Manufacturing companies whose third-quarter earnings beat Wall Street estimates are best positioned to turn a profit when they report results in the coming weeks, according to analysts at financial services firm UBS.
“Positive reviews will be rewarded as the market sentiment and positioning have become more negative over the past month,” UBS analyst Chris Snyder said in an Oct. 10 report. “While we have viewed orders as the key industrial performance indicator since the beginning of the year, we are now prioritizing fourth quarter organic guidance as the KPI to watch as it will serve as a baseline for expectations for 2024.”
Organic growth, which typically excludes the effects of currency movements, mergers, acquisitions and divestitures, and earnings forecast revisions, will be key indicators for industrial companies.
amphenol (New York Stock Exchange: APH), Eaton (New York Stock Exchange:ETN), 3M (New York Stock Exchange: MMM), Trane Technologies (New York Stock Exchange:TT) and Stanley Black & Decker (New York Stock Exchange: SWK) are better positioned heading into earnings season, according to UBS. The bank is more cautious with WW Grainger (New York Stock Exchange: GWW), Hubbell (New York Stock Exchange: CENTER), Honeywell International (NASDAQ:HON) and Alegion (New York Stock Exchange: ALL).
