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When it's uncertain where the global economy is headed, industrial stocks are not exactly the most sought after of sectors. However, savvy investors know that you can make money by looking where other investors aren't. That's exactly why we screened for industrial stocks. Today we identified some industrial stocks with strong cash reserves, meaning that these companies are well positioned to cover their expenses and possibly make strategic investments or acquisitions. But money in hand isn't enough to warrant investment; we also looked for companies with the highest analyst ratings. Under these criteria, we came up with a pretty interesting list of industrial stocks.

The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

We first looked for industrial stocks. Next, we then screened for businesses that have strong liquidity (Current Ratio>2)(Quick Ratio>2). We next screened for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We did not screen out any market caps.

Do you think these stocks should be priced higher? Use our list along with your own analysis.

1) LSB Industries Inc. (NYSE:LXU)

Sector:Industrial Goods
Industry:General Building Materials
Market Cap:$626.41M
Beta:1.67

LSB Industries Inc. has a Current Ratio of 3.68 and Quick Ratio of 2.90 and Analysts' Rating of 1.30. The short interest was 2.86% as of 05/29/2012. LSB Industries, Inc., through its subsidiaries, engages in the manufacture and sale of geothermal and water source heat pumps, air handling products, and chemical products. The company operates in two segments, Climate Control Business and Chemical Business. The Climate Control Business segment manufactures and sells heating, ventilation, and air conditioning (HVAC) products that include geothermal and water source heat pumps; hydronic fan coils; and other HVAC products, such as custom air handlers and modular geothermal chillers.

2) Graham Corp. (NYSE:GHM)

Sector:Industrial Goods
Industry:Metal Fabrication
Market Cap:$181.31M
Beta:2.10

Graham Corp. has a Current Ratio of 3.38 and Quick Ratio of 3.12 and Analysts' Rating of 1.30. The short interest was 5.09% as of 05/29/2012. Graham Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of vacuum and heat transfer equipment worldwide. It offers heat transfer equipment, including surface condensers, water heaters, and various types of heat exchangers comprising helical coil heat exchangers marketed under the Heliflow name, and plate and frame exchangers; and vacuum equipment, such as steam jet ejector vacuum systems and liquid ring vacuum pumps. The company also supplies components and raw materials for the nuclear power generating market; and services and sells spare parts for its equipment. Its products are used in various industrial process applications, including fertilizer plants, petrochemical intermediate plants, coals-to-chemicals plants, gas-to-liquids plants, and ethylene, methanol and, nitrogen producing plants, as well as plastics, resins, and fibers plants; nuclear power generation, fossil fuel plants, biomass plants, cogeneration power plants, geothermal power plants, and ethanol plants; propulsion systems for nuclear aircraft carriers and other nuclear powered vessels; soap manufacturing plants, food processing plants, pharmaceutical plants, and liquefied natural gas production facilities.

3) Unifi Inc. (NYSE:UFI)

Sector:Industrial Goods
Industry:Textile Industrial
Market Cap:$225.61M
Beta:1.84

Unifi Inc. has a Current Ratio of 4.37 and Quick Ratio of 2.48 and Analysts' Rating of 1.00. The short interest was 2.98% as of 05/29/2012. Unifi, Inc., together with its subsidiaries, processes and sells polyester and nylon yarns. The company provides polymer beads, partially oriented, textured, solution and package dyed, twisted, and beamed polyester yarns; and textured, solution dyed, and covered spandex nylon yarns. It offers yarns under the Repreve, aio, Sorbtek, A.

4) LSI Industries Inc. (NASDAQ:LYTS)

Sector:Industrial Goods
Industry:Industrial Electrical Equipment
Market Cap:$155.47M
Beta:1.56

LSI Industries Inc. has a Current Ratio of 4.87 and Quick Ratio of 2.88 and Analysts' Rating of 1.00. The short interest was 3.00% as of 05/29/2012. LSI Industries Inc. provides corporate visual image solutions in the United States, Canada, Australia, Latin America, Europe, and the Middle East. The company manufactures and markets outdoor and indoor lighting products for the commercial, industrial, and multi-site retail lighting markets, including the petroleum/convenience store market. Its lighting products include exterior area lighting, interior lighting, canopy lighting, landscape lighting, light emitting diode (LED) lighting, light poles, lighting analysis, and photometric layouts.

5) Robbins & Myers Inc. (NYSE:RBN)

Sector:Industrial Goods
Industry:Diversified Machinery
Market Cap:$2.01B
Beta:1.19

Robbins & Myers Inc. has a Current Ratio of 3.09 and Quick Ratio of 2.17 and Analysts' Rating of 1.50. The short interest was 4.49% as of 05/29/2012. Robbins & Myers, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of engineered, application-critical equipment and systems for the energy, industrial, chemical, and pharmaceutical markets worldwide. The company's Fluid Management segment designs, manufactures, markets, repairs, and services equipment and systems for use in oil and gas exploration and recovery, specialty chemical, wastewater treatment, and other industrial applications. This segment's products and systems include hydraulic drilling power sections; blow-out preventers; pressure control systems; wellhead equipment; frac manifolds and trees; high pressure engineered gate valves; down-hole and industrial progressing cavity pumps and related products, such as grinders for applications involving the flow of slurries and sludge; fluid-agitation equipment and systems; and various ancillary equipment for the energy sector consisting of rod guides, rod and tubing rotators, wellhead systems, pipeline closure products, and valves.

6) CECO Environmental Corp. (NASDAQ:CECE)

Sector:Industrial Goods
Industry:Pollution & Treatment Controls
Market Cap:$104.46M
Beta:1.28

CECO Environmental Corp. has a Current Ratio of 2.53 and Quick Ratio of 2.32 and Analysts' Rating of 1.50. The short interest was 0.16% as of 05/29/2012. CECO Environmental Corp. provides air-pollution control technology products and services worldwide. The company offers engineered equipment, cyclones, scrubbers, dampers, diverters, regenerative thermal oxidizers, component parts, and monitoring and managing services. Its Engineered Equipment Technology and Parts Group segment provides air handling equipment and systems for filtering, cooling, heating, and capturing emissions in the metal industries; systems for corrosion protection, fugitive emissions control, evaporative cooling, and other ventilation and air handling applications; and fume exhaust systems that provide control of oil mist and fumes, as well as remove liquid particles and vapor phase emissions from rolling mill, machining, and other oil mist generating processes.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.

Source: 6 Industrial Small Caps With Strong Cash Reserves And Even Stronger Analyst Ratings