4 U.S. Industrials Stocks to Watch

Biden’s infrastructure plan could make industrial stocks great again

Vikram Barhat 11 November, 2020 | 12:45AM


The cloud of uncertainty around the outcome of the U.S. presidential election has finally lifted as Joe Biden defeated Donald Trump to become the 46th U.S. president. This would also be the cue for skittish investors to start hunting for opportunities in sectors with a history of a post-election bump.

One of those sectors is industrials. President-elect Joe Biden has proposed US$2 trillion worth of clean energy and infrastructure spending that will support the underperforming industrial sector. Industrials is currently the best of the worst performing sectors that are in the red so far this year. The S&P 500 Industrials (Sector) has returned -0.20% for the year to date, as of Nov 05, while the USD-denominated Morningstar US Industrials has fallen 0.70%, for the same period. By contrast, the S&P has gained more than 8% year to date.

These industrial stocks stand to benefit from increased spending as laid out in the president-elect’s economic agenda. As well, given their general sensitivity to economy, a better management of the coronavirus pandemic and the resultant economic recovery over time could provide a further tailwind for these businesses.

L3Harris Technologies Inc



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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Emerson Electric Co92.20 USD0.52
Jacobs Engineering Group Inc133.78 USD-0.10
KBR Inc39.87 USD0.89
L3Harris Technologies Inc210.72 USD-0.02

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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