The heavy equipment and industrial machinery industry plays a vital role in driving economic growth and development across various sectors. From construction and manufacturing to mining and infrastructure, these companies provide the backbone for progress and efficiency.
The global heavy equipment and industrial machinery industry has experienced significant growth in recent years, driven by rising construction activities and government initiatives worldwide. According to an industry analysis report by Grand View Research, the global construction equipment market was worth $183.48 billion in 2022 and is expected to reach a value of $346.2 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.3% over the forecasted period. This growth is primarily attributed to increasing construction investments, government programs, and the demand for better infrastructure in developing economies.
The construction equipment market offers exciting opportunities, particularly with the emergence of electric construction equipment. Although in its early stages, electric equipment, such as battery-powered excavators and wheel loaders, presents numerous benefits in terms of maintenance, noise reduction, and operator convenience.
Region-wise, Asia Pacific dominated the construction equipment market, accounting for over 45.77% of the global revenue share in 2022. The APAC region is expected to grow its revenue share by 9.2% from 2023 through 2030. The region's robust growth is propelled by favorable government policies, increasing urbanization, and infrastructure development in major economies in the region such as China and India.
The heavy equipment and industrial machinery industry is expected to grow at a healthy high single-digit rate through 2030. Investing in heavy equipment and industrial machinery stocks can help investors capitalize on the secular growth trends of this industry. Some of the best heavy equipment and industrial machinery stocks to buy now include CNH Industrial N.V. (NYSE:CNHI), Caterpillar Inc. (NYSE:CAT), and Deere & Company (NYSE:DE). Let's now discuss these stocks, among others, in detail below.
We used Yahoo Finance's stock screener to screen for companies operating in the heavy equipment and industrial machinery industry. We compiled a list of 29 stocks and sourced each stock's hedge fund sentiment from Insider Monkey's database of approximately 900 institutional investors. Finally, the stocks that were the most widely held by hedge funds were selected for this list. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them.
Number of Hedge Fund Holders: 16
The Shyft Group, Inc. (NASDAQ:SHYF) is a leading global manufacturer of specialty vehicles for the commercial vehicle and recreational vehicle industries. This February, DA Davidson analyst Michael Shlisky revised his price target on The Shyft Group, Inc. (NASDAQ:SHYF) to $32 from $38 and maintained a Buy rating on the shares.
On April 27, The Shyft Group, Inc. (NASDAQ:SHYF) posted earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.12 and outperformed EPS estimates by $0.10. The company generated a revenue of $243.44 million, up 17.67% year over year and ahead of Wall Street consensus by $17.48 million.
Shares of The Shyft Group, Inc. (NASDAQ:SHYF) have gone up by 9.14% over the past 6 months, as of April 28, and the stock is offering a forward dividend yield of 0.80%. The Shyft Group, Inc. (NASDAQ:SHYF) is one of the best heavy equipment and industrial machinery stocks to buy now.
At the end of Q4 2022, 16 hedge funds were long The Shyft Group, Inc. (NASDAQ:SHYF) and held stakes worth $106.5 million in the company. Of those, Driehaus Capital was the leading investor in the company and disclosed a position worth $24.9 million.
Heartland Advisors made the following comment about The Shyft Group, Inc. (NASDAQ:SHYF) in its Q4 2022 investor letter:
“The Shyft Group, Inc. (NASDAQ:SHYF) is a leader in specialty vehicles, including “last mile” delivery vans used in ecommerce. More than a year ago, the company announced plans to develop an electric parcel-delivery vehicle, investing $75 million at launch. Concern over the elevated operational risks and spending associated with the program weighed on the stock, sending shares down almost 49% this year.
Number of Hedge Fund Holders: 23
Wabash National Corporation (NYSE:WNC) is a premier manufacturer of semi trailers and liquid transportation systems. As of April 28, the stock has returned 18.57% to investors over the past 6 months and is trading at a PE multiple of 8x. Wabash National Corporation (NYSE:WNC) is placed ninth among the best heavy equipment and industrial machinery stocks to buy now, according to hedge funds.
On April 26, Wabash National Corporation (NYSE:WNC) reported strong earnings for the first quarter of fiscal 2023. The company generated a revenue of $620.95 million, up 13.57% year over year. The company reported earnings per share of $1.04 and outperformed EPS estimates by $0.56.
On February 3, BMO Capital analyst Joel Tiss raised his price target on Wabash National Corporation (NYSE:WNC) to $27.50 from $17 and maintained a Market Perform rating on the shares.
