From Nasdaq:

Caterpillar CAT reported an impressive 35.5% improvement in fourth-quarter earnings, exceeding expectations due to increased demand for energy and transportation products. Despite industry challenges, the company also instills optimism in the Zacks Industrial Products sector. Other players like Ingersoll Rand IR, Lincoln Electric LECO, Terex Corporation TEX, RBC Bearings RBC are also anticipated to deliver strong earnings results.

The industrial products sector is poised for 3.7% earnings growth for the fourth quarter of 2023, with an expected 1.4% sales increase. Despite a 3.7% decline in industrial production and manufacturing output, certain areas such as transportation equipment, chemical products, and food & beverage products have shown stable demand. The New Orders Index, after 16 months of contraction, expanded in January 2024 to 52.5%, indicating a positive outlook.

Improvements in supply chain scenarios and increasing demand in key sectors like primary metals, transportation equipment and food, beverage & tobacco products are expected to positively impact fourth-quarter earnings for industrial companies. As manufacturers work to address consumer spending, inflation and supply chain disruptions, stability in demand and e-commerce activities contribute to industry performance.

Some of the top industrial stocks to watch this earnings season include Caterpillar, Ingersoll Rand, Lincoln Electric, Terex Corporation, and RBC Bearings. These companies have shown consistent growth and are expected to deliver positive earnings surprises in their upcoming releases.

Ingersoll Rand is expected to release fourth-quarter 2023 earnings on February 15, with a projected 5.6% year-over-year growth. Lincoln Electric’s fourth-quarter earnings are also imminent, estimated to show a 12.9% increase. Terex Corporation will release its earnings on February 8, anticipated to show 5.2% year-over-year growth, while RBC Bearings is slated to release its third-quarter fiscal 2024 earnings on the same day, with a projected 16.5% increase.



Read more: 4 Industrial Stocks to Beat Estimates This Earnings Season