Are you looking to turbocharge your investment portfolio? Today we’ve got something special for you—five machinery stocks that have recently seen an impressive ranking upgrade. This is your chance to catch these rising stars before the rest of Wall Street catches on. Let’s dive right in!
Proven Performance: Each stock on our list has received a recent upgrade in its rating, signaling strong performance and potential for future gains.
Sector Strength: Machinery stocks often serve essential industries, which brings both stability and growth prospects.
Timely Insight: With the Portfolio Grader tool signaling improvements, now could be the ideal time to invest before these stocks gain broader recognition.
High Returns: If you’re hunting for outsized returns, these machinery stocks are showing upward trends that indicate strong buy potential.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
1. Wabtec (NYSE: WAB)
Leading Innovation in Rail Technology
- Rating Upgrade: Recently upgraded to an A (“strong buy”) from a B (“buy”).
- Sector Leader: Wabtec, or Westinghouse Air Brake Technologies, is a leading provider of value-added, technology-based products and services for the global rail industry.
- Stock Performance: The stock price has surged by 6.8% over the past month, outperforming the S&P 500’s 4.1% gain during the same period.
- Equity Subcategory: Rated an A in Portfolio Grader’s specific subcategory of Equity.
Wabtec is trusted by the Portfolio Grader for its consistent performance, making it a sound bet in the reliable yet innovative space of rail industry technology. This stock is not only a solid performer but also has a history of delivering reliable returns.
Analyst Ratings Overview:
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Strong Buy | $179.13 | $158.05 | 0.92% | 10 |
Summary of Analysts Outlook:
The consensus rating for Wabtec is a Strong Buy, based on 10 Buy Ratings, 4 Hold Ratings, and no Sell Ratings. The average price target for Wabtec is $179.13, indicating a potential gain of 0.92% from the current price of $158.05.
2. Watts Water Technologies (NYSE: WTS)
Flow Control with Future Growth
- Rating Upgrade: Boosted from a C (“hold”) to a B (“buy”).
- Market Needs: Specializes in water safety and flow control products, addressing critical needs in various segments including water conservation and safety.
- Growth Indicators: The improvement in rating shows growing analyst confidence and potential for future growth.
Watts Water Technologies is strategically positioned within the essential water technology and safety industry. This company designs, manufactures, and sells a line of water safety and flow control products, making it vital in markets dedicated to water quality, conservation, safety, and control. With continuous rating improvement, the stock is gaining momentum and deserves a closer look.
Analyst Ratings Overview:
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Hold | $206.50 | $179.44 | 11.18% | 4 |
| Hold | $216.33 | $178.26 | 21.36% | 6 |
| Hold | $203.50 | $179.40 | 13.41% | 8 |
Summary of Analysts Outlook:
Analysts have a relatively optimistic view of Watts Water Technologies (WTS). The consensus rating is “Hold” across different platforms, indicating that the stock is expected to perform similarly to the overall market. The average 12-month price target for WTS ranges between $175 and $225, with the current stock price being around $179.44. This indicates potential gains of between 11.18% and 25.39% over the next 12 months. The analysts’ consensus reflects confidence in the company’s performance, with a high rate of exceeding earnings and sales estimates.
3. Energy Recovery (NASDAQ: ERII)
Making Waves in Desalination
- Rating Upgrade: Climbed from a B to an A.
- Niche Market: Develops and manufactures energy recovery devices for the water desalination industry, a sector poised for growth given global water scarcity issues.
- Future Potential: Global water scarcity issues make this a particularly relevant and promising sector.
Energy Recovery is primed for substantial growth due to its focus on a highly relevant and critical industry—water desalination. This company’s innovative products in energy recovery devices are essential for the water desalination sector, setting it up for long-term growth amidst rising global water scarcity concerns. The strong upward rating trend signals a high potential for significant returns, making it an attractive investment prospect.
Analyst Ratings Overview:
| Source | Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|---|
| Mesh | Strong Buy | $18.50 | N/A | 37.34% | 4 |
| MarketBeat | Strong Buy | $18.50 | N/A | 37.34% | 4 |
| Marketscreener | Buy | $20.50 | $13.43 | +65.19% | 4 |
