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In the short run the global economy may remain weak meaning that industrials may not be a highly sought after place in the market. Still, that's exactly why we are looking at the industrial sector. While the investment community may continue to be paralyzed with the idea of global economic uncertainty, we see it as a basic opportunity to look for interesting situations. In particular, today we indentified some industrial stocks that have actually been able to post strong top line growth but remain undervalued from a price-multiple perspective, which in our view means they should be given a closer inspection.

The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let’s an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm’s sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear.

We use the 1-Year Fiscal Revenue Growth Rate because it represents a firm’s growth over an extended period of time. This is one of many great metrics to use when trying to identify which firms are navigating the global economic well & generating positive growth trends.

We first looked for industrial stocks trading at a discount (P/S<1). From this narrowed list of candidates we then looked for companies that have posted sound top line growth (1-year fiscal revenue growth>10%). We did not screen out any market caps.

The list is ranked from highest to lowest by the 1-year fiscal revenue growth rate:

1. Triumph Group, Inc. (TGI)

Sector

Industrials

Industry

Aerospace & Defense

Market Cap

$2,824M

Beta

1.16

The company Triumph Group, Inc., through its subsidiaries, engages in the design, engineering, manufacture, repair, overhaul, and distribution of aerostructures, aircraft components, accessories, subassemblies, and systems worldwide. TGI has a P/S ratio of 0.88 & a 1-year fiscal revenue growth rate of 124.39%. The short interest was 10.50% as of 10/14/2011.

2. Oshkosh Corporation. (OSK)

Sector

Industrials

Industry

Truck Manufacturing

Market Cap

$1,925M

Beta

2.63

The company Oshkosh Corporation designs, manufactures, and markets a range of access equipment, specialty vehicles, and vehicle bodies worldwide. OSK has a P/S ratio of 0.26 & a 1-year fiscal revenue growth rate of 87.36%. The short interest was 5.60% as of 10/14/2011.

3. China Eastern Airlines Corp. (CEA)

Sector

Industrials

Industry

Airlines

Market Cap

$4,567M

Beta

2.24

The company China Eastern Airlines Corporation Limited, together with its subsidiaries, operates in civil aviation industry. CEA has a P/S ratio of 0.36 & a 1-year fiscal revenue growth rate of 84.87%. The short interest was N/A as of 10/14/2011.

4. Echo Global Logistics, Inc. (ECHO)

Sector

Industrials

Industry

Integrated Shipping & Logistics

Market Cap

$347M

Beta

0.70

The company Echo Global Logistics, Inc. provides technology enabled transportation and supply chain management services in the United States. ECHO has a P/S ratio of 0.68 & a 1-year fiscal revenue growth rate of 64.27%. The short interest was 20.80% as of 10/14/2011.

5. EnerNOC, Inc. (ENOC)

Sector

Industrials

Industry

Business Services

Market Cap

$272M

Beta

0.62

The company EnerNOC, Inc. engages in the development, implementation, and adoption of energy management applications and services, and demand response for smart grid operators and electric utilities, as well as for commercial, institutional, and industrial end-users of electricity in the United States. TICKER has a P/S ratio of 0.98 & a 1-year fiscal revenue growth rate of 46.93%. The short interest was N/A as of 10/14/2011.

6. Xerox Corporation. (XRX)

Sector

Industrials

Industry

Business Equipment

Market Cap

$11,734M

Beta

1.79

The company Xerox Corporation engages in the development, manufacture, marketing, service, and finance of document equipment, software, solutions, and services worldwide. TICKER has a P/S ratio of 0.53& a 1-year fiscal revenue growth rate of 0.53%. The short interest was 1.30% as of 10/14/2011.

7. United Continental Holdings In. (UAL)

Sector

Industrials

Industry

Airlines

Market Cap

$6,194M

Beta

1.85

The company United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. TICKER has a P/S ratio of 0.19& a 1-year fiscal revenue growth rate of 42.20%. The short interest was 11.90% as of 10/14/2011.

8. China Southern Airlines Company. (ZNH)

Sector

Industrials

Industry

Airlines

Market Cap

$5,415M

Beta

1.75

The company China Southern Airlines Company Limited provides commercial airline services in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. TICKER has a P/S ratio of 0.38& a 1-year fiscal revenue growth rate of 39.58%. The short interest was #% as of 10/14/2011.

9. Korn/Ferry International. (KFY)

Sector

Industrials

Industry

Staffing & Outsourcing Services

Market Cap

$795M

Beta

1.75

The company Korn/Ferry International, together with its subsidiaries, provides executive recruitment, outsourced recruiting and leadership, and talent consulting and talent acquisition solutions. KFY has a P/S ratio of 0.96& a 1-year fiscal revenue growth rate of 29.45%. The short interest was 6.00% as of 10/14/2011.

10. Timken Company. (TKR)

Sector

Industrials

Industry

Tools & Accessories

Market Cap

$4,314M

Beta

2.08

The company The Timken Company develops, manufactures, markets, and sells anti-friction bearings and related products and steel products primarily in the United States and Europe. TICKER has a P/S ratio of 0.87 & a 1-year fiscal revenue growth rate of 29.09%. The short interest was 1.50% as of 10/14/2011.

We hope this list helps as investors do their own due diligence and research on industrial stocks.

*Company profiles were sourced from Finviz.

Source: 10 Cheap, Industrial Stocks With Impressive Revenue Growth Despite A Weak Economy