The following are the top rated Industrial stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
JOHNSON CONTROLS INTERNATIONAL PLC (JCI) is a large-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Johnson Controls International plc offers smart, healthy and sustainable buildings, serving a range of customers. It operates through four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. Its Building Solutions North America, Building Solutions EMEA/LA, and Building Solutions Asia Pacific segments design, sell, install, and services heating, ventilation and air conditioning (HVAC), controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and provides technical services. Its Global Products segment designs, manufactures and sells HVAC equipment, controls software and software services for residential and commercial applications to commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide. Global Products segment also designs, manufactures and sells refrigeration equipment and controls.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of JOHNSON CONTROLS INTERNATIONAL PLC
LINDSAY CORP (LNN) is a small-cap growth stock in the Constr. & Agric. Machinery industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Lindsay Corporation is engaged in providing a variety of proprietary water management and road infrastructure products and services. The Company is engaged in manufacture and distribution of agricultural irrigation equipment. It has two segments: Irrigation and Infrastructure. Irrigation segment includes the manufacturing and marketing of center pivot, lateral move, and hose reel irrigation systems, which are used principally in the agricultural industry to increase or stabilize crop production while conserving water, energy and labor. The segment also manufactures and markets repair and replacement parts for its irrigation systems and controls. Infrastructure segment includes the manufacturing and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, road marking and road safety equipment, and railroad signals and structures. The principal infrastructure manufacturing facilities are located in Rio Vista, California; Milan, Italy; and Lindsay, Nebraska.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | NEUTRAL |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of LINDSAY CORP
ENERPAC TOOL GROUP CORP (EPAC) is a mid-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Enerpac Tool Group Corp. is an industrial tools, services, technology and solutions provider. The Company operates through Industrial Tools & Service (IT&S) segment. IT&S is a global supplier of both products and services to an array of end markets, including infrastructure, industrial maintenance, repair and operations, oil and gas, mining, alternative and renewable energy, and civil construction markets. Its primary products include branded tools, cylinders, pumps, hydraulic torque wrenches and highly engineered heavy lifting technology solutions. Its products include high-force hydraulic and mechanical tools (cylinders, pumps, valves, bolt tensioners, specialty tools and other miscellaneous products), which are designed to allow users to apply controlled force and motion. These tools operate at a pressure of approximately 5,000 to 12,000 pounds per square inch. Its branded tools and services are primarily marketed through the Enerpac, Hydratight, Larzep and Simplex brand names.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | NEUTRAL |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of ENERPAC TOOL GROUP CORP
AMERICAN WOODMARK CORPORATION (AMWD) is a small-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: American Woodmark Corporation is a cabinet manufacturer. The Company manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. The Company's cabinetry products are available in a variety of designs, finishes and finish colors and door styles. Its kitchen cabinetry and bath cabinetry products are offered across all product categories (made-to-order and stock) while its home organization products are exclusively stock products. Its products are sold on a national basis across the United States to the remodeling and new home construction markets. It services these markets through three primary channels: home centers, builders, and independent dealers and distributors. It operates approximately 18 manufacturing facilities in the United States and Mexico and eight primary service centers, and one distribution center located throughout the United States. Its brands include waypoint living spaces,1951 Cabinetry and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| INVENTORY TO SALES: | PASS |
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of AMERICAN WOODMARK CORPORATION
SIEMENS AG (ADR) (SIEGY) is a large-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Peter Lynch is 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Siemens AG is a Germany-based technology company, which is focused on the areas of automation and digitalization in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, smart mobility solutions for rail transport, and medical technology and digital healthcare services. The Company operates through the segments: Digital Industries, which offers products and system solutions for automation used in discrete and process industries; Smart Infrastructure, which supplies and connects energy systems and building technologies; Mobility, which combines all businesses in the area of rail passenger and rail freight transportation; Siemens Healthineers, which provides healthcare products, solutions and services; and Siemens Financial Services (SFS), which offers leasing solutions and equipment, project and structured financing in the form of debt and equity investments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| INVENTORY TO SALES: | PASS |
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of SIEMENS AG (ADR)
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
