Industrial stocks are vital to daily operations. Many investors are drawn to these companies due to their inherent need, whether it’s a period of strong economic growth or an overall downturn. The need for industrials never changes on a macro scale. Investors typically feel safe investing in industrials regardless of the overall economic background.
During times of economic recovery, industrials may thrive due to their increased capacity to focus on producing new products, expanding their workforce, and building new facilities. This will allow for growth potential compared to struggling economic times, which may lead companies to maintain and not expand.
Below, I discuss three industrial stocks that investors should consider due to their share price appreciation, which has all more than doubled within the last year. These stocks offer strong growth potential in the near and long term.
Blue Bird (BLBD)
Blue Bird (NASDAQ:BLBD) is a school bus manufacturer that sells natural gas, propane, electric, gasoline, and diesel buses. It also offers replacement parts and maintenance services.
Over the past year, its share price has increased by 131%, principally due to strong earnings growth and a large increase in total sales for its electric school bus models.
On May 8, Blue Bird announced its earnings for the second quarter of fiscal year 2024, in which it stated that total revenue increased by 15% and net income more than tripled to $26 million compared to the previous year. It also raised its total revenue projection for the full year 2024, which is now between $1.275 billion and $1.325 billion.
Blue Bird beat analyst expectations on earnings for the second quarter of FY 2024. It reported 500 electric school bus orders within its backlog, with total booking increasing by 56% year over year.
BLBD is an industrial small-cap stock that has been performing very well lately. All eyes are on earnings for the third quarter of FY 2024, which will be released on Aug. 7 after the market closes.
Powell Industries (POWL)
Powell Industries (NASDAQ:POWL) manufactures a wide range of primarily custom-made electrical products. It serves onshore and offshore oil and natural gas facilities, utilities, and data centers.
Over the past year, its share price has doubled due to a number of strong earnings reports and growth in new customer orders.
On Jul. 30, Powell Industries reported earnings for the third quarter of fiscal year 2024, stating that total revenue increased by 50% and net income more than doubled to $46 million compared to the year before. New customer orders for the quarter totaled approximately $356 million and a backlog valued at $1.3 billion.
The solid earnings report for the FY 2024 third quarter resulted in its share price skyrocketing by 38% following the release.
Powell Industries is poised for continued growth due to its large backlog and increased customer orders. Powell Industries has beaten analysts’ predictions on earnings growth for the last two years. When earnings for the fourth quarter of FY 2024 are reported, it could provide investors with impressive growth.
Limbach Holdings (LMB)
Limbach Holdings (NASDAQ:LMB) is a construction and engineering company that operates through a general contractor model and a direct relationship with the customer. It provides infrastructure management services, such as electrical, plumbing, and mechanical, for various institutions, including hospitals, manufacturing facilities, colleges, and sports centers.
On Aug. 6, Limbach Holdings announced its earnings for the second quarter of 2024, stating that gross profits grew by 18% and net income rose by 12% year-over-year.
Over the past year, Limbach Holdings’ share price has more than doubled due to strong financial results, such as direct owner relationship revenue increasing by 40% year-over-year, which is its most commonly used business model.
Limbach Holdings offers investors decent growth potential due to constantly improving margins and new product rollout.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
