9 Of The Best Industrial Stocks to Buy In March 2023

Best Industrial Stocks To Buy

Companies in the industrial sector manufacture machinery, equipment, and supplies used in construction and manufacturing. These companies are closely connected to the economy, and their business volume often falls rapidly during recessions, and each industrial subsector performs differently.

On the other hand, industry companies are the main core of the economy. They manufacture products and machinery, which are in high demand. However, the main focus of this blog is to tell you the 9 of the best industrial stocks to buy in march 2023. If you are interested in buying industry stocks, then read this blog to know more about Industrial Stocks.

So, let’s get started.

What Are Industries Stocks?

Industry stocks are shares of companies that operate in a specific industry or sector, such as technology, healthcare, energy, consumer goods, or finance. Investors can purchase stocks in industries that they believe will perform well in the future or that match their investment goals or portfolio diversification strategy.

For example, an investor who believes that the healthcare industry will grow in the future may choose to invest in healthcare stocks, such as pharmaceutical or biotech companies. Alternatively, an investor who wants to diversify their portfolio may purchase stocks from various industries to spread their risk.

It’s important to note that various factors, such as economic conditions, industry trends, and company-specific events, can influence the performance of industry stocks. Therefore, investors should consider their risk tolerance before investing in any industry stock.

9 Of The Best Industrial Stocks to Buy In March 2023

I’ve compiled a list of the 9 largest companies in the industrial sector by market capitalization to help you find the best industrial stocks.

  1. United Parcel Service Inc. (UPS)
  2. Union Pacific Corp. (UNP)
  3. Honeywell International Inc. (HON)
  4. Caterpillar Inc. (CAT)
  5. Waste Management (NYSE:WM)
  6. Owens Corning (OC)
  7. 3M Co. (MMM)
  8. Illinois Tool Works Inc. (NYSE:ITW)
  9. FedEx (NYSE: FDX)

1. United Parcel Service Inc. (UPS)

United Parcel Service is number one on our list of best industrial stocks. The market cap of this company is about 143 billion dollars, with more than 8.5% average return over the last 5 years. 

However, Nothing is more iconic than those big brown UPS delivery trucks in the world of transportation and logistics. The company was founded in Seattle in 1907 and currently has headquarters in Atlanta. UPS became the first package delivery company to serve every address in the United States in 1975.

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Interestingly, UPS was a private company for most of the time, and it only became public in late 1999. UPS has greatly benefited from online shopping and e-commerce. On the other hand, the Covid-19 pandemic has also helped UPS to boost its business. This is the first best industrial stocks to buy.

2. Union Pacific Corp. (UNP)

The market capitalization of Union Pacific is about 125 billion dollars, with more than a 13% average return over the last 5 years. On the other hand, Union Pacific was founded in 1862. This company is one of the world’s oldest and largest publicly owned railroads. This iconic company’s history reflects the growth and changes in the entire United States economy over the last century.

However, Union Pacific is primarily a trucking company today, with headquarters in Omaha. Union Pacific’s stock price has more than doubled in the last five years, indicating that business is going well. This means you can easily get a profit when you invest in Union Pacific. But, it is very important to analyze and understand these stocks before investing. This is the second-best industrial stocks to buy.

3. Honeywell International Inc. (HON)

Honeywell is a diverse manufacturer of HVAC equipment, aerospace products, networking, and security technology. The origins of this manufacturing can be traced back to the late 1900s. However, the market capitalization of this company is about 117 billion dollars, with more than a 6% average return over the last 5 years. 

HON’s technology played a crucial role in the first moon landing in 1969. This company gets a big push in the PPE, which is Personal Protective Equipment, due to the COVID-19 pandemic. This is the third best industrial stocks to buy.

4. Caterpillar Inc. (CAT)

The fourth stock on our list is Caterpillar, the market capitalization of this company is around 90 billion dollars, with more than an 8% average return over the last 5 years. 

On the other hand, Caterpillar is a Chicago-based company. Caterpillar is a global leader in the production of heavy construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It also offers financing and other related services.

Caterpillar is working to develop more environmentally friendly equipment. It collaborates with businesses in the rail, energy, mining, and technology sectors to develop new low-carbon technologies. For example, it is developing battery- and hydrogen-powered electric trains. It is also working on zero-emission haul trucks and mining equipment. This is the fourth best industrial stocks to buy.

5. Waste Management (NYSE:WM)

The market capitalization of Waste Management is about 70 billion dollars, with more than a 12% average return over the last 5 years. On the other hand, Waste Management is one of North America’s leading waste management companies. It offers services such as collection, transfer, and disposal, as well as recycling and resource recovery. In addition, the company is leading in the development and operation of landfill gas-to-energy facilities.

Waste Management provides its services to customers in the residential, commercial, industrial, and municipal sectors. Waste Management has invested money over the years to automate and convert its vehicle to run on cleaner and cheaper natural gas.

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As a result, this allowed Waste Management to generate free cash flow consistently.

6. Owens Corning (OC)

The sixth stock on our list is Owens Corning (OC); the market capitalization of this company is around 8.61 billion dollars. On the other hand, the dividend yield and P/E ratio of this company are about 2.26% and 6.78, respectively. 

