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Highlights:
- Quanta Services (NYSE:PWR) has a dividend yield of 0.22% and a P/E ratio of 40.08.
- FTI Consulting's (NYSE:FCN) P/E ratio is 29.05, and the forward P/E for one year is 27.31.
- Dycom Industries (NYSE:DY) has a P/E ratio of 42.86. Its stock gained 36% in a year.
The industrial sector is one of the oldest economic sectors and comprises companies producing machinery and equipment for core activities like manufacturing and construction. The segment thrives as the economy booms but declines as the economy weakens. The S&P Industrials Composite Index (SPI) dropped around 10% in one year, whereas the Dow Jones Industrial Average (DJIA) fell over 8% in a year, pointing at the contracting economy.
Some large caps industrial stocks include Lockheed Martin Corp. (LMT), United Airlines Holdings Inc. (UAL), Raytheon Technologies (RTX), Deere & Company (DE), etc. Here we discuss five large and mid-cap companies that gave over 35% return in a year.
Meritor, Inc. (NYSE:MTOR)
One-year return: 63.50%
Troy, Michigan-based Meritor Inc. manufactures automobile parts. Its products include drivetrain, brake, axle, suspension solutions, etc., for industrial markets.
The company had a market capitalization of US$2.57 billion as of July 8, 2022. Its P/E ratio stood at 11.83, and the forward P/E for one year at 9.95.
For the quarter ended March 31, 2022, it reported sales of US$1.15 billion compared to US$0.983 billion for the same quarter a year ago, reflecting around a 17% increase YoY.
The net income remained almost the same at US$65 million or US$0.86 per share diluted compared to US$66 million or US$0.86 per diluted share in the March quarter of 2021.
In May this year, it announced its shareholders’ approval for the company’s acquisition by Cummins Inc. (CMI), which is expected to complete by the end of this year.
The stock traded in the range of US$36.43 to US$20.50 in one year and closed at US$36.33 on July 7.
Quanta Services, Inc. (NYSE:PWR)
One-year return: 51.56%
Quanta Services provides infrastructure solutions for the electricity, gas, pipeline, energy, and communication sectors. Its two reportable segments are electric power infrastructure solutions and underground utility and infrastructure solutions.
The company is headquartered in Houston, Texas.
The company had a market capitalization of US$19.01 billion as of July 8, 2022. It offered a dividend yield of 0.22%, with an annualized dividend per share of US$0.28. Its P/E ratio stood at 40.08, and the forward P/E for one year was 22.80.
The company posted a net income of US$85.03 million for the quarter ended March 31, 2022, on revenue of US$3.97 billion. The net income and revenue were US$91.3 million and US$2.7 billion, respectively, in the March quarter of 2021. Its earnings per share diluted for the March quarter in 2022 and 2021 were US$0.57 and US$0.62, respectively.
The stock traded in the range of US$140.04 to US$84.40 in one year and closed at US$132.25 on July 7.
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Cornerstone Building Brands, Inc. (NYSE:CNR)
One-year return: 45.78%
Cornerstone Building Brands sells building materials for residential, commercial, and repair industries. The North Carolina-based company has three operating segments: commercial, siding, and windows.
The company had a market capitalization of US$3.13 billion as of July 8, 2022. Its P/E ratio stands at 4.11, and the forward P/E for one year is 8.99.
The company generated a net sale of US$1.57 billion for the quarter ended April 2, 2022, compared to US$1.27 billion for the same period in the previous year. Its net income came in at US$102 million or US$0.79 per share diluted, compared to a net loss of US$1.7 million or US$0.01 per share diluted in the March quarter of 2021.
The stock traded in the range of US$24.61 to US$13.51 in the last 52 weeks and closed at US$24.55 on July 7, 2022.
FTI Consulting, Inc. (NYSE:FCN)
One-year return: 37.28%
Washington-based FTI Consulting provides professional business advisory services to customers. Its five operating segments are corporate finance and restructuring, economic consulting, forensic and litigation consulting, technology, and strategic communications.
The company had a market capitalization of US$6.47 billion as of July 8, 2022. Its P/E ratio stands at 29.05, and the forward P/E for one year is 27.31.
FTI will release its second-quarter earnings results on July 28, 2022.
For the quarter ended March 31, 2022, the company generated revenue of US$723 million compared to US$686 million the prior year. Its net income was US$59.3 million or US$1.66 per diluted share versus US$64.5 million or US$1.84 per diluted share in the year-ago quarter.
The stock traded in the range of US$188.61 to US$131.50 in one year and closed at US$187.64 on July 7.
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Dycom Industries, Inc. (NYSE:DY)
One-year return: 36.11%
Dycom Industries provides specialty contracting services, including engineering, construction, maintenance, and installation services in the US.
Its contract revenue for the three months ended April 30, 2022, was US$876 million versus US$727 million for the corresponding period in 2021. Its net income came in at US$19.5 million or US$0.65 per diluted share compared to US$0.898 million or US$0.03 per diluted share in the same quarter in 2021.
The company had a market capitalization of US$2.80 billion as of July 8, 2022. Its P/E ratio stands at 42.86, and the forward P/E for one year is 28.79.
The stock traded in the range of US$105.28 to US$62.88 in one year and closed at US$94.72 on July 7, 2022.
Bottom line:
The industrial sector comprises a few of the world’s oldest companies that withstood many economic hard times. Still, investors should carefully analyze the companies before investing in stocks.
