementing several management initiatives.
This resulted in a considerable improvement in its earnings. Hydrofarm expects a robust controlled environment agriculture (CEA) industry for 2021. This would result in organic net sales growth that is well above the long-term expectations of the company. With such impressive financials, will you consider HYFM as a top industrial stock to buy?
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