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Are you looking to increase your exposure to the industrial goods sector? Then this may be an interesting list for you.

To compile this list we looked for stocks with the following characteristics:

  • With significant exposure to the industrial goods sector
  • Volume of daily traded shares above 100K
  • Significantly undervalued relative to analysts’ estimates

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Given this information, which of these stocks do find to be a better candidate for your portfolio?

1. Capstone Turbine Corp. (CPST): Industrial Electrical Equipment Industry. Market cap of $393.57M. According to analysts' estimates, this stock has 39.52% of potential upside - given its price of $1.67 and analysts' target of $2.33. The stock is a short squeeze candidate, with a short float at 16.7% (equivalent to 8.82 days of average volume). The stock has performed poorly over the last month, losing 11.6%.

2. Actuant Corporation (ATU): Diversified Machinery Industry. Market cap of $1.60B. According to analysts' estimates, this stock has 39.43% of potential upside - given its price of $22.95 and analysts' target of $32.0. The stock is a short squeeze candidate, with a short float at 13.5% (equivalent to 12.2 days of average volume).

3. Standard Pacific Corp. (SPF): Residential Construction Industry. Market cap of $742.37M. According to analysts' estimates, this stock has 39.28% of potential upside - given its price of $3.59 and analysts' target of $5.0. This is a risky stock that is significantly more volatile than the overall market (beta = 2.27). The stock is a short squeeze candidate, with a short float at 14.57% (equivalent to 13.74 days of average volume).

4. Daktronics Inc. (DAKT): Industrial Electrical Equipment Industry. Market cap of $454.67M. According to analysts' estimates, this stock has 38.63% of potential upside - given its price of $10.64 and analysts' target of $14.75. The stock is a short squeeze candidate, with a short float at 6.18% (equivalent to 11.6 days of average volume). The stock has had a couple of great days, gaining 7.15% over the last week.

5. Ameresco, Inc. (AMRC): Industrial Electrical Equipment Industry. Market cap of $579.28M. According to analysts' estimates, this stock has 38.16% of potential upside - given its price of $13.13 and analysts' target of $18.14. The stock is currently stuck in a downtrend, trading -11.3% below its SMA20, -12.03% below its SMA50, and -7.37% below its SMA200. It's been a rough couple of days for the stock, losing 7.22% over the last week.

6. Ceradyne Inc. (CRDN): Industrial Equipment & Components Industry. Market cap of $1.04B. According to analysts' estimates, this stock has 38.06% of potential upside - given its price of $40.8 and analysts' target of $56.33. After a solid performance over the last year, CRDN has pulled back during recent sessions. The stock has performed poorly over the last month, losing 10.63%.

7. United States Steel Corp. (X): Metal Fabrication Industry. Market cap of $6.22B. According to analysts' estimates, this stock has 37.59% of potential upside - given its price of $42.88 and analysts' target of $59.0. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock has gained 3.52% over the last year.

8. AAR Corp. (AIR): Aerospace/Defense Products & Services Industry. Market cap of $1.01B. According to analysts' estimates, this stock has 37.41% of potential upside - given its price of $25.37 and analysts' target of $34.86. The stock is a short squeeze candidate, with a short float at 6.84% (equivalent to 10.82 days of average volume). The stock has gained 39.23% over the last year.

9. GrafTech International Ltd. (GTI): Industrial Electrical Equipment Industry. Market cap of $2.89B. According to analysts' estimates, this stock has 37.11% of potential upside - given its price of $19.24 and analysts' target of $26.38. This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock is a short squeeze candidate, with a short float at 7.98% (equivalent to 7.84 days of average volume). The stock has gained 28.0% over the last year.

10. Chart Industries Inc. (GTLS): Metal Fabrication Industry. Market cap of $1.40B. According to analysts' estimates, this stock has 36.5% of potential upside - given its price of $46.8 and analysts' target of $63.88. This is a risky stock that is significantly more volatile than the overall market (beta = 2.57). The stock has gained 176.49% over the last year.

11. Insituform Technologies Inc. (INSU): Heavy Construction Industry. Market cap of $949.73M. According to analysts' estimates, this stock has 36.41% of potential upside - given its price of $23.87 and analysts' target of $32.56. The stock is a short squeeze candidate, with a short float at 12.3% (equivalent to 18.02 days of average volume). It's been a rough couple of days for the stock, losing 6.05% over the last week.

12. Belden, Inc. (BDC): Industrial Electrical Equipment Industry. Market cap of $1.58B. According to analysts' estimates, this stock has 35.21% of potential upside - given its price of $32.97 and analysts' target of $44.58. It's been a rough couple of days for the stock, losing 6.12% over the last week.

13. Caterpillar Inc. (CAT): Farm & Construction Machinery Industry. Market cap of $65.18B. According to analysts' estimates, this stock has 35.01% of potential upside - given its price of $99.79 and analysts' target of $134.73. The stock has gained 78.75% over the last year.

14. Mueller Water Products, Inc. (MWA): Industrial Equipment & Components Industry. Market cap of $598.60M. According to analysts' estimates, this stock has 33.33% of potential upside - given its price of $3.78 and analysts' target of $5.04. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock is a short squeeze candidate, with a short float at 6.2% (equivalent to 7.71 days of average volume).

