Are these five industrial stocks redefining the American dream?

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Are these five industrial stocks redefining the American dream?

 Are these five industrial stocks redefining the American dream?
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Highlights

  • Stocks of Louisiana-Pacific Corporation (NYSE: LPX) surged 61.47 percent YTD.
  • Total revenue of Air Lease Corporation (NYSE: AL) declined by 5.7% in Q2.
  • Net sales of Builders FirstSource Inc. (NYSE: BLDR) jumped 186.6% in Q2.

The industrial sector, also called the secondary sector, is often driven by the country’s economic growth. This sector makes various capital goods for the construction and manufacturing industries like heavy machinery and other products.


The industrial sector has been upbeat after President Joe Biden recently announced a US$1 trillion spending boost for the infra sector that will commence large-scale construction work, like building roads and bridges, water systems etc., over the next few years.

Although the economically sensitive stocks have been wavering due to the pandemic disruptions in recent times, the industry is hopeful of a strong rebound in the coming quarters.

Let's look at some of the industrial stocks that may benefit from Biden’s plans.

Louisiana-Pacific Corporation (NYSE: LPX)

The stocks of the building material manufacturing firm traded at US$59.95 as of 9:30 am ET on August 12, up 1.70 percent compared to its closing price on August 11. The stock value of LPX increased by 61.47 percent YTD.

The net sales of the Tennessee-based company increased 142 percent YoY to US$1.3 billion in the second quarter. Its attributed net income was US$498 million, or US$4.90 per diluted share, while adjusted EBITDA was US$684 million. Its liquidity reserves were US$603 million as of June 30, 2021.

The market capitalization of the company is US$5.709 billion. The forward P/E one year is 4.45. The earnings per share (EPS) is US$11.81. 

The highest and lowest stock price of the firm for 52 weeks is US$76.35 and US$27.01. Its share volume is 1,195,535.

Also Read: How does a cryptocurrency work? What types of cryptocurrencies are there?

Seaboard Corporation (NYSE American: SEB)

The stocks of the agribusiness and transportation conglomerate firm traded at US$4135.88 as of 9:45 am ET on August 12, down 0.40 percent compared to its closing price on August 11. The stock value of SEB surged 32.14 percent YTD.

The net sales of the Merriam, Kansas-based company in the Q2 was US$2,430 million, compared to US$1,808 million in the year-ago quarter. Its operating income was US$165 million, while attributed net earnings were US$176 million in the Q2 for fiscal 2021.

The market capitalization of the company is US$4.801 billion. Its P/E Ratio is 6.35. The earnings per share (EPS) is US$654.28. 

The highest and lowest stock price of the firm for 52 weeks is US$4,390.50 and US$2,624.50. Its share volume is 416.

Air Lease Corporation (NYSE: AL)


The stocks of the aircraft leasing firm traded at US$43.18 as of 10:06 am ET on August 12, down 0.74 percent compared to its closing price on August 11. The stock value of Air Lease increased by 1.86 percent YTD.

The total revenue of the California-based company decreased 5.7 percent YoY to US$491.9 million in the second quarter. Its net income before income taxes was US$125.9 million, and diluted earnings per share were US$0.75 compared to US$1.26 in Q2 for fiscal 2020.

The market capitalization of the company is US$4.91 billion. Its forward P/E one year is 12.89. The earnings per share (EPS) is US$3.41. 

The highest and lowest stock price of the firm for 52 weeks is US$52.96 and US$26.65. Its share volume is 22,387.

Also Read: US stocks edge higher on inflation data

Builders FirstSource Inc. (NYSE: BLDR)


The stocks of the building material manufacturer and supplier firm traded at US$51.63 as of 10:27 am ET on August 12, up 2.77 percent compared to its closing price on August 11. The stock value of BLDR increased by 29.65 percent YTD.

The net sales of the Texas-based company increased 186.6 percent YoY to US$5.6 billion in the second quarter. Its net income came in at US$497.2 million, or US$2.39 per diluted share. The adjusted net income came in at US$574 million, or US$2.76 apiece.

The market capitalization of the company is US$10.67 billion. The forward P/E one year is 8.74. The earnings per share (EPS) is US$5.13. 

The highest and lowest stock price of the firm for 52 weeks is US$53.99 and US$27.63, and its share volume is 966,776.

Advanced Drainage Systems Inc. (WMS)

The stocks of the plastic pipe and other drainage products manufacturer traded at US$119.23 as of 10:37 am ET on August 12, up 0.45 percent compared to its closing price on August 11. The stock value of WMS increased by 47.91 percent YTD.

The net sales of the Ohio-based company increased 31.6 percent YoY to US$669.3 million in the first quarter of fiscal 2022. Its net income surged 9.1 percent to US$77.1 million, while adjusted EBITDA rose 4.5 percent to US$166.6 million compared to Q2 for fiscal 2021.

The market capitalization of the company is US$8.39 billion. The forward P/E one year is 30.93. The earnings per share (EPS) is US$2.65. 

The highest and lowest stock price of the firm for 52 weeks is US$124.98 and US$53.63. Its share volume is 47,797.

Also Read: Top 5 infra stocks to explore after Biden’s big building plan

Bottom line

The industrial sector is seeing rapid recovery from the covid downturn of late, driven by the government’s massive monetary stimulus in the economy. As a result, industrial stocks are drawing increased attention from investors. It is expected that the sector would make a strong comeback as the economic activities gain pace in the coming months.

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