READ ALSO: Whats Ahead for Office in 2022. Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. Lockheed Martin Unless otherwise noted, the opinions provided are those of the author and not necessarily those of Fidelity Investments or its affiliates. "The new fire assembly is expected to generate strong customer interest in the back half of 2022," Missad said. The company also plans to separate its tech-enabled brokered transportation services from its LTL business in North America. They have a Buy rating on UFPI. Select 2021 Transactions by the Harris Williams Industrials Group, 2022 Outlook | Insights From Our Industry Groups. XPO Logistics (XPO, $46.01) is shedding some of its load as it shifts its diversified transportation business model to a less-than-truckload (LTL) carrier. 24% gain. He has a Buy rating on the industrial stock and says the "recent share price weakness offers a buying opportunity." A massive race for space. e.g. While " management continues to take steps to structurally improve profitability through JobStack and centralization efforts that could yield material savings in 2023 and beyond," the analyst also thinks TBI is attractively valued at current levels. Virtual Assistant is Fidelitys automated natural language search engine to help you find information on the Fidelity.com site. Griffon (GFF, $29.63) is making moves to ensure that it remains one of the best industrial stocks for investors. Marcon has an Outperform rating on TBI. The Atlanta, Georgia-based liquified natural gas (LNG) equipment-maker and industrial gas technology company is expected to experience high single-digit to low double-digit growth for the next decade supplying the rapidly growing LNG and hydrogen industries. PeopleManagement, offers contingent, on-site industrial staffing and commercial driver services and is one of TrueBlue's three business segments. You should begin receiving the email in 710 business days. For M&A investors, 2021 will be a year to remember. Supply-chain constraints held back U.S. retail sales of small tractors from the Duluth, Georgia-based manufacturer in the first three months of 2022, compared to the record highs during the same period in 2021. With its expansive trailer network, Knight-Swift Transportation affords smaller and third-party carrier drivers' the opportunity to partake in "drop-and-hook" trucking, a practice they historically have not been able to. For the full year 2022, the adjusted EBITDA target for its North American LTL division is at least $1 billion. Closing that pipeline for used plastics has created an urgent need to develop more efficient methods of recycling in many parts of the world. But even amid stiff broad-market headwinds, industrial stocks have shown some resilience. To handle the rise, the Purchase, New York-based provider of aircraft and aviation operating services is adding eight new aircraft to its fleet. Plus, valuations for some of the best industrial stocks for 2022 are much more attractive than they were in 2021. Plus, the travel industry is poised for a red-hot summer, with consumers ready to travel again amid pent-up demand for vacation. Photo Illustration by Sam Kelly; Dreamstime (2).
In the second quarter of 2022, UFPI is slated to add a new ProWood fire retardant location that will increase its national capacity to 45 million board feet. Mid-caps are the market's so-called 'sweet spot,' offering up an ideal combination of financial stability and growth potential. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Wadewitz anticipates additional upside in KNX's power-only loads and expects that backdrop to translate into solid earnings performance throughout 2022, with the next question being how 2023 and beyond will shape up. READ ALSO: Navigating Californias Mighty Industrial Market. Atlas Air Worldwide Holdings (AAWW, $63.99) is on this list of the best industrial stocks because it is projected to climb through the remainder of 2022 and beyond. Visit our corporate site www.futureplc.com Future US LLC, 10th floor, 1100 13th Street NW, Washington, DC 20005. "XPO is shifting to a pure play LTL carrier," Hoexter says. The industrial sector entered 2022 the same way they entered 2021: generally favored by analysts anticipating growth from a healing economy. Although chemical recycling has its own challenges, it could be poised to take significant steps forward over both the short and long term, giving meaningful potential boosts to revenue and earnings growth of chemical recycling providers. This is especially true during a time when market oil prices are "moving pretty materially on a daily basis," Tammy Romo, chief financial officer of Southwest Airlines, said on that call. A leading supplier of pressure-treated lumber, UFP produces materials to help customers solve their building challenges.
