The best industrial stocks to buy right now? 3 trendy names to watch

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3 main industrial stocks to watch in June 2021

It wouldn’t surprise me to see this industrial stocks are still among the most active stocks in the stock market today. After all, as most know, the US economy remains booming. In turn, industrial companies, which arguably are the backbone of the economy, could also thrive. While the consensus is, how is the economy doing right now?

For starters, the labor market continues to improve, with jobless claims falling to 406,000 last week from an estimated 425,000. This marks another trough in the era of the pandemic. Meanwhile, rising inflation rates have recently raised concerns among investors. This could be explained by the sharp rise in the consumer price index to an annualized rate of 4.2% in April. According to a Bureau of Labor Statistics report, this is the biggest leap forward in 12 years. However, the deputy director of the National Economic Council, Bharat Ramamurti, said last week that “is a good sign“. According to Ramamurti, the rapid rise in consumer prices shows that “the economy is recovering faster than many people expected“. As such, I could see investors now eyeing major industrial stocks.

For example, we could look at Johnson Controls International (NYSE: JCI), an Ireland-based building safety equipment company. Last week, Barclays (NYSE: BCS) analyst Julian Mitchell hit JCI stock with an overweight rating. Meanwhile, agricultural manufacturing company John Deere (NYSE: DE) appears to be on the rise as the economy booms. Overall, JCI and DE actions have more than doubled over the past year. Still, investors seem to be interested in the major industrial stocks in the current stock market. If you are too, here are three to know now.

Industrial stocks to buy [Or Sell] This week

Semiconductor manufacturing in Taiwan

First, we will take a look at the Taiwan Semiconductor Manufacturing Company (TSM). In short, it is currently the largest semiconductor manufacturer in the world. According to TSM, 85% of the world’s prototypes of semiconductor startup products are activated through the company and its collaborations.

Source: TD Ameritrade TOS

Today, semiconductors are one of, if not the most important, components in the manufacturing process of virtually all modern technology. From our smart devices to our automobiles, semiconductor chips act as the brains of it all. By extension, this would make TSM stock a relevant industrial tech game in our world today. As it stands, TSM stock is sitting on gains of over 120% over the past year.

Now, the number one investor concern with TSM is said to be the current global shortage of semiconductor chips in the world. To address this long-term problem, TSM plans to invest $ 100 billion to expand its chip manufacturing capabilities over the next three years. Subsequently, President Mark Liu provided a positive operational update during an interview with CBS last month. According to Liu, TSM is looking to catch up with requests for automatic chips by the end of June. There is no doubt that the company appears to be shifting into high gear right now, as demand for semiconductors remains at record levels. Considering all of this, would you consider TSM stock to be a buy right now?

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Vertex Energy Inc.

Vertex Energy is another industrial player currently targeted. For certain contexts, Vertex is a specialized refiner of alternative raw materials. The Texas-based company also markets high purity petroleum products. Notably, Vertex is one of the largest converters of used motor oil in the United States. In terms of scale, the company has an annual processing capacity of over 115 million gallons of oil. More importantly, VTNR stock appears to be on investor radars as it more than quadrupled in value last week.

best industrial stocks (VTNR stock)Source: TD Ameritrade TOS

Getting to the heart of the matter, investors are likely to react to the company’s latest acquisition. On May 26, Vertex fully acquired Mobile Chemical LP Refinery from Royal Dutch Shell (NYSE: RDS.A). With this $ 75 million deal, Vertex is essentially strengthening operations at all levels. As CEO Benjamin Cowart pointed out, this acquisition is that of Vertex.the biggest and most important transaction ever“. According to Cowart, the movement positions Vertex to become a “leading regional supplier of renewable and conventional products“. Ideally, the transaction is expected to close by the fourth quarter of 2021.

Long term, Vertex also appears confident in its recent purchase. As a first step, Vertex will convert the hydrocracking unit of the Mobile refinery, which will be completed by 2022. Then, the company projects that it could potentially generate ”at least $ 3 billion in revenue and $ 400 million in gross profitFor the whole of 2023. Sure, those numbers are impressive, but time will tell if Vertex can do it. Anyway, do you consider VTNR stock worth investing now?

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Lockheed Martin Corporation

The Lockheed Martin Corporation completes our list. For the uninitiated, Lockheed Martin is a global leader in aerospace, military support and security technologies. Thanks to its large portfolio, the company is also one of the largest, if not the largest, defense contractors in the world. Safe to say, when it comes to national security, Lockheed Martin would be a leader in the field. Likewise, investors wishing to invest in the defense industry would turn to LMT stock now.

best industrial stocks to buy (LMT stock)Source: TD Ameritrade TOS

In its recent fiscal quarter released at the end of April, Lockheed Martin achieved total revenue of $ 16.3 billion for the quarter. On top of that, the company also saw a 47% increase in cash flow, totaling $ 2.93 billion. According to CEO James Taiclet, this strong quarter’s momentum puts the company in a good position for the future. In addition, Lockheed Martin also appears confident in raising its financial outlook for fiscal year 2021.

While all of this is great, the company is not yet resting on its laurels. As of last week, Lockheed Martin is currently working with General Motors (NYSE: GM). Essentially, the duo are developing next-generation lunar vehicles for the National Aeronautics and Space Administration (NASA). In theory, these vehicles will be used to transport astronauts to the surface of the moon. Given that Lockheed Martin is partnering with a big name in the auto industry, we might envision a powerful alliance here. As the company seeks greater heights in space exploration, do you think LMT stock could follow suit?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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