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Targeting mid-cap companies is always an interesting endeavor. Mid-caps aren't quite large caps, so they offer room for growth, but they can also provide higher rewards, often found among their smaller cap peers. This is especially true in the industrial space, where the success of companies can ebb and flow with the changing tides of the global economy. One smart area to search in the industrial arena is among companies whose fundamental metrics suggest that they are trading below their true worth. It's even better to look among those stocks for only the companies that industry analysts have rated positively recently, and recommended as 'Buy'. Today we screened for companies with these traits, and we arrived at a compelling list of industrial stocks.

The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number the more a firm is financing its assets internally through stockholder equity. The higher this metric is the more the firm is relying on debt to finance its assets.

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 lets an investor know how much the investment community is willing to pay for every dollar's 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. Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share

We first looked for mid cap industrial stocks. We then looked for companies with a low price-multiple premium (forward P/E<10)(P/S<1). Next, we then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3).

Do you think these mid-cap stocks will outperform? Use this list as a starting-off point for your own analysis.

1) Allegheny Technologies Inc. (NYSE:ATI)

Sector:Industrial Goods
Industry:Metal Fabrication
Market Cap:$3.30B
Beta:1.79

Allegheny Technologies Inc. has a Forward Price/Earnings Ratio of 8.47, a Price/Sales Ratio of 0.62, and a Analysts' Rating of 1.50. The short interest was 3.80% as of 07/22/2012. 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.

2) Crane Co. (NYSE:CR)

Sector:Industrial Goods
Industry:Diversified Machinery
Market Cap:$2.23B
Beta:1.65

Crane Co. has a Forward Price/Earnings Ratio of 8.81, a Price/Sales Ratio of 0.86, and a Analysts' Rating of 1.90. The short interest was 0.49% as of 07/22/2012. Crane Co. manufactures and sells engineered industrial products in the United States and internationally. The company operates in five segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling, and Controls. The Aerospace & Electronics segment offers pressure, fuel flow, and position sensors and subsystems; brake control systems; coolant, lube and fuel pumps; and seat actuation products.

3) Spirit AeroSystems Holdings Inc (NYSE:SPR)

Sector:Industrial Goods
Industry:Aerospace/Defense Products & Services
Market Cap:$3.25B
Beta:1.38

Spirit AeroSystems Holdings Inc has a Forward Price/Earnings Ratio of 8.65, a Price/Sales Ratio of 0.64, and a Analysts' Rating of 2.10. The short interest was 3.39% as of 07/22/2012. Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems.

4) Veolia Environnement S.A. (NYSE:VE)

Sector:Industrial Goods
Industry:Waste Management
Market Cap:$5.67B
Beta:1.80

Veolia Environnement S.A. has a Forward Price/Earnings Ratio of 8.55, a Price/Sales Ratio of 0.16, and a Analysts' Rating of 2.00. The short interest was 0.17% as of 07/22/2012. Veolia Environnement S.A. provides environmental management services to public authorities, industrial and commercial services customers, and individuals worldwide. The company's Water segment offers water and wastewater services, including the management and operation of large-scale and customized drinking water plants, wastewater decontamination and recycling plants, drinking water distribution networks, and wastewater collection networks. This segment also designs/builds infrastructure necessary to provide water services; manufactures, installs, and operates modular standardized and semi-standardized equipment; maintains and services the installations; and treats groundwater, surface water, brackish or seawater, wastewater, and refined sludge.

5) Owens Corning (NYSE:OC)

Sector:Industrial Goods
Industry:General Building Materials
Market Cap:$3.43B
Beta:2.14

Owens Corning has a Forward Price/Earnings Ratio of 9.63, a Price/Sales Ratio of 0.63, and a Analysts' Rating of 1.60. The short interest was 6.45% as of 07/22/2012. Owens Corning engages in the provision of composite and building materials systems worldwide. It operates in two segments, Composites and Building Materials. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, mat, veil, and other specialized products.

6) McDermott International Inc. (NYSE:MDR)

Sector:Industrial Goods
Industry:Heavy Construction
Market Cap:$2.70B
Beta:1.56

McDermott International Inc. has a Forward Price/Earnings Ratio of 9.70, a Price/Sales Ratio of 0.82, and a Analysts' Rating of 2.00. The short interest was 2.55% as of 07/22/2012. McDermott International, Inc. operates as an engineering, procurement, construction, and installation [EPCI] company worldwide. It focuses on designing and executing complex offshore oil and gas projects. The company offers EPCI services for offshore oil and gas field developments; and delivers fixed and floating production facilities, pipelines, and subsea systems from concept to commissioning.

7) Triumph Group, Inc. (NYSE:TGI)

Sector:Industrial Goods
Industry:Aerospace/Defense Products & Services
Market Cap:$3.02B
Beta:1.16

Triumph Group, Inc. has a Forward Price/Earnings Ratio of 9.61, a Price/Sales Ratio of 0.88, and a Analysts' Rating of 1.80. The short interest was 2.95% as of 07/22/2012. 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. Its Aerostructures Group segment designs, manufactures, builds, and repairs acoustic and thermal insulation systems, aircraft wings, composite and metal bonding, composite ducts and floor panels, empennages, engine nacelles, flight control surfaces, floor beams, fuselage sections, helicopter cabins, stretch-formed leading edges and fuselage skins, windows and window assemblies, and wing spars and stringers. The company's Aerospace Systems Group segment designs and engineers aircraft and engine mounted accessory drives, cargo hooks, cockpit control levers, control system valve bodies, exhaust nozzles and ducting, geared transmissions, heat exchangers, high lift actuation products, hydraulic systems and components, landing gear actuation systems, landing gear components and assemblies, main engine gear box assemblies, secondary flight control systems, and vibration absorbers.

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

Source: 7 Mid Cap Industrial Stocks Trading Cheaply In Spite Of Analyst Favor