It was founded in the year of 1935 by the combination of two major American glassworks companies named Corning Glass Works and Owens-Illinois. 

However, Owens Corning is a global leader in producing glass fiber, which is used in composites, insulation, and roofing materials. Despite rising inflationary pressures, OC expects strong demand for its products across its business segments to continue in 2022.

The company will continue to execute and generate more than $1 billion in free cash flow, which can be allocated to strategic growth and shareholder capital returns.

7. 3M Co. (MMM)

The last stock on our list of best industrial stocks to buy is 3M Co. (MMM). The market capitalization of this company is nearly about 69.65 billion Dollars. However, the average volume and the P/E ratios are 2.67M and 10.98, respectively. 

3M (MMM) is one of the world’s most diverse industrial companies. Industrial is only one of 3M’s four major business sectors; the company is also a major player in transportation and electronics, technology, health care, and consumer goods. This is the last best industrial stocks to buy.

8. Illinois Tool Works Inc. (NYSE:ITW)

Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturer of industrial products and equipment. The company was founded in 1912 and is headquartered in Glenview, Illinois.

ITW operates in seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products, and Specialty Products. The company’s products include fasteners, adhesives, coatings, polymers, fluids, electronic components, test and measurement equipment, welding and food equipment.

ITW has a global presence with operations in over 55 countries and employs over 45,000 people worldwide. The company is committed to sustainability and has set targets to reduce its carbon footprint, increase the use of renewable energy sources, and improve waste reduction and recycling.

ITW has strong financial performance with a market capitalization of around $71.43 billion. The company has a consistent history of increasing dividends and has paid dividends for over 50 consecutive years. ITW also has a strong balance sheet and credit rating.

9. FedEx (NYSE: FDX)

FedEx (NYSE: FDX) is a multinational courier delivery services company based in Memphis, Tennessee. The company was founded in 1971 by Frederick W. Smith and has grown to become one of the world’s largest courier delivery services companies.

FedEx has a global presence with operations in over 220 countries and territories, employing over 600,000 people worldwide. The company operates a fleet of over 680 aircraft and over 180,000 ground vehicles.

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FedEx has strong financial performance with a market capitalization of around $49.95 billion. The company has a history of increasing dividends and has paid dividends for over 20 consecutive years. FedEx also has a strong balance sheet and credit rating.

FedEx is a well-established courier delivery services company with a global presence, strong financial performance, and a commitment to innovation. The company is positioned to benefit from the growth of e-commerce and has continued to expand its services to meet customers’ evolving needs.

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How to Identify the Best Industrial Companies

The question arises here is that how you can identify the best industry companies to invest in. The most popular industrial companies have diverse operations, low operating costs, and investment-grade credit ratings. Because of the complex nature of the industrial sector, diversification, a low-cost structure, and access to affordable debt are extremely important. Economic downturns reduce demand for industrial goods and services directly. 

Most industrial companies must borrow money in order to purchase new capital equipment and construct new manufacturing facilities. The advantage of a low-cost structure is that it is less vulnerable to rising cost pressures in inflationary environments.

While a company’s financial performance is always important to investors, industrial companies must maintain their strong financial positions. Interested investors should closely monitor how specific industrial companies perform during times of crisis.

What Are The Different Types of Industrial Stocks?

Like other stock market sectors, industrial stocks are also divided into sub-industries. The four major industrial sub-sectors are as follows:

1. Capital Goods

When most people think of industrial stocks, they probably think of companies that manufacture heavy machinery. These capital goods companies manufacture the equipment that is used to manufacture other goods, such as tooling and fabrication equipment, presses, and boilers.

2. Aerospace and Defence

The company that builds aircraft or manufacture weapons systems for national governments are among the biggest industrial stocks. On the other hand, the sub-industry also includes companies that make some hardware for space exploration, like rockets.

3. Transportation and Logistics

Logistics and transportation companies are among the largest industrial stocks, which may seem illogical. Airlines, railroads, trucking companies, and parcel delivery services specialize in transporting people and goods worldwide.

4. Building Supplies and Construction Equipment 

The machinery produced by industrial companies is used to create our built environment. Construction companies fall under this subcategory of industrial stocks, whether they help customers build single-family homes or skyscrapers, roads or bridges.

Conclusion

This is the end of this post which is the 9 of the best industrial stocks to buy in march 2023. In the end, it always depends on you whether you are going to buy any of these stocks. On the other hand, if you invest in the above-mentioned industrial stocks, then analyze them before investing. It is always crucial to know anything before investing. However, if you like this post, then make sure to comment down below. 

FAQs

Q1. What are the top stocks to buy right now?

If you are looking for top stocks to buy right now, you can check this post to get the whole knowledge of top stocks. On the other hand, below are some top stocks in which you can invest: 

1. Apple (NASDAQ: AAPL)
2. Costco Wholesale (NASDAQ: COST)
3. Amazon (NASDAQ: AMZN)
4. Alphabet (NASDAQ: GOOG)
5. Microsoft (NASDAQ: MSFT)

Q2. What industries are most popular right now?

Here are the 8 most popular industries among job-seekers right now:

1. Retail.
2. Food and hospitality.
3. Education.
4. Computer and information technology.
5. Health care.
6. Advertising and marketing.
7. Business and finance.
8. Arts and entertainment.

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