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Summary
- Machinery-maker Rockwell Automation reported 5.5% sales growth in Q2.
- Aircraft engine-maker Honeywell’s aerospace product sales plummeted 22% YoY in the quarter ended March 31 of this year.
- Shipbuilder Huntington’s revenue growth of less than 1% in Q1 is almost the same as last year’s quarter.
The industrial sector that makes heavy equipment for industries is an essential part of the economy. As such, their performance can be a barometer to a country’s economic health.
The pandemic has caused widespread disruptions in the industrial sector. Its impact is still being felt. Businesses are unable to clear orders due to a lack of adequate supplies of raw materials.
However, there’s growing optimism in the market as the government draws up a large fiscal spending plan, amounting to trillions of dollars to fight the recession over the next few years.
Here are three stocks that may benefit from the government’s economic stimulus package.
Rockwell Automation, Inc. (NYSE:ROK)
Rockwell manufactures various industrial machinery and components, like safety and security equipment and motor control devices.
Sales grew 5.5% to US$1.7 billion in Q2 ended April compared to US1.6 billion in the year-ago period.
Net income was US$415.0 million or US$3.54 per share, against US$132.2 million or US$1.13 per share in the year-ago quarter.
In April, the company announced a quarterly dividend of US$1.07 per share. Rockwell’s market capitalization is US$30 billion.
The stock was trading at US$260.20 per share at the close on Friday, May 21, up 0.72% from the previous session.
Source: Pixabay.
Also read: 5 Mining Stocks That May Prove A Right Fit As Economy Reopens
Honeywell (NYSE:HON)
Honeywell makes aircraft engines and other equipment for the aeronautical industry. The airline industry had been the worst hit during the pandemic. Hence, the engine-maker too suffered setbacks. But a resurgent US economy is bringing hope to the industry.
It declared a quarterly dividend of US$0.93 per share.
Its Q1 sales were US$8.5 billion, a decline of 2% on an organic basis.
Aerospace product sales plummeted 22% YoY in the quarter ended March 31 of this year.
Honeywell’s market capital is US$153.
Honeywell stock was up 0.48% to US$223.20 at the market close on Friday, May 21.
Also read: Two industrial stocks that put up a strong show despite pandemic
Huntington Ingalls Industries, Inc. (HII)
Huntington builds nuclear and non-nuclear ships for the navy and coastguard. It also provides oil and gas service and fleet support.
Huntington’s revenue growth of less than 1% in Q1 is almost the same as last year’s quarter. Its revenue was US$2.3 billion during the period.
Operating income of US$147 million was less than last year’s US$215 million in the same period. Q1 operating margin was 6.5%, against 9.5% in the corresponding period of 2020.
Net earnings were US$148 million, against US$172 million in Q1 of the previous year.
Huntington stock closed 0.52% up to US$213.67 in Friday’s session.
