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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Industrial Stocks Funds Love for 2012

Stocks in this article: GE BA HON CAT UPS

Caterpillar

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

Get Adobe Flash player

Caterpillar (CAT) is having a great year in 2012 (it shows up on a recent list of the 5 Best-Performing Dow Stocks in 2012). Since the first trading day of the new year, shares have rallied by more than 25%, more than doubling the S&P's performance over that same period.

That's been a very good thing for fund managers; institutions picked up 1.65 million shares of Caterpillar last quarter, making it the third-most bought industrial stock of Q4. One buyer was Fortress Investment Group, which initiated a new 38,000-share position in the stock.

CAT is the biggest heavy equipment manufacturer in the world, serving the agriculture, mining, and construction industries with tractors, combines, backhoes, excavators and the like. The firm boasts an absolutely massive dealership network that spans the globe -- and as a result, CAT's primed to take advantage of demand in emerging markets like China and India.

While competition is strong in the heavy equipment business, Caterpillar boasts one of the strongest brands out there and the wherewithal to support massive R&D spending to keep it ahead of peers.

Thanks to a massive installed base, CAT is also able to generate significant service revenues. Today, those high-margin service calls make up almost half of the firm's sales; as the Caterpillar equipment worldwide ages, the firm should be able to take home consistent service fees to keep those machines working. Until owners are ready to upgrade to a new CAT model, that is.

This is another name that has strong tailwinds at play in 2012. With the firm's credit arm holding up pretty well during the recession, investors will be more apt to give CAT the benefit of the doubt during the next economic pullback.

Caterpillar also shows up on a list of 5 Stocks to Saely Make Money in Emerging Markets.

4 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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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