Wabash National Corporation (NYSE:WNC) was a part of 23 investors' portfolios at the end of Q4 2022. These funds held collective positions worth $129.8 million in the company. As of December 31, Driehaus Capital is the top investor and has a stake worth $13.5 million.
ClearBridge Investments made the following comment about Wabash National Corporation (NYSE:WNC) in its Q4 2022 investor letter:
“One of the portfolio’s greatest contributors was Wabash National Corporation (NYSE:WNC), which designs, manufactures and distributes engineered solutions for the transportation, logistics and distribution industries. Continued strong demand for trailers helps drive sales for Wabash and benefited the stock price in the quarter. The company’s revamped pricing model has helped strengthen its margins and a growing backlog of new orders points to continued and greater potential value creation over the foreseeable future.”
In addition to CNH Industrial N.V. (NYSE:CNHI), Caterpillar Inc. (NYSE:CAT), and Deere & Company (NYSE:DE), Wabash National Corporation (NYSE:WNC) is also one of hedge funds' top picks from the heavy equipment and industrial machinery industry.
Number of Hedge Fund Holders: 24
Lindsay Corporation (NYSE:LNN) is an American manufacturer of farm & construction machinery and road & railroad infrastructure equipment. 24 hedge funds disclosed having stakes in Lindsay Corporation (NYSE:LNN) at the end of Q4 2022. The total value of these stakes amounted to $146.4 million. As of December 31, Impax Asset Management is the largest shareholder in the company and has a stake worth $12.1 million.
This April, Stifel analyst Nathan Jones revised his price target on Lindsay Corporation (NYSE:LNN) to $166 from $196 and reiterated a Buy rating on the shares.
On April 4, Lindsay Corporation (NYSE:LNN) released earnings for the fiscal second quarter of 2023. The company's revenue for the quarter amounted to $166.24 million, and the company reported an EPS of $1.63, beating market expectations by $0.09. Lindsay Corporation (NYSE:LNN) is one of the best heavy equipment and industrial machinery stocks to buy now.
Number of Hedge Fund Holders: 26
Oshkosh Corporation (NYSE:OSK) is a global company involved in the design and manufacturing of specialty trucks and access equipment vehicles. On April 27, Oshkosh Corporation (NYSE:OSK) posted market-beating earnings for the first quarter of fiscal 2023. The company generated a revenue of $2.27 billion, up 16.57% year over year and ahead of Wall Street consensus by $179.27 million. The company reported earnings per share of $1.59 and outperformed EPS estimates by $0.56.
Wall Street is bullish on Oshkosh Corporation (NYSE:OSK) and the stock is one of the best heavy equipment and industrial machinery stocks to buy now. This April, Stifel analyst Stanley Elliott updated his price target on Oshkosh Corporation to $101 from $109 and maintained a Buy rating on the shares.
Oshkosh Corporation (NYSE:OSK) was spotted on 26 hedge funds' portfolios at the end of Q4 2022. These funds disclosed collective stakes worth $318 million in the company. As of December 31, Greenhaven Associates is the dominant shareholder and has disclosed a position worth $153 million.
Number of Hedge Fund Holders: 26
Terex Corporation (NYSE:TEX) is a leading global manufacturer of materials processing machinery. The company has two business divisions: Aerial Work Platforms and Materials Processing. As of April 28, the stock has returned 28.54% to investors over the past 12 months. Terex Corporation (NYSE:TEX) is placed sixth among the best heavy equipment and industrial machinery stocks to buy now, according to hedge funds.
On April 12, Deutsche Bank analyst Nicole Deblase raised her price target on Terex Corporation (NYSE:TEX) to $53 from $51 and reiterated a Hold rating on the shares.
At the close of the fourth quarter of 2022, 26 hedge funds were bullish on Terex Corporation (NYSE:TEX) and disclosed positions worth $393 million in the company. Of those, Pzena Investment Management was the most prominent stockholder in the company and disclosed a position worth $175.3 million.
Stocks from the heavy equipment and industrial machinery sector that are currently on hedge funds' and analysts' radars include Terex Corporation (NYSE:TEX), CNH Industrial N.V. (NYSE:CNHI), Caterpillar Inc. (NYSE:CAT), and Deere & Company (NYSE:DE).
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Disclosure: None. 10 Best Heavy Equipment and Industrial Machinery Stocks to Buy is originally published on Insider Monkey.
