Most Important Industrial Stocks for October 2020

The industrial sector includes companies that produce machinery, equipment, and supplies that are used in construction and manufacturing, as well as it includes companies that provide air transportation services such as United Airlines Holdings Inc. Even though each industrial subsector often performs differently, these companies are closely tied to the economy, and their business volume often falls sharply during recessions. Which explains industrial stocks significantly underperformed in the broader market, represented by the Industrial Select Sector SPDR ETF (XLI). The underperformed industrial stocks in the broader market provide investors with a total return of 0.5% compared to the Russell 1000's total return of 13.4% over the past 12 months. In this article, we are going to review the most important industrial stocks sorted by its best value, fastest earnings growth, and greatest momentum. All statistics in the tables below are as of September 28.  

Industrial Stocks Sorted by its Market Value

	Price ($)	Market Cap ($B)	12-Month Trailing P/E Ratio
GrafTech International Ltd. (EAF)	7.17	1.9	3.6
Air Lease Corp. (AL)	28.00	3.2	5.4
Huntington Ingalls Industries Inc. (HII)	141.22	5.7	11.0

GrafTech International Ltd.: Is a manufacturer of graphite electrodes and petroleum needle coke, energy solutions for making steel, silicon metal, electronics, aluminum, and automotive. Due to the low demand for steel production the company's sales reduced causing a 41.6% year-over-year (YOY) decline in net sales and a 52.8% drop in net income in Q2 2020. Air Lease Corp.: An aircraft leasing company that is also involved in the purchase, sale, and leasing of commercial aircraft and works with clients around the world. Huntington Ingalls Industries Inc.: Huntington Ingalls Industries is America’s largest military shipbuilding company that provides professional services to partners in government and industry, as well as providing fleet support, oil and gas services. The Covid-19 pandemic had a major impact on the company causing a decline in the company's YOY revenue by 7.4%  and a 58.6% drop in net earnings, in Q2 2020. The company attributed decreases in the quarter to "updated cost and schedule assumptions across all programs,"  

Industrial Stocks Sorted by its Fastest Growth

	Price ($)	Market Cap ($B)	EPS Growth %
Energizer Holdings Inc. (ENR)	39.41	2.7	850.0
Quanta Services Inc. (PWR)	51.71	7.2	173.7
Vertiv Holdings Co. (VRT)	16.82	5.5	166.7

Energizer Holdings Inc.: Is one of the world's largest manufacturers of batteries. Through subsidiaries, the company offers alkaline, rechargeable, miniature, and carbon zinc batteries, as well as lighting products, razors, and flashlights. Quanta Services Inc.: An American corporation that provides infrastructure services for electric power, pipeline, industrial, and communications industries. Vertiv Holdings Co.: Based in Ohio, the company provides electrical power equipment, racks and enclosures, thermal management, and related tools and services. Even though the decline in the company's YOY net sales in Q2 2020 by 11.3%, lower interest costs, and operating expenses helped it to post $26.2 million in net income compared with a loss a year earlier.  

Industrial Stocks Sorted by its Most Momentum

	Price ($)	Market Cap ($B)	12-Month Trailing Total Return
Generac Holdings Inc. (GNRC)	180.66	11.3	123.5
FedEx Corp. (FDX)	250.17	65.7	73.1
Vertiv Holdings Co. (VRT)	16.82	5.5	64.3
Russell 1000	N/A	N/A	13.4
Industrial Select Sector SPDR ETF (XLI)	N/A	N/A	0.5

Generac Holdings Inc.: Is an American manufacturer of automatic, portable, and stationary standby generators. In August, the company announced plans to add new products to its PWRcell product line, which would make Generac the first company to provide intelligently managed, whole-home solar backup power to the entire home. FedEx Corp.: Headquartered in Memphis, Tennessee, the company offers express delivery, less-than-truckload (LTL) freight delivery, ground delivery, supply chain management services, and a variety of other services.   Source: Investopedia  

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