Top 3 Industrial Stock Picks for the New Year

Stocks to buy

Let’s take advantage of this new year by taking positions for our portfolio in one of the strongest and even most sustainable sectors. I am, of course, talking about industrial sector. These industrial stock picks are more than worthy of gracing your portfolio. The Dow Jones Index recently made a new all-time high, providing us with opportunities for the coming year. Let’s take a look at these three industrial stock picks for 2024 that have a good outlook for the coming months.

Union Pacific (UNP)

Source: Michael Rosebrock / Shutterstock.com

Union Pacific (NYSE:UNP) is a major player in the railroad industry, with an extensive network that is a crucial part of the United States transportation infrastructure.

Despite facing challenges such as reduced fuel surcharge revenues and lower business volumes, the company showed resilience in its third quarter 2023 financial results. With operating revenues of $5.9 billion, the 10% decline was mitigated by higher base prices.

What sets them apart is their commitment to sustainability. The announcement of a new international intermodal terminal in Phoenix reflects its dedication to providing customers with a greener rail option between the Los Angeles Basin and Southwest ports.

The terminal is scheduled to open in early 2024. The company aims to reduce truck traffic on congested freeways, emphasizing Union Pacific’s innovative and environmentally friendly approach.

The human touch is evident in the partnership with Duncan & Son Lines, a family-owned logistics company, for hauling support. This partnership not only underscores Union Pacific’s commitment to innovation, but also highlights its role in reducing truck emissions.

Kenny Rocker, executive vice president of marketing and sales, expressed his enthusiasm for offering a cost-competitive and environmentally friendly rail option to Arizona shippers and receivers.

Beyond commercial operations, they shine for their commitment to diversity and inclusion. The company earned a perfect score of 100% on the Human Rights Campaign Foundation’s Corporate Equality Index two years in a row. This achievement reflects the company’s dedication to LGBTQ+ equality in its policies, practices and benefits.

General Electric (GE)

Source: Sundry Photography / Shutterstock.com

General Electric (NYSE:GE) is that versatile company that is everywhere from airplanes to medical equipment to energy. They are the heroes behind aircraft engines, renewable energy technologies and other industrial products. The key to GE is its ability to innovate and excel in diverse industries.

They are having excellent financial performance, with an impressive increase in orders, revenues and profit margins during the third quarter of 2023. Not only does this mean they are doing things right, but it also means they are poised for sustainable growth.

In Spain, GE Vernova partnered with Forestalia to install huge wind turbines that will generate megawatts of power.

And in the UK, together with MYTILINEOS, they won a giant £1 billion contract to build high-voltage DC converter stations. This will bring green energy to more than two million homes.

RTX Corp (RTX)

Source: Jordan Tan / Shutterstock.com

RTX Corp, (NYSE:RTX) also known as Raytheon Technologies, is a key player in the aerospace and defense industry. Despite facing a 21% sales decline in Q3 2023 due to a Pratt metal powder issue, the company proved resilient with $19 billion in adjusted sales. Sales are currently up 12%.

Adjusted earnings per share (EPS) also increased 3% to $1.25. Maintaining strong operating cash flow of $3.3 billion and repurchasing $1.4 billion of its shares, RTX showed off its financial stability.

A major milestone is the $80 million contract awarded to them by the U.S. Navy for Advanced Prototype Electronic Warfare (ADVEW) prototypes. These prototypes, designed for the F/A-18 E/F Super Hornet, are intended to consolidate electronic warfare systems. This will provide a generational renewal to the Navy’s carrier air wing capabilities.

Another achievement is a $31.3 million contract for them to develop high-power microwave systems under the DEFEND program. This will provide cost-effective and reliable solutions against airborne threats.

Bryan Rosselli, Raytheon’s President of Advanced Products and Solutions, highlighted the importance of these advances in paving the way for the next generation of electronic warfare.

Colin Whelan, Raytheon’s President of Advanced Technology, highlighted the importance of non-kinetic defense systems in national defense strategy. He praised high-power microwave systems for their speed-of-light operation.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines 

Articles You May Like

Earnings Seasons Score Card: 4 Stock Superstars and 3 That Fell Short
3 Long-Term Stocks to Buy to Turn Pennies Into Millions
Blue-Chip Backbone: 3 Stocks for Unwavering Market Strength
3 Metaverse Innovators: The AI Stocks to Own Now
3 Tech Stocks Inflated and Ready for a Massive Fall