This Day On The Street
Continue to site
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

When to Buy Industrial Stocks: Boeing, Caterpillar and GE

NEW YORK (TheStreet) -- On Monday, we saw a better-than-expected February reading for industrial production. So now how do we invest today?

I've crunched the numbers for nine key companies in the aerospace, industrial production and multi-sector conglomerate sectors following Monday's report. Production rose 0.6%, stronger than the 0.2% expected by Wall Street economists. The Federal Reserve shows production up 2.8% year-over-year with capacity utilization at 78.8%, which is 1.3% below the 1972 to 2013 average.

What's interesting to note is that the aerospace names that provide products and services to the U.S. military have been the best performers year-to-date, while the industrial and conglomerate names face the drag from weakened demand from emerging markets.

Here are the profiles based upon how we crunch the numbers. This should help you decide when to invest. Take a look at my chart on the next page for more quant analysis on these stocks.

Must Read: Last Chance to Buy Low on Apple Supplier Jabil Circuit

Boeing (BA - Get Report) ($125.42, down 8.1% YTD): The aerospace giant and Dow component set an all-time intraday high at $144.57 on Jan. 22, then traded as low as $118.77 on Feb. 5. Boeing is trading between its 200-day simple moving average at $120.22 and its 50-day SMA at $131.48, with the 21-day SMA at $127.60. The weekly chart is negative, with its five-week modified moving average at $128.31, and the pattern looks like a parabolic bubble that has popped. Quarterly and semiannual value levels are $120.52 and $117.06, with a semiannual pivot at $123.73 and monthly risky level at $144.42.

Caterpillar (CAT) ($95.67, up 5.4% YTD): The manufacturer of construction and mining equipment and Dow component set a 52-week intraday high at $98.24 on Feb. 24, and began the week between its 50-day SMA at $93.73 and its 21-day SMA at $96.66. The weekly chart is positive but overbought, with its five-week MMA at $94.77 and the 200-week SMA at $89.84. This chart shows a longer-term double-top at $116.55 in May 2011 and $116.95 in Feb. 2012, with a low in-between at $67.54 when the stock came close to its 200-week SMA. Monthly and quarterly value levels are $94.28 and $87.52, with an annual pivot at $95.79 and annual and semiannual risky levels at $97.90 and $118.44.

Deere (DE) ($87.49, down 4.2% YTD): The producer of agricultural equipment traded as low at $83.42 on Feb. 5, then rebounded to $89.67 on March 11 and is currently above its 50-day, 21-day and 200-day SMAs at $87.19, $86.48 and $84.87. The weekly chart is positive, with the five-week MMA at $87.06 and the 200-week SMA at $81.32. My weekly value level is $83.48, with monthly and quarterly risky levels at $88.38 and $91.97.

General Dynamics (GD) ($108.41, up 13.5% YTD): The aerospace and defense giant traded to an all-time intraday high at $113.57 on March 4. It is currently below its 21-day SMA at 108.95 and above its 50-day and 200-day SMAs at $102.93 and $90.12. The weekly chart is positive but overbought, with its five-week MMA at $105.68 in a pattern that I describe as a parabolic bubble. Annual value levels are $95.80 and $92.64, with monthly and weekly risky levels at $110.63 and $116.51.

General Electric (GE - Get Report) ($25.43, down 9.2% YTD): The multi-sector conglomerate and Dow component set an multiyear intraday high at $28.09 on Dec. 31, then traded as low as $24.32 on Feb 4. It is currently above its 200-day SMA at $24.12 and below its 21-day and 50-day SMAs at $25.54 and $25.78. The weekly chart is neutral, with the stock below its five-week MMA at $25.61 with rising stochastics. My weekly value level is $24.04 with semiannual risky levels at $27.22 and $27.76.

Lockheed Martin (LMT) ($164.07, up 10.4% YTD): The aerospace and defense company set an all-time intraday high at $168.41 on Feb. 24. It is currently on the cusp of its 21-day SMA at $163.95 and above its 50-day and 200-day SMAs at $156.59 and $133.33. The weekly chart is positive but overbought, with its five-week MMA at $159.79 in a pattern I describe as a parabolic bubble. Quarterly and annual value levels are $139.65 and $135.74, with weekly and monthly risky levels at $165.01 and $173.60.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
BA $131.71 -1.10%
GE $24.78 -1.50%
AAPL $113.08 -0.19%
FB $90.20 -0.89%
GOOG $632.62 0.36%

Markets

Chart of I:DJI
DOW 16,558.09 -84.92 -0.51%
S&P 500 1,975.19 -13.68 -0.69%
NASDAQ 4,800.5850 -27.74 -0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs