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Highlights
- Downer, Aurizon, and Seven Group belong to medium-size market capitalisation stocks from the industrial sector.
- Downer and Auckland Transport entered into a partnership recently for two major road maintenance contracts worth AU$800 million.
- Aurizon completed the acquisition of One Rail Australia (ORA) last month for AU$2.35 billion.
- Seven Group Holdings has strong positioning for future growth as it holds solid credit support from the Private Placement market in the United States as well as domestically.
Every investment brings with it probable chances of gain and loss; however, there is a need to find a sweet spot that allows a fine balance between chances of risks and returns during equity investment. That might be one reason which makes investors add mid-cap stocks to their portfolios. Companies listed under the mid-cap stocks category have a total valuation between AU$2 billion and AU$10 billion.
Let’s have a look at three medium-size market capitalisation stocks from the industrial sector and their stock price change on a quarter-to-date basis (QTD) following recent developments. The industrial sector encloses stocks of firms involved in the production/distribution of capital goods and the provision of professional and commercial services or transportation. On the Australian Securities Exchange (ASX), 167 companies are listed under the sector.
Image Source: © 2022 Kalkine Media®, Data Source: Refinitiv (as on 02 August)
Downer EDI Limited (ASX:DOW)
Downer stands out as one of the eminent providers of road maintenance services in Australia and New Zealand. Recently, Downer strengthened its partnership with Auckland Transport by inking two major road maintenance contracts. The contracts will involve investments worth AU$800 million over a period of 10 years. As per the contract, Downer will offer maintenance as well as renewal activities for the Central network and the North Rural network of Auckland Transport.
Aurizon Holdings Limited (ASX:AZJ)
Aurizon is one of the largest coal rail network operators in the world, connecting over 50 mines with three major ports in Queensland. In July, the company completed the acquisition of One Rail Australia (ORA) for AU$2.35 billion. ORA is one of the most popular providers of intermodal and bulk freight in the Northern Territory as well as South Australia. The transformative acquisition falls in line with the growth strategy of the firm offering it a broad pathway for expansion into new regions.
Seven Group Holdings (ASX:SVW)
A diversified operating and investment group, Seven Group Holdings, hosts businesses and investments in media, energy and industrial services. The company is the owner of the country’s largest nationwide industrial and general equipment hire business, Coates.
The Group has strong positioning for future growth as it holds solid credit support from the Private Placement market in the United States as well as domestically. The company believes it can generate funds through structured swaps, alternative markets, and scrip loans for further growth opportunities.
