Savvy investors know that you can make money by looking where other investors aren't, and that can mean looking far ahead into a company's future. Today we identified industrial stocks with strong growth on the horizon, backed by firm analyst ratings. We came up with a pretty interesting list of industrial stocks definitely worth more consideration.
Interested in industrial stocks? Do you prefer stocks that are projected to grow over the long term? Do you prefer stocks that analysts rate as 'Buy', or better? We ran a screen you might find helpful.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for industrial stocks. Next, we then screened for businesses that have expected earnings per share growth of more than 25 percent for the next five years(5-year projected EPS Growth Rate>25%). Next, we then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any market caps.
Do you think these stocks should be trading higher? Please use our list to assist with your own analysis.
1) Capstone Turbine Corp. (CPST)
|Industry:||Industrial Electrical Equipment|
Capstone Turbine Corp. has a 5-Year Projected Earnings Per Share Growth Rate of 30.00%, and a Analysts' Rating of 1.60. The short interest was 16.50% as of 06/06/2012. Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power ((CHP)), integrated ((CHP)), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, exhaust ducting, and installation hardware.
2) Franklin Electric Co. Inc. (FELE)
|Industry:||Industrial Electrical Equipment|
Franklin Electric Co. Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 40.00%, and a Analysts' Rating of 2.30. The short interest was 5.12% as of 06/06/2012. Franklin Electric Co., Inc., together with its subsidiaries, engages in the design, manufacture, and distribution of groundwater and fuel pumping systems. It operates in two segments, Water Systems and Fueling Systems. The Water Systems segment provides motors, pumps, electronic controls, and related parts and equipment primarily for use in groundwater, wastewater, and fuel transfer applications.
3) Embraer SA (ERJ)
|Industry:||Aerospace/Defense Products & Services|
Embraer SA has a 5-Year Projected Earnings Per Share Growth Rate of 45.18%, and a Analysts' Rating of 2.30. The short interest was 1.69% as of 06/06/2012. Embraer S.A. develops, produces, and sells jet and turboprop aircrafts for civil and defense aviation markets.
4) Gafisa S.A. (GFA)
Gafisa S.A. has a 5-Year Projected Earnings Per Share Growth Rate of 43.60%, and a Analysts' Rating of 2.00. The short interest was 4.02% as of 06/06/2012. Gafisa S.A. operates as a homebuilder in Brazil. It engages in the development of residential buildings, including luxury buildings comprising swimming pools, gyms, visitor parking, and other amenities for upper-income customers; buildings for middle-income customers; and entry-level housing for lower-income customers. The company's brands include Tenda, which serves the entry-level housing segments; Gafisa that offers various residential options to the mid to higher income segments; and Alphaville, which focuses on the identification, development, and sale of residential communities.
5) Dresser-Rand Group Inc. (DRC)
Dresser-Rand Group Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 28.00%, and a Analysts' Rating of 1.90. The short interest was 2.01% as of 06/06/2012. Dresser-Rand Group Inc., together with its subsidiaries, engages in the design, manufacture, sale, and servicing of custom-engineered rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power, military, and other industries worldwide. It offers various turbo products, such as axial flow compressors, legacy centrifugal compressors, warm-gas expanders, and hot-gas expanders, as well as steam, gas, and power turbines and control systems, which are used in gas lift and injection, gas gathering, CO2 compression for enhanced oil recovery, storage and transmission, synthetic fuels, ethylene, fertilizer, refineries and chemical production, carbon capture and sequestration, and compressed air energy storage applications. The company also provides reciprocating compressors for lower volume/higher compression ratio applications; and steam turbines, including mechanical drive steam turbines and turbine generator sets, which are used primarily to drive pumps, fans, blowers, generators, and compressors.
6) Hardinge Inc. (HDNG)
|Industry:||Machine Tools & Accessories|
Hardinge Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 30.00%, and a Analysts' Rating of 1.00. The short interest was 0.27% as of 06/06/2012. Hardinge Inc., together with its subsidiaries, designs, manufactures, and distributes machine tools in North America, Europe, Asia, internationally. It offers high-precision computer-numerically controlled cutting lathes, machining centers, grinding machines, collets, chucks, index fixtures, and other industrial products, as well as related accessories, including work holding, tool holding, and other industrial support products for companies making parts from hard to machine materials, and small and medium-sized independent job shops. The company also offers post-sale support services, including operation and maintenance training, in-field maintenance, and in-field repair.
7) Allegheny Technologies Inc. (ATI)
Allegheny Technologies Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 37.16%, and a Analysts' Rating of 1.60. The short interest was 3.88% as of 06/06/2012. Allegheny Technologies Incorporated engages in the production of specialty metals worldwide. It operates in three segments: High Performance Metals, Flat-Rolled Products, and Engineered Products. The High Performance Metals segment provides a range of high performance alloys, including nickel- and cobalt-based alloys and super alloys; titanium and titanium-based alloys; exotic metals, such as zirconium, hafnium, niobium, nickel-titanium, and related alloys; and other specialty alloys primarily in long product forms consisting of ingots, billets, bars, shapes and rectangles, rods, wires, seamless tubes, and castings. This segment also offers forged and cast metal components, and machined parts for various load-bearing and fatigue-resisting applications in the jet engine, aerospace, and industrial markets.
8) ADA-ES, Inc. (ADES)
|Industry:||Pollution & Treatment Controls|
ADA-ES, Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 50.00%, and a Analysts' Rating of 2.00. The short interest was 5.51% as of 06/06/2012. ADA-ES, Inc., together with its subsidiaries, provides environmental technologies and specialty chemicals to the coal-burning electric power generation industry in the United States. The company develops and markets refined coal technologies, including leasing of RC facilities for control of nitrous oxides and mercury. It also engages in the development and sale of systems, field testing, chemicals, and services primarily related to control of emissions of mercury, acid gases, sulfur dioxide, and particulate matter for coal and solid fuel fired boilers used in electric generation.
9) Dycom Industries Inc. (DY)
Dycom Industries Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 42.23%, and a Analysts' Rating of 1.80. The short interest was 4.51% as of 06/06/2012. Dycom Industries, Inc. provides specialty contracting services in the United States and Canada. It offers engineering services, including the design of service area concept boxes, terminals, buried and aerial drops, transmission and central office equipment, administration of feeder and distribution cable pairs, and fiber cable routing and design for telephone companies; and make-ready studies, strand mapping, field walk-out, computer-aided radio frequency design and drafting, and fiber cable routing and design for cable television multiple system operators. The company also provides civil and tower construction, lines and antenna installation, and foundation and equipment pad construction for wireless carriers, as well as equipment and material fabrication and site testing services; and installs and maintains customer premise equipment, including digital video recorders, set top boxes, and modems for cable television system operators.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.