Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But their prominence also brings high exposure to the ups and downs of economic cycles.
Luckily, the tide is turning in their favor as the industry’s 18.1% return over the past six months has topped the S&P 500 by 8.9 percentage points.
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Industrial technology company Fortive (NYSE:FTV) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $1.02 billion. Its non-GAAP profit of $0.90 per share was 51.9% above analysts’ consensus estimates.
Shares of industrial technology company Fortive (NYSE:FTV) fell 3.2% in the afternoon session after the company reported second-quarter earnings that were viewed positively by investors despite some mixed metrics. The industrial technology firm reported second-quarter revenue of approximately $1.02 billion, which met analyst expectations but represented a slight year-over-year decline for its continuing operations. Adjusted earnings per share came in at $0.58, hitting the high end of the company's guidance range, although it was just below the consensus estimate of $0.59. Investors appeared to focus on the company's resilience and positive outlook. Fortive also provided a full-year adjusted earnings forecast that was in line with Wall Street's expectations, signaling stability. The results followed the company's successful spinoff of its Precision Technologies segment, a key strategic milestone.
Industrial technology company Fortive (NYSE:FTV) met Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $1.02 billion. Its non-GAAP profit of $0.58 per share was 2.1% below analysts’ consensus estimates.
The US market is yet to commence its session on Wednesday, but let's get a preview of the pre-market session and explore the top S&P500 gainers and losers driving the early market movements.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
