3 Industrial Stocks Set To Soar On Increased Capital Spending

That’s why I am highlighting these three companies below.

Deere & Company (DE)

DE is the world’s leading manufacturer of agricultural equipment. The company has a leading market share in multiple large farm-equipment segments. Its three main areas are Agriculture and Turf, Construction and Forestry, and Credit. 

An increase in capital spending should benefit DE’s construction segment. In addition to corporate spending, infrastructure spending in the U.S. is a tailwind for the company. Its agriculture segment will benefit from solid crop demand due to improving demand in China and a tight global supply. There will also be healthy replacement demand for large agriculture equipment as farmers will be incentivized to grow more crops due to higher crop prices.

DE has an overall grade of B, which translates into a Buy Rating in our POWR Ratings system. It also has a Sentiment Grade of A, which means analysts love the stock. According to the StockNews Price Target feature, fifteen analysts have a Strong Buy or Buy rating on the stock. We also grade DE based-on Growth, Value, Momentum, Stability, and Quality. You can find those grades here

DE is ranked #46 in the A-rated Industrial – Machinery industry. You can find other top stocks in that industry by clicking here.

Eaton Corporation (ETN)

ETN is a diversified power management company operating for over 100 years. The company operates through various segments, including electrical products, electrical systems and services, aerospace, vehicle, and most recently, e-mobility. 

In addition to Capex, the company’s sales should see a boost from the growing demand for upgrading power infrastructure in developing economies and the trend toward industrial Internet of Things and automation. The electrification of vehicles should also help growth as the company created the new eMobility segment in 2018. Plus, upgrades to aging infrastructure in the U.S. is a secular tailwind for the company.

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