XPO revised its 2022 EBITDA targets based on stronger than anticipated first-quarter results and the sale of its intermodal business. Email address must be 5 characters at minimum. "We expect earnings per share should double next year and be over $10 a share in 2024 and never look back," he says. Were going to continue to see companies trying to push more through their distribution channels at higher speed and higher quality. Companies that provide digitized water metering, automation, and water-management software could be poised to benefit from increased need for these solutions. John, D'Monte. Most recently, the company acquired Hunter Fan earlier this year, which contributed 21% to revenue in Griffon's consumer and personal products segment in its March quarter. It connects clients with staffing solutions across numerous industries, including manufacturing, construction and hospitality. However, given that 2022's economy will not be as vibrant as 2021's, it'll pay to be choosy. Please enter a valid email address. Nonetheless, the vacancy rate will remain low170 basis points below its 10-year average between 2012 and 2021 of 5.8 percent. Investing involves risk, including risk of loss. Name a few of the most significant trends that will drive growth in your industry in 2022. References to specific securities or investment themes are for illustrative purposes only and should not be construed as recommendations or investment advice. Given the short- and long-term trends toward increased focus on ESG practices, these software providers could continue to see robust demand. Fidelity cannot be held responsible for any type of loss incurred by applying any of the information presented. As a result, URI's fleet productivity increased 13% during Q1 2022 compared to the same quarter a year ago. https://www.barrons.com/articles/industrial-stocks-sector-outlook-51639761899. In May, for instance, the Institute of Supply Management's manufacturing Purchasing Manager Index was up 0.7 percentage point from April, marking a 24th straight month of economic growth. "If GDP continues to expand as we expect in 2022 (short-term setbacks notwithstanding) and interest rates inch higher," say Janus Henderson Investors strategists, "value-oriented sectors such as financials, industrials, materials and energy might once again take the lead.". "Based on a still strong air cargo market, a significantly improved balance sheet, and a valuation discount to mid-cycle valuations, we believe there is still room on the upside for [AAWW] shares at today's prices," Galanti says, adding "Atlas Air shares are getting awfully close to a 'Pound The Table' Buy.". He also lifted his price target and reiterated a Buy rating on the stock. All Rights Reserved. Analyst ratings and estimates are courtesy of S&P Global Market Intelligence. OC sees strong demand for its products across its business segments continuing in 2022, despite rising inflationary pressures. Demand for products and services to help solve these shortages may only increase in the coming years, as inadequate water infrastructure, booming population growth, and climate change continue to put pressure on water systems. The U.S. market absorbed a total of 140.7 million square feet in the third quarter, while overall absorption is predicted to reach 507.3 million square feet of space in 2021. Owens Corning's strategy to accelerate growth and generate higher and more resilient earnings is by strengthening its core businesses and expanding into new products and applications. Fidelity does not guarantee accuracy of results or suitability of information provided. As higher transportation costs countervail low rents, secondary and tertiary industrial markets wont benefit as much from this shift in supply chain strategies. However, Prologis predicts that the just-in-case inventory strategy will require around 800 million square feet of logistics space in the near term. URI is down 20% for the year-to-date. Tesla (TSLA) reported a bottom-line beat in Q2, and said it sold Bitcoin to boost its cash reserves. This, in turn, delivers KNX additional revenue. Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities. The Tacoma, Washington-based company is the largest provider of blue-collar, contingent on-demand and skilled laborers in the U.S. As a result, Atlas expects fiscal 2022 revenue of approximately $4.6 billion and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of about $1 billion. In the first quarter, new product sales for UFP were $151 million, well ahead of the pace necessary to hit the company's 2022 goal of $525 million, Matt Missad, CEO of UFP Industries, said during a conference call with analysts. This information must not be relied upon in making any investment decision. This has been beneficial to shippers during the tight truckload market. The latest CRE news, delivered every morning. The Harris Williams Industrials Group has experience across a variety of sectors, including advanced manufacturing; building products; chemicals and specialty materials; industrial technology; and packaging. This will allow it to capitalize on the growth in e-commerce. Forced to reimagine how they think about and utilize space, businesses have often pivoted to on-demand warehousing to secure space to suit their needs and timelines, Chunker CEO Brad Wright told CPE. For the best Barrons.com experience, please update to a modern browser. The ability to provide current metrics and to show improvement on ESG measures is becoming increasingly important to many companies. The supply chain will unlock, consumers will continue to spend, and there will still be plenty of liquidity. It projects production hours to increase between 5% and 10% in 2022 compared to 2021 production levels. