In this piece, we will take a look at the five industrial stocks to invest in according to Ray Dalio’s Bridgewater Associates. If you want to learn more about the billionaire hedge fund owner, his fund, and more stocks, then take a peek at 10 Industrial Stocks to Invest In According to Ray Dalio’s Bridgewater Associates.
5. Albemarle Corporation (NYSE:ALB)
Bridgewater Associates’ Stake Value: $26 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 48
Albemarle Corporation (NYSE:ALB) is a specialty chemical manufacturer headquartered in the United States. The company deals almost exclusively with a host of industries and provides them with products that are used for several applications. The industries include consumer electronics, electric vehicles, pharmaceutical, oil and gas well drilling, and beef and poultry processing.
Mr. Dalio’s investment firm owned 111,616 Albemarle Corporation (NYSE:ALB) shares as last year’s fourth quarter came to an end. These were worth $26 million and they represented 0.15% of its investment portfolio. Insider Monkey’s Q4 2021 poll of 924 hedge funds revealed that 48 had owned a stake in the company, for an all time high since 2013.
Albemarle Corporation (NYSE:ALB) earned $894 million in revenue and $1.01 in non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. RBC Capital lowered the company’s price target to $270 from $290 in February 2022, as it stated that while the lithium industry is volatile, the company is sticking to its strengths.
Paul Marshall and Ian Wace’s Marshall Wace LLP is Albemarle Corporation (NYSE:ALB)’s largest investor. It owns 402.597 shares worth $94 million.
Carillon Tower Advisers mentioned the company in its Q3 2021 investor letter. Here is what the fund said:
“Albemarle is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The firm’s shares outperformed in the quarter, driven largely by the current robust demand environment for lithium used in the manufacturing of electric vehicle batteries. As the global push towards the reduction of carbon emissions continues to gain steam, Albemarle is well positioned to benefit from the accelerating adoption of electric vehicles.”
4. DuPont de Nemours, Inc. (NYSE:DD)
Bridgewater Associates’ Stake Value: $33.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.19%
Number of Hedge Fund Holders: 56
DuPont de Nemours, Inc. (NYSE:DD) is an industrial materials provider based out of the United States. The company counts a diverse set of industries in its customer list. These include the ever growing and ever important semiconductor industry, the printing industry, the display industry and transportation and industrial markets.
As its fiscal fourth quarter came to an end, DuPont de Nemours, Inc. (NYSE:DD) had posted $4 billion in revenue and $1.08 in non-GAAP EPS, beating analyst estimates for both. Deutsche Bank reduced the company’s share price target to $90 from $100 in March 2022 as it stated that the new target reflects the company’s updated guidance.
Mr. Dalio’s Bridgewater Associates had a $33.7 million stake in DuPont de Nemours, Inc. (NYSE:DD) during 2021’s fourth quarter. This was in the form of 418,205 shares and it represented 0.19% of the firm’s portfolio. Insider Monkey’s research of 924 hedge funds for the same time period revealed that 56 were the company’s investors.
DuPont de Nemours, Inc. (NYSE:DD)’s largest shareholder is David S. Winter and David J. Millstone 40 North Management who owns 5.6 million shares worth $454 million.
3. The Sherwin-Williams Company (NYSE:SHW)
Bridgewater Associates’ Stake Value: $37.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 54
The Sherwin-Williams Company (NYSE:SHW) is an American coating provider that targets several industries. These include the furniture and automotive industries, with products such as wood finish coatings and automotive refinish products catering to their needs.
Bridgewater Associates owned a $33.7 million stake in The Sherwin-Williams Company (NYSE:SHW) as the final quarter of last year came to an end. This was through 107,124 shares, and it represented 0.21% of its portfolio. Of the 924 hedge funds part of Insider Monkey’s Q4 2021 poll, 54 had also owned a stake in the company.
The Sherwin-Williams Company (NYSE:SHW) raked in $4.76 billion in revenue and $1.34 in non-GAAP EPS during its fourth fiscal quarter in a mixed bag of results that saw it meet analyst revenue estimates and miss them for revenue. Jefferies reduced the company’s share price target to $275 from $320 in March 2022, sharing that global energy price hikes will affect the company’s margins.
