This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Industrial Stocks Funds Love for 2012

Stocks in this article: GEBAHONCATUPS

General Electric

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

For better or worse, General Electric (GE) is your prototypical industrial name. The firm is involved in a bevy of heavy manufacturing segments, from making jet engines to wind turbines and medical equipment.

It was also the most heavily bought industrial stock in the final quarter of 2011 -- institutional investors picked up 76 million shares in the quarter, adding onto a massive position in the firm. For example, Bridgewater Associates increased its position in the stock by 18.8%, to 1.11 million shares, while Mairs & Power scooped up an additional 21,560 shares. GE is also one of Warren Buffett's stocks.

GE's businesses look disparate at first, but in reality, the firm is able make the puzzle pieces fit together and share technologies and customers across business lines. The wind turbine business, for instance, can benefit from the advances that the firm is making in the jet engine business -- and the firm can make money by financing all of those customers through its GE Capital arm.

The financial services unit was a black eye for GE just a few years ago as the economy got shaky; while most of the concerns about GE capital have abated, the financing business still makes up a very large part of GE's overall business. That's something buyers should keep in mind when they take on positions in GE.

Financially, this firm is in strong shape. While industrial manufacturing is a capital-intense business, GE carries significant cash reserves -- plenty to cover its 3.47% dividend yield (it's one of the top-yielding industrial stocks). Investors looking for industrial exposure in 2012 could do worse than this blue-chip.

>>5 Contrarian Blue-Chips That Could Pop in 2012

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs