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Highlights
- Industrial companies provide heavy equipment other related supplies for the construction and manufacturing industries.
- Industrial companies are among the oldest companies in the US.
- The S&P Industrials Composite Index returned 12.64% gains in one year.
Industrial companies provide heavy equipment, and other related supplies to the construction and manufacturing sectors. These are among the oldest companies in the US. The industrial sector has many subsectors besides machinery and equipment, such as building supplies, automobiles, airlines, railways, logistics, waste management, agriculture, mining, etc.
We discuss the top seven industrial stocks in the S&P 500 based on market capitalization.
Also Read: Top 50 NYSE stocks in 2022 (Part 1)
United Parcel Service, Inc. (NYSE:UPS)
Market Cap: US$188.7 billion
Closing price on February 10, 2022: US$220.68
The United Parcel manages a fleet of over 500 planes, 100,000 vehicles, and hundreds of sorting facilities to deliver around 25 million packages daily across the world. It is headquartered in Atlanta, Georgia.
For the fourth quarter ended December 31, 2021, the company reported consolidated revenue of US$27.8 billion, up 11.5% YoY. Its consolidated operating profit grew by 91% YoY to US$3.9 billion. The earnings per share diluted came in at US$3.52 in the period.
Its P/E ratio is 14.78, the forward P/E for one year is 17.35, the dividend yield is 1.81%, and the annualized dividend is US$6.08.
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Union Pacific Corporation (NYSE:UNP)
Market Cap: US$154 billion
Closing price on February 10, 2022: US$242.12
The Omaha, Nebraska-based Union Pacific is a public railroad company that covers more than 30,000 miles of track in the US. It generates revenue from hauling coal, agriculture goods, chemicals, industrial products, intermodal containers, automotive goods, etc. It also owns a part of the Mexican railroad Ferromex. The company was listed in Fortune magazine's World's Most Admired Companies list in the trucking, transportation, and logistics category.
For the fiscal year 2021, its operating revenue was US$21.8 billion, and the net income was US$6.52 billion or US$9.95 per share diluted.
Its P/E ratio is 24.34, the forward P/E for one year is 21.11, the dividend yield is 1.91%, and the annualized dividend is US$4.72.
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Raytheon Technologies Corporation (NYSE:RTX)
Market Cap: US$142.1 billion
Closing price on February 10, 2022: US$95.06
Raytheon Technologies is a defense industrial and aerospace company. It manufactures engines, provides diversified aerospace supply, intelligence, space and airborne systems, integrated defense, and missile systems. It works as a defense contractor for missiles and related defense hardware.
For fiscal 2021, it reported sales of US$64.4 billion and GAAP EPS of US$2.58. The net income was US$3.9 billion in FY2021. It expects sales in the range of US$68.5 to US$69.5 billion in 2022.
Its P/E ratio is 36.94, the forward P/E for one year is 19.85, the dividend yield is 2.12%, and the annualized dividend is US$2.04.
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Honeywell International Inc. (NASDAQ:HON)
Market Cap: US$129.5 billion
Closing price on February 10, 2022: US$191.75
Charlotte, North Carolina-based Honeywell provides thermostats. In 2019, it entered the enterprise performance-management software segment.
For the fiscal year ended December 31, 2021, the company booked a net income attributable to the company of US$5.54 billion or US$7.91 per share diluted on net sales of US$34.39 billion.
Its P/E ratio is 23.75, the forward P/E for one year is 22.61, the dividend yield is 1.99%, and the annualized dividend is US$3.92.
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Boeing Company (NYSE:BA)
Market Cap: US$123.2 billion
Closing price on February 10, 2022: US$218.75
Boeing is an aerospace and defense company. Its four operating segments are space & security, commercial airplanes, global services, and Boeing capital. It is based in Chicago, Illinois.
For the fiscal year ended December 2021, the aerospace firm booked a net loss of US$4.2 billion or US$7.15 per share diluted on revenue of US$62.29 billion. Its revenue and net loss were US$58.15 billion and US$11.87 billion, respectively, in fiscal 2020.
BA’s forward P/E for one year is 62.14.
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Deere & Company (NYSE:DE)
Market Cap: US$121 billion
Closing price on February 10, 2022: US$393.15
The Moline, Illinois-based Deere manufactures machines for the heavy machinery industry and equipment for the agriculture sector. Its four segments are production & precision agriculture, small agriculture & turf, construction & forestry, and John Deere Capital. It has around 3,700 dealer locations globally.
For the fiscal year ended October 31, 2021, its reported net revenue of US$39.73 billion and a net income attributable to the company of US$5.96 billion or US$18.99 per share diluted.
Its P/E ratio is 20.68, the forward P/E for one year is 17.70, the dividend yield is 1.06%, and the annualized dividend is US$4.20.
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Caterpillar, Inc. (NYSE:CAT)
Market Cap: US$108.86 billion
Closing price on February 10, 2022: US$203.07
Caterpillar manufactures heavy equipment, power solutions, and locomotives. The Deerfield, Illinois-based company has four operating segments, construction industries, resource industries, energy & transportation, and Caterpillar Financial Services.
It declared its full-year result on January 28. The company reported revenue of US$2.56 billion in fiscal 2021, a growth of US$12 million YoY. Its profit grew 72% YoY to US$505 million in FY2021. Its P/E ratio is 17, the forward P/E for one year is 16.51, the dividend yield is 2.18%, and the annualized dividend is US$4.44.
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Bottomline
The government passed a US$1.2 trillion infrastructure bill in 2021 to improve infrastructure and create jobs in the sector, the backbone of the country. The industry saw modest growth over the past year. The S&P Industrials Composite Index returned 12.64% gains in one year compared to 12.30% generated by the S&P 500 index.
