Industrial Goods Sector Rally on Gains in Core Capital Goods -- Construction Spending Rises for the First Time in Over 6 Years
http://media.marketwire.com/attachments/201212/107982_FSE_Logo.gifhttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=991866&ProfileId=051205&sourceType=1NEW YORK, NY -- (Marketwire) -- 03/01/13 -- Shares of machinery companies received a boost Tuesday after the Commerce Department reported orders for so-called core capital goods posted a 6.3 percent sequential gain in January. Core capital goods include industrial machinery, construction equipment and computers. Five Star Equities examines the outlook for companies in the Semiconductor Industry and provides equity research on Pentair, Ltd. (NYSE: PNR) and Stanley Black & Decker, Inc. (NYSE: SWK).
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The jump in core capital goods is a strong signal that business investment is on the rebound in early 2013. The increase in January follows a 0.3 percent decline in December. "This was a really strong report as it indicates that businesses felt confident enough to order a ton of big ticket items in January," said Joel Naroff of Naroff Economic Advisors.
Additionally, the Commerce Department earlier this month reported that construction spending in 2012 totaled $850.2 billion, an increase of 9.2 percent when compared to 2011. The increase was the first in six years, yet still 27.2 percent below the 2006 all-time high of $1.17 trillion.
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Pentair delivers industry-leading products, services and solutions for its customers' diverse needs in water and other fluids, thermal management and equipment protection. The company currently offers investors an annual dividend of $0.92 a share for a dividend yield of approximately 1.75 percent. Shares of Pentair have gained over 8 percent year-to-date.
Stanley Black & Decker is a diversified global provider of power and hand tools, mechanical access solutions and electronic security and monitoring systems. The company reported revenues of $10.2 billion for the full year 2012, an increase of 8 percent when compared to the full year 2011. Shares of Stanley Black & Decker have gained over 6 percent year-to-date.
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