5 Best Heavy Equipment and Industrial Machinery Stocks to Buy

In this article, we will take a look at the 5 best heavy equipment and industrial machinery stocks to buy now. If you want to explore similar stocks, you can go to 10 Best Heavy Equipment and Industrial Machinery Stocks to Buy.

5. AGCO Corporation (NYSE:AGCO)

Number of Hedge Fund Holders: 31

AGCO Corporation (NYSE:AGCO) is a leading global manufacturer of agricultural equipment and machinery. As of April 28, the stock is trading at a TTM PE ratio of 10.44 and is offering a forward dividend yield of 0.94%. AGCO Corporation (NYSE:AGCO) is placed fifth on our list of the best heavy equipment and industrial machinery stocks to buy now.

On April 12, Deutsche Bank analyst Nicole Deblase revised her price target on AGCO Corporation (NYSE:AGCO) to $137 from $140 and reiterated a Hold rating on the shares.

31 hedge funds held stakes in AGCO Corporation (NYSE:AGCO) at the close of the fourth quarter of 2022. The total value of these stakes amounted to $462 million. As of December 31, Balyasny Asset Management is the largest shareholder in the company and has a stake worth $80.9 million.

4. CNH Industrial N.V. (NYSE:CNHI)

Number of Hedge Fund Holders: 32

At the end of Q4 2022, 32 hedge funds were eager on CNH Industrial N.V. (NYSE:CNHI) and held stakes worth $1.1 billion in the company. Of those, Harris Associates was the leading investor in the company and disclosed a position worth $1.4 billion.

On April 20, Morgan Stanley revised its price target on CNH Industrial N.V. (NYSE:CNHI) to $20 from $21 and maintained an Overweight rating on the shares.

CNH Industrial N.V. (NYSE:CNHI) is trading at an attractive PE multiple and is offering a decent dividend yield. As of April 28, the stock has a TTM PE ratio of 9.40 and is offering a forward dividend yield of 2.80%. CNH Industrial N.V. (NYSE:CNHI) is one of the best heavy equipment and industrial machinery stocks to buy now.

Meridian Funds made the following comment about CNH Industrial N.V. (NYSE:CNHI) in its Q4 2022 investor letter:

“CNH Industrial N.V. (NYSE:CNHI) is the No. 2 global manufacturer of agricultural and construction machinery. A new management team in early 2021 started implementing a plan to simplify the business by divesting its less-profitable and non-competitive segments while bolstering its commitment to agricultural machinery. The operating improvements started taking hold in 2022 as the company shed its European heavy truck business and earnings growth accelerated on operational excellence late in the year. Additionally, the company announced a stock buyback plan and announced several autonomous solutions designed to reduce farming costs and aid sales growth. Despite uncertainties around the global macroeconomic outlook, CNH highlighted robust growth prospects for global farm machinery sales as the agricultural industry looks to offset inflation costs worldwide with increasingly automated farming techniques. Encouraged by the results and outlook, we increased the Fund’s position during the quarter.”

3. PACCAR Inc (NASDAQ:PCAR) 

Number of Hedge Fund Holders: 38

On April 25, PACCAR Inc (NASDAQ:PCAR) announced earnings for the fiscal first quarter of 2023. The company reported an EPS of $2.25 and outperformed EPS estimates by $0.42. The company’s revenue for the quarter grew by 31.83% year over year and amounted to $8.05 billion, ahead of Wall Street consensus by $275.89 million.

Wall Street analysts see material upside to PACCAR Inc (NASDAQ:PCAR) and the stock is one of the best heavy equipment and industrial machinery stocks to buy now. This April, BMO Capital analyst John Joyner raised his price target on PACCAR Inc (NASDAQ:PCAR) to $81.50 from $60 and reiterated a Market Perform rating on the shares.

PACCAR Inc (NASDAQ:PCAR)  was a part of 38 hedge funds’ portfolios at the close of Q4 2022. These funds held stakes worth $712 million in the company. As of December 31, Harris Associates is the top stockholder in the company and has disclosed a stake worth $187 million.

Madison Investments made the following comment about PACCAR Inc (NASDAQ:PCAR) in its Q1 2023 investor letter:

“Heavy duty truck manufacturer PACCAR Inc (NASDAQ:PCAR) has quietly been one of our best performers over the past year. It, too, has surprised us to some extent, with the resiliency that it’s showing in a slowing trucking market. We think there’s a decent chance that weakness in its end markets will eventually catch up with PACCAR, but we believe the stock is cheap, and its steady parts business will act as a moderate stabilizer in such a scenario.”

2. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50

As April 28, Caterpillar Inc. (NYSE:CAT) is trading at a TTM PE ratio of 16.18 and is offering a forward dividend yield of 2.19%.

On April 12, Deutsche Bank revised its price target on Caterpillar Inc. (NYSE:CAT) to $225 from $228 and maintained a Hold rating on the shares.

On April 27, Caterpillar Inc. (NYSE:CAT) posted strong earnings for the first quarter of fiscal 2023. The company generated a revenue of $15.86 billion, up 16.73% year over year and ahead of Wall Street estimates by $587.59 million. The company reported earnings per share of $4.91 and beat EPS expectations by $1.12.

Caterpillar Inc. (NYSE:CAT) was spotted on 50 investors’ portfolios at the end of Q4 2022. These funds disclosed collective positions worth $5.1 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the most prominent shareholder and has disclosed a position worth $1.7 billion.

Diamond Hill Capital made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 63

On February 22, Deere & Company (NYSE:DE) declared a quarterly cash dividend of $1.25 per common shares, up 4.2% from the company’s prior dividend of $1.20. The common stock cash dividend is payable on May 8 to shareholders of record on March 31. As of April 28, the stock is offering a forward dividend yield of 1.32%.

On April 14, DA Davidson analyst Michael Shlisky maintained a Buy rating and his $520 price target on Deere & Company (NYSE:DE).

Deere & Company (NYSE:DE) was held by 38 hedge funds at the close of Q4 2022. These funds held positions worth $3.6 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the top investor in the company and has a stake worth $1.6 billion.

ClearBridge Investments made the following comment about Deere & Company (NYSE:DE) in its Q4 2022 investor letter:

“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”

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