Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 6% over the past six months. This drawdown was disappointing since the S&P 500 stood firm.
Some companies can grow regardless of the economic backdrop, but the odds aren’t great for the ones we’re analyzing today. On that note, here are three industrials stocks we’re passing on.
Market Cap: $14.65 billion
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Why Are We Cautious About CSL?
Carlisle’s stock price of $329.44 implies a valuation ratio of 14.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CSL.
Market Cap: $64.02 million
Originating from a research lab at MIT, Desktop Metal (NYSE:DM) offers 3D printers, production materials, and software to many industries.
Why Are We Hesitant About DM?
Desktop Metal is trading at $1.92 per share, or 0.3x forward price-to-sales. Read our free research report to see why you should think twice about including DM in your portfolio, it’s free.
Market Cap: $1.25 billion
An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.
Why Are We Out on BV?
At $12.90 per share, BrightView trades at 14.8x forward price-to-earnings. If you’re considering BV for your portfolio, see our FREE research report to learn more.
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
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