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. While Atlas' global airfreight capacity continues to be constrained by the limited number of new freighters entering the market, it is still above pre-pandemic levels. Shortages caused by disruptions in the supply chain along with recent fuel price hikes have driven more customer volume to intermodal (two or more modes of transportation to deliver goods) from just trucks. Subscribe, 2022 Commercial Property Executive, Navigating Californias Mighty Industrial Market, $70M Overhaul Spotlights High-Tech Logistics, OKO Group JV Signs 60 KSF Tenant at Miami Tower, San Francisco Office Leasing Still Slow in Q2, Highwoods Properties Enters DFW Market With $130M Deal. Vanguard Industrial And demand continues to outpace supply. Potential winners may include companies that provide sustainability-management software, chemical recyclers, and businesses that aid water conservation. After OC reported record first-quarter revenue, UBS Global Research analyst John Lovallo raised his 2022 through 2024 earnings estimates for the company. "Price-cost has finally hit parity in Griffon's highest margin HBP business, backlogs continue to widen, and upside remains if/when CPP can also reach price-cost parity," the analyst writes in a note. These are essentially hidden gems that can provide a lifeline to businesses in need of space quickly and on flexible terms, without the hassle and expense of long-term leases, Wright said. The latest housing data showed existing home sales fell again in June as home prices kept rising. KNX is also one of the best industrial stocks in terms of its balance sheet. AGCO's results are heavily dependent on its supply-chain performance of 2022, (i.e. Energy independence, resiliency, security and sustainability were key drivers of record orders ($636.8 million) and backlog ($1.5 billion) reported in the first quarter of 2022, accelerated by activity in both LNG and specialty products. Investors need to be mindful of the supply chain as it continues to loosen up. Our view has only brightened during the past 18 months. Its true that the The Greenwich, Connecticut-based provider of supply-chain solutions including LTL and brokerage (a network of vetted carriers) recently sold its North American intermodal business (rail brokerage and drayage services) and plans to divest its European business by 2023 to accelerate growth. An error has occurred, please try again later. But the average stock in the market-capitalization-weighted index is up roughly 24%. A significant lift in its global air freight business coming from new high-yield long-term contracts some of which run through 2027. They believe HUBG's growth profile looks attractive for the next couple of years, even with shares currently trading well into the value territory. The Phoenix, Arizona-based truckload carrier, one of the largest in the nation with over 71,000 trailers in its fleet, is leveraging its fleet to help reduce supply-chain issues regardless who is behind the wheel.
How will 2022 stack up? Darkatsh has a Strong Buy rating on the small-cap stock with a $40 price target, implying expected upside of 48% from current levels. "The flagship intermodal offering is especially well-positioned given the increased foci on the rising price of fuel and structural limitations on trailer supply, which is driving faster conversion to rail," Stifel's analysts wrote. The subject line of the email you send will be "Fidelity.com: ". Fidelity does not assume any duty to update any of the information. Alternative energy projects continue to be delayed too, which could be material for TBI for several years. But, like so many other corners of the market, numerous names within the sector including many of the best industrial stocks were hit hard. The company is leveraging both the roads and rails to transport freight, fueling an increase in customers that is expected to drive revenues through 2025.
It is a violation of law in some jurisdictions to falsely identify yourself in an email. How do you feel about M&A conditions heading into 2022 within your industry? Even if there is some moderation compared with 2021, 2022 will still be a very good year. Its ACMI segment provides aircraft, crew, maintenance and insurance services; charter comprises planeload air cargo and passenger aircraft charters including the U.S. military, direct shippers and freight forwarders. The move toward greater sustainability may continue to be a key force for the industrial sector in 2022. Information that you input is not stored or reviewed for any purpose other than to provide search results. "This has been hugely successful with more customers and small carrier demand than we can keep up with,'' said David Jackson, CEO of Knight-Swift Transportation Holdings, during a recent analyst call. As for the other two: PeopleReady provides on-demand industrial staffing and PeopleScout delivers recruitment process outsourcing (RPO) and managed service provider solutions for numerous industries. Stifel analysts (Buy) said that management's new guidance reflects "the long-term viability of intermodal in the shipper freight spend stack, regardless of cycle, but especially as network fluidity improves and supply chains find some semblance of normalcy.". Despite a record-setting year and the positive outlook, the persistent backlog at some of the countrys largest seaports, labor shortages impacting every link in the supply chain and the lack of available land will continue to pressure the industrial sector in the coming year, Colliers noted. And UFP's new Ultra Aluminum product line from its Deckorators Composite Decking business is doing well, he added. Sector ideas
This is a result of global disruptions in the supply chain. UFP Industries (UFPI, $70.46) is prioritizing enhanced production capacity as well as new and value-added lumber, decking and interior design products for its future growth. Drop-and-hook trucking, aka power-only, permits third-party carriers to haul freight using Knight-Swift trailers. "We see runway here,'' Matt Flannery, CEO of United Rentals, told investors during a recent earnings call. Additionally, occupiers will continue to look for Class A space in premium locations. ", Staszak adds that Southwest is "well-positioned to emerge from the coronavirus pandemic" thanks to its $16.7 billion in liquidity and "an emphasis on leisure travelers.". The surge in passenger demand helped the Dallas, Texas-based low-fare, low-cost airline's revenues takeoff late in the first quarter of 2022. That trend is going to continue to proliferatewere working on more engagements with our Technology and our Healthcare & Life Sciences groups than ever before. e.g. And 2022 could be even better. Dry leasing consists of the leasing of aircraft and engines. Capital Gains Tax 101: Basic Rules Investors and Others Need to Know. Investment decisions should be based on an individual's own goals, time horizon, and tolerance for risk. This year, Chart has seen an increase in both orders and queries from the public and private sectors requiring its products, including the U.K., which has doubled its hydrogen target by 2030. So it is the big guys that are weighing on the groups performance, even as most industrial stocks are doing just fine. United Rentals' (URI, $265.06) aerial lifts, used in the construction of bridges, are just one of the heavy-duty pieces of machinery it can engage to shore up its pillars for growth. AGCO expects North American Industry unit sales to be up 5% to 10% this year compared to 2021.
