UNP, UPS among top 5 industrial stocks to keep an eye on in March

Highlights

• Union Pacific Corporation (NYSE:UNP) has a current dividend yield of 1.87% and an annualized dividend of US$4.72.
  
  
• Deere & Company's (NYSE:DE) current dividend yield is 1.12%, and the annualized dividend is US$4.20.
  
  
• Cornerstone Building Brands, Inc. (NYSE:CNR) has a P/E ratio of 4.07 and a forward P/E for one year of 7.71.

On Tuesday, the commerce department said that the construction spending increased 1.3% in January from the previous month. The year-on-year increase was 8.2% in January, driven by investment in private projects whose spending was up 1.5%.

Demand for single homes had grown faster than supplies as people rushed to buy homes before the banks raised their interest rates. 

The industrial sector comprises companies manufacturing heavy machinery, construction equipment and supplies, etc.

Here, we discuss five companies that gave returns in two digits.

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United Parcel Service, Inc. (NYSE:UPS)

Market Cap: US$184.8 billion

Closing price on March 3, 2022: US$212.43

UPS is one of the largest air freight companies. It has a fleet of over 500 planes and 100,000 vehicles besides hundreds of sorting facilities to deliver about 25 million packages daily across the globe. UPS is headquartered in Atlanta, Georgia.

For the fiscal year ended December 31, 2021, its revenue grew by 15% YoY to US$97.29 billion compared to US$84.63 billion in fiscal 2020. The net income rose by 860% to US$12.89 billion or US$14.68 per diluted share compared to US$1.34 billion or US$1.54 per diluted share in the previous fiscal year. 

Its stock traded in the price range of US$233.72 to US$157.55 in the last 52 weeks. It has a P/E ratio of 14.46, a dividend yield of 2.88% and an annualized dividend of US$6.08.

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Union Pacific Corporation (NYSE:UNP)

Market Cap: US$162.7 billion

Closing price on March 3, 2022: US$

Union Pacific is one of the largest public railroads in North America. The company is based in Omaha, Nebraska. It operates more than 30,000 miles of track in the US. UNP earned most of its revenue in 2021 from hauling industrial products, intermodal containers, coal, agriculture goods, chemicals, and automotive goods. 

The company generated total operating revenue of US$21.8 billion compared to US$18.25 billion in FY 2020. Its earnings per share diluted were US$9.95 on a net income of US$6.53 in FY2021, compared to EPS diluted of US$7.90 on a net income of US$5.35 billion in FY2020.  

Its stock traded in the price range of US$ 263.59 to US$195.68 in the last 52 weeks. UNP has a P/E ratio of 25.67, a current dividend yield of 1.87%, and an annualized dividend of US$4.72.

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Deere & Company (NYSE:DE)

Market Cap: US$117.2 billion

Closing price on March 3, 2022: US$381.93

Deere & Company manufactures agricultural equipment. The industrial machinery manufacturer is headquartered in Moline, Illinois. It sells products through a network of 1,900 dealers in North America and around 3,700 dealers worldwide.

For the first quarter ended January 30, 2022, its net sales and revenue were US$9.57 billion compared to US$9.11 billion in the previous year. DE generated a net income of US$903 million or US$2.92 per diluted share compared to US$1,224 million or US$3.87 per diluted share in the same period of 2020.

Its stock traded in the price range of US$400.34 to US$320.50 in the last 52 weeks. It has a P/E ratio of 21.17, a current dividend yield of 1.12%, and an annualized dividend of US$4.20.

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CSX Corporation (NASDAQ:CSX)

Market Cap: US$77.4 billion

Closing price on March 3, 2022: US$35.29

The company is based in Jacksonville, Florida. It hauls coal, intermodal containers, chemicals, automobiles, industrial merchandise, etc., over 21,000 miles of track in the eastern US. 

For fiscal 2021, CSX generated revenue of US$12.52 billion compared to US$10.58 billion in fiscal 2020. The net income rose to US$3.78 billion or US$1.68 per diluted share in FY 2021, compared to US$2.76 billion or US$1.20 per diluted share in fiscal 2020.

Its stock traded in the price range of US$38.01 to US$29.05 in the last 52 weeks. CSX has a P/E ratio of 21.01, a dividend yield of 1.16%, and an annualized dividend of US$0.40.

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Source: Pixabay

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Cornerstone Building Brands, Inc. (NYSE:CNR)

Market Cap: US$2.66 billion

Closing price on March 3, 2022: US$21.04

Cornerstone Building Brands Inc is engaged in construction and selling building materials in the US. The North Carolina based company manufactures materials for the residential, commercial and repair industries and has three operating segments: commercial, siding, and windows.

For the fiscal year ended December 31, 2021, it posted sales of US$5.58 billion compared to US$4.62 billion a year ago. Its net income was US$658 million or US$5.19 per share diluted against a net loss of US$482.78 million or US$3.84 per share diluted in fiscal 2020.

CNR stock traded in the price range of US$23.15 to US$11.44 in the last 52 weeks. It has a P/E ratio of 4.07 and a forward P/E for one year of 7.71.

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Bottomline

The federal reserve is considering raising the interest rate by a 25-basis point this month as part of its efforts to curb inflation. It indicated that there could be more rate hikes if the inflation does not ease. Amid these emerging scenarios, investors should be careful before taking stock positions. Moreover, the actual impact of the Ukrainian crisis is yet to be evaluated.