5 TSX industrial stocks to explore if you are a long-term investor

The TSX benchmark index continued its winning streak with a double-digit surge of 42.18 points to 19,062.85 on July 21, with the S&P/ TSX Capped Industrials Index gaining 1.3 per cent on Thursday, July 21.

The industrial index, notably recorded quarter-to-date (QTD) increase of almost five per cent. Investors targeting stable returns over the span of long duration generally look for industrial stocks that could build or improve their wealth. Such investors could explore TSX industrial stocks like Bombardier (TSX: BBD.B), Russel (TSX: RUS) and TFI International (TSX: TFII) etc.

On that note, let us look at these TSX industrial stocks closely as these could offer quality returns to investors with a focus on a long-term approach. 

1. Bombardier Inc (TSX: BBD.B)

Bombardier recently opened a Singapore Service Centre in the Asia Pacific. With this new Original Equipment Manufacturer (OEM) business aviation facility, the Canadian business jet maker aims to expand and improve its customer service footprint globally.

The BBD.B stock rose by over 15 per cent QTD. As per Refinitiv, Bombardier stock had a Relative Strength Index (RSI) of 50.74, supported by shares trading volume of 1.22 million (indicating a moderate trend) on July 21.

2. Russel Metals Inc (TSX: RUS)

Metal distributor Russel reported revenues of C$ 1.33 billion in Q1 FY2022 relative to C$ 885 million in the same period of 2021. The Canadian industrial services provider also improved its profitability by posting a net profit of C$ 99 million in the latest quarter, higher than C$ 81 million in Q1 2021.

The RUS stock grew by about 11 per cent week-to-date. This TSX industrial stock, however, dipped by approximately 21 per cent in a year. According to Refinitiv, RUS stock saw its RSI sharply rise to 54.15 on July 21.

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3. TFI International Inc (TSX: TFII)

TFI noted a year-over-year (YoY) jump of 121 per cent in its net income to US$ 147.7 million in the first quarter of 2022. The C$ 10-billion market cap logistics company recorded a return on equity (ROE) of over 37 per cent, depicting its profitability.

The TFII stock zoomed by over 15 per cent month-to-date (MTD). According to Refinitiv data, TFII seems to be on an upward trend with an RSI of 71.82 on July 21.

4. ATS Automation Tooling Systems Inc (TSX: ATA)

ATS Automation, on July 17, revealed that its Industrial Automation unit received an electric vehicles (EV) order of C$ 90 million (according to current exchange rates) from an existing customer.

The ATA stock shot up by over five per cent in 52 weeks. As per Refinitiv information, ATA stock’s RSI was 60.76 on July 21, indicating a moderate-to-high trend.

5. Air Canada (TSX: AC)

Air Canada recently partnered with Emirates to grow its airline network to give customers more options and enhance the travelling experience. This midcap stock rose by almost 10 per cent in July and, based on data taken from Refinitiv, had an RSI of 45.07 on July 21.

Bottom line

The TSX industrial index plummeted by nearly six per cent in year-to-date (YTD). However, investors focused on growth and significant returns in the long horizon can consider these industrial stocks mentioned above. Income investors with risk capacity could also explore as some of these stocks offer dividends.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.