15. MasTec, Inc. (MTZ): Heavy Construction Industry. Market cap of $1.51B. According to analysts' estimates, this stock has 33.19% of potential upside - given its price of $18.5 and analysts' target of $24.64. The stock is a short squeeze candidate, with a short float at 9.04% (equivalent to 5.26 days of average volume). The stock has gained 78.04% over the last year.

16. Orbital Sciences Corp. (ORB): Aerospace/Defense Products & Services Industry. Market cap of $1.05B. According to analysts' estimates, this stock has 33.05% of potential upside - given its price of $17.85 and analysts' target of $23.75. The stock has gained 19.85% over the last year.

17. Cummins Inc. (CMI): Diversified Machinery Industry. Market cap of $19.90B. According to analysts' estimates, this stock has 33.0% of potential upside - given its price of $100.0 and analysts' target of $133.0. The stock has gained 54.5% over the last year.

18. Briggs & Stratton Corp. (BGG): Diversified Machinery Industry. Market cap of $970.27M. According to analysts' estimates, this stock has 32.54% of potential upside - given its price of $19.24 and analysts' target of $25.5. The stock is a short squeeze candidate, with a short float at 16.12% (equivalent to 22.59 days of average volume). It's been a rough couple of days for the stock, losing 5.64% over the last week.

19. Snap-on Inc. (SNA): Small Tools & Accessories Industry. Market cap of $3.32B. According to analysts' estimates, this stock has 32.22% of potential upside - given its price of $56.82 and analysts' target of $75.13. The stock has gained 38.02% over the last year.

20. Chicago Bridge & Iron Company N.V. (CBI): General Contractors Industry. Market cap of $3.66B. According to analysts' estimates, this stock has 32.17% of potential upside - given its price of $35.38 and analysts' target of $46.76. This is a risky stock that is significantly more volatile than the overall market (beta = 2.25). The stock has gained 101.37% over the last year.

21. AGCO Corporation (AGCO): Farm & Construction Machinery Industry. Market cap of $4.67B. According to analysts' estimates, this stock has 32.0% of potential upside - given its price of $48.91 and analysts' target of $64.56. The stock has gained 83.93% over the last year.

22. Woodward, Inc. (WWD): Industrial Electrical Equipment Industry. Market cap of $2.21B. According to analysts' estimates, this stock has 32.0% of potential upside - given its price of $31.25 and analysts' target of $41.25. The stock is currently stuck in a downtrend, trading -9.7% below its SMA20, -9.21% below its SMA50, and -6.16% below its SMA200.

23. Timken Co. (TKR): Machine Tools & Accessories Industry. Market cap of $4.83B. According to analysts' estimates, this stock has 31.91% of potential upside - given its price of $49.17 and analysts' target of $64.86. The stock has gained 83.45% over the last year.

24. Hillenbrand, Inc. (HI): Industrial Equipment & Components Industry. Market cap of $1.38B. According to analysts' estimates, this stock has 31.64% of potential upside - given its price of $22.03 and analysts' target of $29.0. The stock has gained 0.73% over the last year.

25. Flowserve Corp. (FLS): Diversified Machinery Industry. Market cap of $6.32B. According to analysts' estimates, this stock has 31.51% of potential upside - given its price of $112.35 and analysts' target of $147.75. The stock has gained 29.78% over the last year.

26. Quanta Services, Inc. (PWR): General Contractors Industry. Market cap of $4.04B. According to analysts' estimates, this stock has 31.25% of potential upside - given its price of $18.56 and analysts' target of $24.36. The stock has lost 8.62% over the last year.

27. CNH Global NV (CNH): Farm & Construction Machinery Industry. Market cap of $9.68B. According to analysts' estimates, this stock has 31.15% of potential upside - given its price of $39.78 and analysts' target of $52.17. This is a risky stock that is significantly more volatile than the overall market (beta = 2.55). The stock has performed poorly over the last month, losing 10.29%.

28. EMCOR Group Inc. (EME): General Contractors Industry. Market cap of $1.95B. According to analysts' estimates, this stock has 31.0% of potential upside - given its price of $29.16 and analysts' target of $38.2. The stock is a short squeeze candidate, with a short float at 6.08% (equivalent to 9.16 days of average volume). The stock has gained 22.76% over the last year.

29. Spirit AeroSystems Holdings Inc (SPR): Aerospace/Defense Products & Services Industry. Market cap of $3.05B. According to analysts' estimates, this stock has 30.95% of potential upside - given its price of $21.1 and analysts' target of $27.63. The stock has performed poorly over the last month, losing 12.%.

30. Kaydon Corporation (KDN): Machine Tools & Accessories Industry. Market cap of $1.11B. According to analysts' estimates, this stock has 30.59% of potential upside - given its price of $34.0 and analysts' target of $44.4. The stock is currently stuck in a downtrend, trading -7.47% below its SMA20, -9.89% below its SMA50, and -8.% below its SMA200. The stock has lost 3.09% over the last year.

*Data sourced from Finviz.

Source: 30 Most Undervalued Industrial Stocks by Analyst Target Price