Richard Chilton’s Chilton Investment Company is the company’s largest shareholder. It owns 1.17 million shares worth $412 million.
2. PPG Industries, Inc. (NYSE:PPG)
Bridgewater Associates’ Stake Value: $39.6 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 35
PPG Industries, Inc. (NYSE:PPG) is a specialty materials provider that focuses on providing coatings to industrial users. The company sells coatings, solvents, adhesives, engineered materials, and chemical management services, among others, to a variety of industries. These include the automotive and commercial fleet repair sectors, alongside the aviation industry, metal fabricators, and ship manufacturers.
Mr. Dalio’s Bridgewater Associates owned 230,142 PPG Industries, Inc. (NYSE:PPG) shares as Q4 2021 came to an end. These were worth $39.6 million and represented 0.23% of its portfolio. During the same time period, 35 of 924 hedge funds polled by Insider Monkey had stakes in PPG Industries, Inc. (NYSE:PPG).
By the end of its fiscal fourth quarter, PPG Industries, Inc. (NYSE:PPG) had earned $4.19 billion in revenue and $1.26 in non-GAAP EPS, beating estimates for both. Jefferies lowered the company’s share price target to $130 from $170 in March 2022, stating that increasing energy prices will negatively impact the company’s margins.
PPG Industries, Inc. (NYSE:PPG)’s largest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management who owns 1 million shares worth $184 million.
Heartland Advisors mentioned PPG Industries, Inc. (NYSE:PPG) in its Q4 2021 investor letter. Here is what the fund said:
“A material advantage. While higher input costs and supply chain bottlenecks were a common theme across many industries, some areas were better suited than others to pass along price increases and navigate logistical challenges. The Materials sector is one example. The portfolio’s holdings in the space outperformed the benchmark average and contained a top contributor, PPG Industries Inc. (PPG).
PPG is the second-largest coatings supplier in the world and boasts the top market share in the industrial space, including auto refinishing and original equipment manufacturing (OEM), aerospace, and general industrial. The company is second only to Sherwin-Williams in the architectural coatings market.
Shares of PPG lagged sector peers in early autumn after management warned that earnings would come in lower than expected for the third quarter and withdrew sales guidance for the period. Shortages of key coating ingredients have tightened inventories and caused costs to rise. Externally, customers, including those in the automotive industry, have slowed production as they grapple with their own supply chain issues. The moves have had a chain reaction resulting in a decline in orders for PPG products.
The company has responded to the above headwinds by aggressively raising per-unit pricing including a 6% increase in the fourth quarter and another hike planned for the first quarter of 2022. PPG’s stock responded favorably as real-time indicators suggest cost pressures may be at or near a peak.
Despite PPG being a provider of key components for its customers and uniquely positioned to benefit from the shift toward electric vehicles (EVs), the company trades at a discount to historical levels against both the S&P 500 and its peers.”
1. TTrane Technologies plc (NYSE:TT)
Bridgewater Associates’ Stake Value: $45.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 28
Trane Technologies plc (NYSE:TT) is an Irish industrial firm that deals in ventilation, refrigeration, and heating products. These include air conditioners, terminal devices, furnaces, heat pumps, and vehicle refrigeration systems.
Trane Technologies plc (NYSE:TT) raked in $3.57 billion in revenue and $1.36 in non-GAAP EPS during its fiscal fourth quarter, beating analyst estimates for both. Wells Fargo reduced the company’s share price target to $174 from $185 in February 2022, outlining that the second half of this year carries the potential to help the company
During the final quarter of 2021, Bridgewater Associates had owned 226,276 Trane Technologies plc (NYSE:TT) shares. These were worth $45.7 million and the stake represented 0.26% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 research of 924 hedge funds outlined that 28 continued to invest in the firm.
Ian Simm’s Impax Asset Management is Trane Technologies plc (NYSE:TT)’s largest investor. It has a $340 million stake that comes through owning 1.6 million shares.
Disclosure: None. You can also take a look at 10 Best Semiconductor Stocks to Invest in According to Ken Griffin’s Citadel Investment Group and 12 Best Large-cap Biotech Stocks To Buy Now.
