RTX to IEP: Can these 5 industrial stocks beat recession fears?

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 RTX to IEP: Can these 5 industrial stocks beat recession fears?
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Highlights:
  • Northrop Grumman Corp’s (NYSE: NOC) net earnings were US$955 million in Q1, FY22.
  • Nielsen N.V. (NYSE: NLSN) revenue increased by 1.6% YoY in Q1, FY22.
  • Raytheon Corp (NYSE: RTX) expects sales of US$67.75 to US$68.75 billion in fiscal 2022.

The industrial sector manufactures heavy machinery for construction and manufacturing industries. The country’s economic health is critical for the performance of the sector.

The industrial segment has many sub-sectors, and each can have a different impact during a macroeconomic turmoil. On June 15, the US Federal Reserve increased the interest rates by 75 basis points to curb high inflation that has put the economy off balance.

Here we explore five industrial stocks that may be worth watching in Q3.

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Northrop Grumman Corporation (NYSE: NOC)

Northrop Grumman is one of the leading aerospace and defense firms based in Falls Church, Virginia. It has four operating segments: aeronautics, defense, mission, and space.

Its shares traded at US$452.563 at 11:41 am ET on June 16, down 1.28% from their closing price of June 15. Its stock value increased by 18.91% YTD.

The firm has a market cap of US$70.20 billion, a P/E ratio of 12.45, and a forward one-year P/E ratio of 18.49. Its current yield is 1.52%, and its annualized dividend is US$6.92.

The 52-week highest and lowest stock prices were US$492.30 and US$344.89, respectively. Its trading volume was 874,398 on June 15.

The company reported total sales of US$8.79 billion in Q1, FY22, compared to US$9.15 billion in the year-ago quarter. Its net earnings came in at US$955 million, or US$6.10 per diluted share, against an income of US$2.19 billion, or US$13.43 per diluted share, in Q1, FY21.

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RTX to IEP: 5 industrial stocks to explore amid recession fearSource: Pixabay

Nielsen N.V. (NYSE: NLSN)

Nielson is a media, information, and data analytics firm based in New York.

The stock traded at US$22.14 at 12:01 pm ET on June 16, down 2.25% from its previous closing price. The NLSN stock rose 7.3% YTD.

Its market cap is US$7.98 billion, the P/E ratio is 16.2, and the forward one-year P/E ratio is 12.65. Its current yield is 1.07%, and its annualized dividend is US$0.24.

The stock touched a peak price of US$27.79 and the lowest price of US$16.02 in the last 52 weeks. Its share volume on June 15 was 5,418,789.

The company reported revenue of US$877 million in Q1, FY22, up 1.6% YoY. Its net income was US$115 million, or US$0.29 per diluted share, against US$576 million, or US$1.59 per diluted share, in Q1, FY21.

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Quanta Services, Inc. (NYSE: PWR)

Houston, Texas-based Quanta Services offers infrastructure solutions to electricity, pipeline, and communication industries.

Its shares traded at US$115.86 at 1:23 pm ET on June 16, down 6.65% from their closing price of June 15. Its stock value soared 10.55% YTD.

The firm has a market cap of US$16.67 billion, a P/E ratio of 35.16, and a forward one-year P/E ratio of 21.44. Its current yield is 0.23%, and its annualized dividend is US$0.28. 

The 52-week highest and lowest stock prices were US$140.04 and US$84.40, respectively. Its trading volume was 1,631,871 on June 15.

The company reported revenue of US$3.96 billion, compared to US$2.70 billion in the same quarter of the previous year. Its net income came in at US$85.02 million, or US$0.57 per diluted share, against an income of US$91.31 million, or US$0.62 per diluted share, in Q1, FY21.

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Raytheon Technologies Corporation (NYSE: RTX)

Raytheon is a leading aerospace and defense conglomerate firm engaged in aerospace, intelligence, etc. It is based in Waltham, Massachusetts.

The stock traded at US$89.95 at 2:05 pm ET on June 16, down by 2.52% from its previous closing price. The RTX stock surged 6.11% YTD.

Its market cap is US$133.77 billion, the P/E ratio is 32.24, and the forward one-year P/E ratio is 19.35. Its current yield is 2.41%, and its annualized dividend is US$2.20.

The stock’s highest price was US$106.02, and the lowest price was US$79.00 in the last 52 weeks. Its share volume on June 15 was 4,139,228.

It reported sales of US$15.7 billion in Q1, FY22, up 3% YoY. Its net income was US$1.10 billion, or US$0.74 per share, compared to US$772 million, or US$0.51 per share, in Q1, FY21.

The company expects sales to be between US$67.75 and US$68.75 billion in fiscal 2022.

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Top industrial stocks: NOC, NLSN, PWR, RTX, IEP

Icahn Enterprises, L.P. (NASDAQ: IEP)

Icahn Enterprises is an industrial conglomerate firm engaged in energy, automotive, food packaging sectors, etc. The company is based in New York.

Its shares traded at US$48.603 at 2:10 pm ET on June 16, down 2.52% from their previous close. Its stock value fell 4.37% YTD.

The firm has a market cap of US$14.96 billion and a forward one-year P/E ratio of 115.95. Its current yield is 16.16%, and its annualized dividend is US$8.00. 

The 52-week highest and lowest stock prices were US$59.11 and US$48.93, respectively. Its trading volume was 660,117 on June 15.

The company reported revenue of US$4.08 billion in Q1, FY22, compared to US$3.38 billion in the year-ago quarter. Its net income was US$885 million, compared to US$599 million in Q1, FY21.

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Bottom line:

The S&P 500 industrial sector declined 16.43% YTD and 14.31% over the past 12 months. The overall S&P 500 index fell 20.48% YTD. Investors should exercise due diligence before investing in the stock market, given its highly volatile nature.

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