2 Industrials Stocks to Hold Forever and 1 to Snub
Despite the broader economy's ebbs and flows, industrial businesses quietly power the physical assets we rely on. However, the industry faces challenges as its six-month return trails the S&P 500.
Janus (JBI): A Sell
* Underperforming core business with disappointing organic revenue
* Forecast revenue decline of 18% in the next 12 months
* Declining earnings per share over the past four years
Blue Bird (BLBD): A Buy
* Expanding operating margin and increased profitability
* Strong earnings per share growth of 113% over the last two years
* Growing returns on capital
Graham Corporation (GHM): A Top Pick
* Impressive 17% annual revenue growth
* Exceptional earnings growth, with EPS compounding at 298% annually
* Increasing free cash flow margin
Our Takeaway
Despite a lackluster industry performance, these two stocks possess enduring advantages:
* BLBD: Operating efficiency and strong profitability
* GHM: Market share gains and robust financial growth
Conversely, JBI faces business challenges and a declining financial trajectory, making it a stock to avoid.