exchange-traded fund (ticker: VIS), a proxy for the sector, hasnt been a star: Its up about 19% year to date, trailing the The industrials industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition, and can be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. "Our value proposition and supply-chain savings is resonating with our customers and leading to a strong pipeline of wins we will continue to see throughout the remainder of the year," said Phil Yeager, chief operating officer of Hub Group, in the company's first-quarter earnings call. What should M&A investors keep top-of-mind in your industry this year? That shift in perspectivefocused on protecting our clients time. To learn more, please contact our senior bankers. Short-term warehouse solutions can, without a doubt, fill a gap in the market, especially when businesses are trying to deal with the immediate effects of the pandemic and supply chain crisis. Having brought in more fleet at the end of 2021, the additional capacity helped United Rentals capitalize on a surge in demand. Even with higher inflation, the Toledo, Ohio-based company expects to maintain positive price/cost in each of its three businesses: composites, insulation and roofing. One valuable group of solutions to this problem are efforts to reduce so-called non-revenue water, which is water that's lost due to leaking infrastructure, broken meters, and unauthorized use. Please enter a valid last name. For investors in the industrial sector, there could be room to ride the sustainability trend both in 2022 and beyond. These are tied to the $1.2 trillion Infrastructure Investment and Jobs Act that passed in November. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. By using this service, you agree to input your real email address and only send it to people you know. "We believe that KNX has an attractive mix of growth drivers as they lever their large scale in truckload to support growth in related segments and as they use their large free cash flow and balance sheet capacity to deliver inorganic growth," the analyst adds.
2021 has been a great year for industrials subsectors, and our backlogs are very healthy. For more information on the firms Industrials Group and other recent transactions, visit the Industrials Groups section of the Harris Williams website. (Separate multiple email addresses with commas), (Separate multiple e-mail addresses with commas). Primary, gateway locations might not be able to support this growth, considering the high barriers these markets pose when it comes to new development. With that in mind, read on to explore our 12 best industrial stocks to buy for the remainder of 2022, including what sets these shares apart from the rest of the sector pack. "Given a focus on creating value for the producer, we believe AGCO is effectively leveraging its technology investments to create a steady stream of incremental value through OE integration and aftermarket capture and driving improved cross-cycle margins.". Still, overall trends for UFPI and its fellow industrial stocks in the composite decking space remain strong, and they expect price and cost pressures to improve through the remainder of the year. 
roads, bridges and ports that should kick-off in 2023. Construction and manufacturing have yet to make a full recovery due to supply-chain constraints. Therefore, this limited opportunity for ground-up projects might push some growth into neighboring locations. "We believe AGCO is well positioned to benefit from secular trends of digitization, automation and autonomy unfolding in agriculture," Owens says. For all of 2022, Griffon expects revenue of $2.85 billion and segment adjusted EBITDA OF $475 million higher than the $2.75 billion and $355 million it forecast in February due to contributions from Hunter. Owens Corning (OC, $82.81) is a global building and construction materials leader producing glass fiber used in composites, insulation and roofing materials. Learn the ins and outs of the capital gains tax, which you may owe if you sell stocks, your home, cryptocurrency, a stamp collection, and much more. On the investment side, appetite is expected to remain high through 2022, following record sales in 2021. Thats the most fitting way to describe the booming industrial market weve seen from coast to coast since the onset of the health crisis. This is part of a broader strategic review the New York-based manufacturer of Clopay garage doors is undergoing in order to focus on its consumer and professional products' (CPP) segment and unlock shareholder value. Like what you're reading? In North America, higher commodity prices and healthy sentiment among farmers are projected to be a boon for 2022 sales. Here are important capital gains tax rules to keep in mind. Port markets generally record the tightest vacancy rates, with the Inland Empire having only 1 percent of vacant space at the end of the third quarterthe lowest in the country, according to CommercialEdge data. If that were to occur, investors should expect a sharp appreciation in GTLS shares. How has your team delivered exceptional client service in this busy market? "Overall, we remain positive on the space and the conversion opportunity for composite decks and market outgrowth in the outdoor living category," the analysts write in a note. Southwest Airlines (LUV, $37.62) has mapped a flight plan to return the carrier to profitability in 2022, lifted by its hedges against fuel spikes and accelerated by rising fares and passenger bookings.