Investor Indicator: Durable Goods Report Promising For Capital Goods Market

Posted:09/28/12
By:Freda Ding

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Investor Indicator: Durable Goods Report Promising For Capital Goods Market

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The US Commerce Department had some bad news yesterday: Durable goods orders sank 13.2% in August. Several news outlets have already pointed out that the slump is influenced primarily by a decrease in aircraft orders: Boeing (BA) saw orders plummet from July to August.

But there was a thick silver lining in capital goods orders, an indicator of future sales for upgrading business. It increased 1.1%.

The reaction in the market was immediate, perhaps best illustrated by Thor Industries (THO) which makes recreational and commercial busses, whose shares surged ahead of other capital goods producers. Manitowoc (MTW) did the same; it has two capital good markets: cranes and foodservice equipment.

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We list below some names on the front end of the US Commerce Department’s reports.

Use the Compar-O-Matic to see changes in monthly returns for the stocks listed below:

1. Boeing Co. (BA, Earnings, Analysts, Financials): Engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Market cap at $52.81B, most recent closing price at $70.25.

2. Thor Industries Inc. (THO, Earnings, Analysts, Financials): Together with its subsidiaries, manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories in the United States and Canada. Market cap at $1.82B, most recent closing price at $34.41.

3. Applied Industrial Technologies, Inc. (AIT, Earnings, Analysts, Financials): Distributes industrial supply products for maintenance, repair, and operational needs in the government and commercial sectors in the United States, Canada, and Mexico. Market cap at $1.75B, most recent closing price at $41.63.

4. Caterpillar Inc. (CAT, Earnings, Analysts, Financials): Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Market cap at $56.8B, most recent closing price at $86.95.

5. Manitowoc Co. Inc. (MTW, Earnings, Analysts, Financials): Engages in the manufacture and sale of cranes and related products, and foodservice equipment. Market cap at $1.72B, most recent closing price at $13.01.