Expeditors International of Washington (NASDAQ:EXPD) generates around 30% of its revenue from the technology sector. According to the World Semiconductor Trade statistics, the global semiconductor revenue is estimated to grow at 4.5% this year and by 5.2% next year. This upward sales trend will be beneficial for airfreight companies, as semiconductor sales is 70% correlated with the airfreight. This will act as a tailwind to the Expeditors International of Washington (NASDAQ:EXPD) for upcoming quarters.
Growth from aviation and oil and gas segments
General Electric Company (NYSE:GE) is planning to expand in advanced technologies in its aviation segment. The company is planning to invest $27 million in the next five years in its Delaware facility. This facility makes advanced aircraft’s engine components from ceramic matrix composites, or CMC. Demand for CMC components is expected to grow ten folds over the next ten years. These components help in achieving higher fuel efficiency and lower emission.
As a result, the company’s GE9X engine is selected by Boeing for its forthcoming 777X aircraft. Owing to these developments, General Electric Company (NYSE:GE) aviation’s segment revenue will grow from $19.9 billion in 2012 to $22 billion in 2014.
General Electric Company (NYSE:GE) also announced on June 11, 2013, the supply of three of its Waukesha gas engines to its cryogenic natural gas processing plant in Texas. The plant’s start up is scheduled in January 2014. This gas plant will link with the Cuervo Cree pipeline, owned by Howard Energy — an independent midstream energy company.
This plant is an example of General Electric Company (NYSE:GE)’s gas technology, being used to support efficient and cleaner facilities to promote North America’s shale and unconventional resources. The revenue from this segment is likely to increase from $15.24 billion in 2012 to $17.94 billion in 2014.
Conclusion
CenturyLink, Inc. (NYSE:CTL) is counting on long term profit from its cloud computing segment, post its merger with Savvis. It also holds good growth prospects from its broadband services.
Expeditors International of Washington (NASDAQ:EXPD) is set for strong growth due to rise in its airfreight business. The company is also positive about its technology segment.
General Electric Company (NYSE:GE) is focusing on strong revenue opportunities from its two major segments, aviation and oil and gas.
Due to these optimistic trends, I recommend a buy for all the three stocks.
Madhu Dube has no position in any stocks mentioned. The Motley Fool owns shares of Expeditors International of Washington and General Electric Company. Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Top 3 Buys From the World’s Largest Hedge Fund originally appeared on Fool.com is written by Madhu Dube.
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