3 Industrial Stocks Set To Soar On Increased Capital Spending

ETN has an overall grade of B or a Buy in our POWR Ratings system. The company has a Momentum Grade of A, as its stock has shown bullish momentum in the near-, mid-, and long-term. Plus, ETN has a Quality Grade of B, indicating a healthy balance sheet. The company has a current ratio of 1.6, which means it has more than enough liquidity to handle short-term debts. To access the rest of ETN’s grades (Growth, Value, Stability, and Sentiment), click here.

ETN is ranked #11 in the same A-rated industry as DE, Industrial – Machinery. 

Cummins Inc. (CMI)

CMI is a leading manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, along with diesel-powered electric generators. The company is an industry leader in the class 8 truck market, where it currently supplies 35% of engines. It also provides components for on- and off-highway vehicles and power generation markets. As more companies ramp up capital spending, there will be a greater need for diesel engines.

The company is poised to capture a more significant share of upfront vehicle content as customers want the most reliable and fuel-efficient diesel engines. CMI should also see improved truck sales due to increased investment in electrification. The shift to electric vehicles and machinery should benefit the company due to its leading-edge technology in truck engines. Plus, the company’s efforts to increase its fuel cell and hydrogen production technology capabilities are also a positive.

CMI has a Buy rating or a grade of B in our POWR Ratings system. It also has a Quality Grade of A, indicating a solid balance sheet. As of the most recent quarter, CMI had $3.9 billion cash, compared with only $554 million in short-term debt. To access all of CMI’s grades (Growth, Value, Momentum, Stability, and Sentiment), click here.

CMI is also ranked (#20) in the Industrial – Machinery industry.

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