5 Machinery Stocks Gurus are Betting Big On—Up to 52% Gains Awaits!

Stocks

Stock	Price	52 Week Range	Marketcap	EPS	Dividend Yield	Chart (24H)	Sector	Employees	Last Updated
Westinghouse Air Brake Technolo WAB	$160.95		27.52B	6.04	0.62%		Industrials	29,000	2 days ago
Watts Water Technologies, Inc. WTS	$187.48		6.25B	8.70	0.92%		Industrials	5,100	2 days ago
Energy Recovery, Inc. ERII	$14.41		791.91M	0.40	0.00%		Industrials	269	2 days ago
85364 TECUA	$0.0000		0.0000	0.00	0.00%			0	6 years ago
Alamo Group, Inc. ALG	$165.81		2.00B	9.63	0.72%		Industrials	4,350	2 days ago

The machinery sector, a cornerstone of various essential industries, is currently experiencing robust growth and garnering increasing investor interest. This heightened attention is driven by advancements in technology and infrastructure that bolster the sector’s relevance, making it a critical area for savvy investors to consider. Our investigation has identified five stocks—Wabtec, Watts Water Technologies, Energy Recovery, Tecumseh Products, and Alamo Group—that have shown significant improvements in their Portfolio Grader rankings, signaling strong buy opportunities.

These companies span crucial industries such as rail, water technology, energy recovery, and agriculture, making their market positions even more compelling. Let’s dive into why these stocks warrant a place in your portfolio now.

Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace 

Westinghouse Air Brake Technolo

WAB

$160.95

7%

Wabtec (NYSE: WAB)

Wabtec (WAB): Leading Rail Industry Performance Surge

• Improved Rating: Wabtec’s Portfolio Grader rating improved to an A (“strong buy”) from B (“buy”) last week.
• Company Overview: Westinghouse Air Brake Technologies Corporation (Wabtec) is a leading provider of technology-based products and services for the global rail industry.
• Performance: Over the past month, Wabtec’s share price surged by 5.4%, outpacing the S&P 500’s 4.5% gain.
• Equity Subcategory: The company’s A rating in Portfolio Grader’s Equity subcategory reflects its strong market performance.

Relevance: Positioned within the critical infrastructure of the global rail industry, Wabtec stands to benefit immensely from ongoing advancements and investments in worldwide rail systems. This resilience and growth potential make it an attractive prospect for investors seeking long-term value.

Analyst Ratings Overview:

Summary of Analysts’ Outlook:

The analyst ratings for Westinghouse Air Brake Technologies (WAB) suggest a generally positive outlook. The consensus rating is “Strong Buy” across various sources, indicating high confidence in the stock’s future performance. The average price target ranges from $158.82 to $184.91, with potential gains predicted between 0.98% and 16.51%.

Watts Water Technologies, Inc.

WTS

$187.48

4%

Watts Water Technologies (NYSE: WTS)

Watts Water Technologies (WTS): In Demand for Water Safety

• Improved Rating: Upgraded from C (“hold”) to B (“buy”).
• Company Overview: Watts Water Technologies designs, manufactures, and sells products for water safety and flow control. Their portfolio addresses water quality, conservation, safety, and flow control needs.

Relevance: As water conservation and safety become paramount global issues, the demand for Watts Water Technologies’ products is poised to rise, positioning the company advantageously in a growing market. Watts Water Technologies’ appeal lies in its commitment to tackling global water challenges, making it a vital player in a sector intrinsic to both environmental sustainability and regulatory compliance.

Analyst Ratings Overview:

Summary of Analyst Outlook:

Watts Water Technologies (WTS) has a consensus rating of HOLD based on the ratings of six analysts. The average price target is $216.33, representing a potential gain of 17.97% from the current price of $178.26. Key analysts such as KeyBanc, Stifel Nicolaus, TD Cowen, and Deutsche Numis have provided variance in their price targets, indicating a mixed outlook on the stock.

Energy Recovery, Inc.

ERII

$14.41

4%

Energy Recovery (NASDAQ: ERII)

Energy Recovery (ERII): A Massive 52% Upside Potential

• Improved Rating: Advanced from B last week to A (“strong buy”).
• Company Overview: Energy Recovery develops and manufactures energy recovery devices for the water desalination industry.

Relevance: With global water scarcity intensifying, cutting-edge desalination technology positions Energy Recovery as a crucial solution provider ensuring sustainable water resources. The innovative edge in desalination technology not only sets Energy Recovery apart but also aligns it perfectly with urgent global needs, solidifying its role as a key investment in the sustainable water sector.

Analyst Ratings Overview:

Summary of Analyst Outlook:

The consensus rating for Energy Recovery, Inc. (ERII) is ‘BUY’ with an average price target of $20.5. This indicates a potential gain of 52.19% when compared to the current price of $13.47. The stock has received strong support from multiple analysts, with a buy rating from 4 analysts out of a total of 4. Additionally, the stock has been upgraded to a ‘Strong Buy’ by Raymond James, which further enhances its outlook.

85364

TECUA

$0.0000

0%

Tecumseh Products (NASDAQ: TECUA)

Tecumseh Products (TECUA): HVAC Market’s Best Kept Secret

• Improved Rating: Elevated from a B to an A rating.
• Company Overview: Tecumseh Products is a global manufacturer of hermetically sealed compressors, essential for residential and commercial refrigeration, air conditioning units, and heat pumps.

Relevance: Tecumseh’s products are critical to the HVAC and refrigeration sectors, which are seeing increasing demand due to rising global temperatures and the need for energy-efficient solutions. The strategic importance of Tecumseh’s offerings within the HVAC and refrigeration sectors, combined with growing market demand, underscores its potential for robust financial performance and sustained investor returns.

Analyst Ratings Overview:

Summary of Analyst Outlook:

Analyst ratings and forecasts for Tecumseh Products Company A (TECUA) are not readily available from the provided sources. There is no notable information or data points for TECUA, which may indicate a lack of coverage or a focus on other companies within the sector.

Alamo Group, Inc.

ALG

$165.81

3%

Alamo Group (NYSE: ALG)

Alamo Group (ALG): Agricultural Powerhouse with 29% Upside!

• Improved Rating: Upgraded from C to B (“buy”).
• Company Overview: Alamo Group designs, manufactures, and distributes equipment for right-of-way maintenance and agricultural use.

Relevance: With a diverse portfolio catering to infrastructure maintenance and agriculture, Alamo Group is strategically positioned to benefit from economic sectors tied to both public and private land management. The company’s diversified offerings, particularly in the essential areas of infrastructure and agriculture, provide it with a stable and growing revenue base, making it a reliable investment choice.

Analyst Ratings Overview:

Summary of Analysts’ Outlook:

• Consensus Rating: ALG has a consensus buy rating based on the recommendations of three Wall Street analysts.
• Average Price Target: The average 12-month price target for ALG is $212.00, indicating an expected price increase of 28.77% from the current price of $164.64.
• Forecasted Upside: The highest price target is $225.00, and the lowest is $201.00.

These five stocks have shown remarkable improvements in their Portfolio Grader rankings, marking them as potential leaders in the machinery sector. Given their strategic positions in essential industries and strong performance metrics, these stocks present compelling buy opportunities for market participants looking for robust investment prospects. Don’t miss out on these rising stars while the timing is ripe. For more detailed insights and to make informed investment decisions, visit Portfolio Grader.