Mid-cap companies offer an exciting proposition for investors. They aren't quite large caps, so they still have room to grow, and yet they provide some of the possible high rewards of their riskier, smaller cap peers. Today, we focus on industrial companies in the mid-cap range that have plenty of liquid assets, which could be used to fuel the company to new heights and valuations over time. As one way to sort the wheat from the chaff, we focus further by looking only at companies that industry analysts have rated positively recently. Taking these ideas in mind, we arrived at a pretty interesting list of stocks.
Are you looking for mid-sized companies that still have room to grow? Interested in gaining exposure to industrial companies? Do you prefer investing in stocks that analysts have weighed in on? Company liquidity is an important consideration in any stock analysis. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Are these the types of stocks that you're looking for? You might be interested in this list.
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 mid cap industrial stocks. We then looked for companies that analysts rate as "Buy" (2 < mean recommendation < 3). We then screened for businesses that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2).
Do you think these mid-cap stocks have a strong outlook? Use our list along with your own analysis.
1) IDEX Corporation (NYSE:IEX)
IDEX Corporation has a Analysts' Rating of 1.70, a Current Ratio of 3.33, and a Quick Ratio of 2.31. The short interest was 2.42% as of 06/22/2012. IDEX Corporation manufactures and sells various pumps, flow meters, other fluidics systems and components, and engineered products worldwide. The company's Fluid & Metering Technologies segment offers positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems, as well as provides flow monitoring and other services for the water and wastewater industries. This segment serves industrial infrastructure, chemical processing, agricultural, food and beverage, pulp and paper, transportation, plastics and resins, electronics and electrical, construction and mining, pharmaceutical and bio-pharmaceutical, and machinery markets.
2) Snap-on Inc. (NYSE:SNA)
|Industry:||Small Tools & Accessories|
Snap-on Inc. has a Analysts' Rating of 1.60, a Current Ratio of 2.71, and a Quick Ratio of 2.01. The short interest was 3.55% as of 06/22/2012. Snap-on Incorporated provides tools, equipment, diagnostics, repair information, and systems solutions for professional users. Its products include hand tools, such as wrenches, screwdrivers, sockets, pliers, ratchets, saws and cutting tools, pruning tools, and torque measuring instruments; power tools comprising pneumatic, hydraulic, cordless, and corded tools; and tool storage products consisting of tool chests, roll cabinets, and tool control systems. The company's diagnostics and repair information products include handheld and PC-based diagnostics products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems, business services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics to manage and track performance. Snap-on Incorporated's equipment products comprise solutions for the diagnosis and service of automotive and industrial equipment, such as wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane systems, collision repair equipment, air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists.
3) Quanta Services, Inc. (NYSE:PWR)
Quanta Services, Inc. has a Analysts' Rating of 1.80, a Current Ratio of 2.32, and a Quick Ratio of 2.23. The short interest was 2.29% as of 06/22/2012. Quanta Services, Inc. provides specialty contracting services primarily in North America. The company's Electric Power Infrastructure Services segment designs, installs, upgrades, repairs, and maintains electric power transmission and distribution networks, and substation facilities; renewable energy generation facilities; and offers emergency restoration services, including repairing infrastructure to the electric power industry. Its Natural Gas and Pipeline Infrastructure Services segment designs, installs, repairs, and maintains natural gas and oil transmission and distribution systems, compressor and pump stations, and gas gathering systems, as well as offers related trenching, directional boring, and automatic welding services; and pipeline protection, integrity testing, rehabilitation and replacement, and fabrication of pipeline support systems, and related structures and facilities.
4) CLARCOR Inc. (NYSE:CLC)
CLARCOR Inc. has a Analysts' Rating of 2.30, a Current Ratio of 4.28, and a Quick Ratio of 2.76. The short interest was 4.71% as of 06/22/2012. CLARCOR Inc. provides filtration products, filtration systems and services, and consumer and industrial packaging products worldwide. Its Engine/Mobile Filtration segment offers oil, air, fuel, coolant, transmission, and hydraulic fluid filters for engines used in stationary power generation and for engines in mobile equipment applications, including trucks, automobiles, buses, and locomotives, as well as marine, construction, industrial, mining, and agricultural equipment. The company's Industrial/Environmental Filtration segment manufactures specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters, and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment, and water recycling; bilge water separators; sand control filters for oil and gas drilling; and woven wire and metallic products for filtration of plastics and polymer fibers.
5) Valmont Industries, Inc. (NYSE:VMI)
Valmont Industries, Inc. has a Analysts' Rating of 1.90, a Current Ratio of 3.22, and a Quick Ratio of 2.13. The short interest was 2.19% as of 06/22/2012. Valmont Industries, Inc. produces and sells fabricated metal products, pole and tower structures, and mechanized irrigation systems in the United States and internationally. The company's Engineered Infrastructure Products segment offers steel and aluminum poles and structures, to which lighting and traffic control fixtures are attached for applications in streets, highways, parking lots, sports stadiums, and commercial and residential developments; and roadway safety systems, including guard rail barrier systems, wire rope safety barriers, and crash attenuation barriers to redirect vehicles and to prevent collisions between vehicles. This segment also provides structures and components for the wireless communication market, as well as for the erection of infrastructure, industrial, and commercial access systems.
6) Clean Harbors, Inc. (NYSE:CLH)
Clean Harbors, Inc. has a Analysts' Rating of 2.10, a Current Ratio of 2.58, and a Quick Ratio of 2.41. The short interest was 6.12% as of 06/22/2012. Clean Harbors, Inc., through its subsidiaries, provides environmental, energy, and industrial services. Its Technical Services segment offers hazardous material management services, including the packaging, collection, transportation, treatment, and disposal of hazardous and non-hazardous waste; and CleanPack services comprising the collection, identification, categorization, specialized packaging, transportation, and disposal of laboratory chemicals and household hazardous wastes. The company's Field Services segment offers various environmental cleanup services on customer sites or other locations on a scheduled or emergency response basis, including tank cleaning, decontamination, remediation, spill cleanup; used oil and oil products recycling; polychlorinated biphenyls management and disposal; and filtration and water treatment services.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.