3 Top Industrial Stocks To Buy For An Improving Economy

NASDAQ: ROCK | Gibraltar Industries, Inc. News, Ratings, and Charts

The market finished the week up as stocks hit new fresh closing highs once again. These gains are driven by the expectation of the economy opening up later in the year. A rebounding economy is great news for the industrial sector and stocks such as Gibraltar Industries (ROCK), Owens Corning (OC), and RPM International (RPM).

Stocks finished the week slightly up to hit fresh record closing highs and post back-to-back weekly gains. The choppy trading followed a familiar pattern as last week, with stocks fluctuating between gains and losses. Investors appear focused on earnings and a potential stimulus deal as we head into the Presidents’ Day holiday weekend.

All signs point to a stronger rebound in the economy later this year, which should benefit cyclical stocks such as financials, consumer discretionary, and industrials. A rotation had already started at the end of last year, only to be surpassed by tech stocks as of late. I believe that rotation will pick up once again over the next couple of months, which is why I am recommending industrial stocks such as Gibraltar Industries, Inc. (ROCK - Get Rating), Owens Corning (OC - Get Rating), and RPM International Inc. (RPM - Get Rating).

But first, let’s take a more in-depth look at how the market has performed over the past week.

Market Commentary

The market was mixed Friday, with equities hovering near record levels only to see a late push after 2:30 pm to finish at record highs. This followed a similar trading day Thursday, with both the S&P 500 and Nasdaq finishing at fresh record closing highs led by tech stocks. The Dow ended pretty close to its own record closing level on Thursday.

In addition to elevated expectations of a new stimulus bill, the market has been driven by a series of stronger than expected earnings results as profits rebound much faster than analysts expected. This is likely due to current monetary policy and previous fiscal stimulus measures. Stocks continue to set fresh record highs amid the current environment.

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