Deere & Company (DE), Joy Global Inc. (JOY), Lindsay Corporation (LNN): Can These Heavy-Equipment Stocks Power Your Portfolio?

A huge infrastructure play in a small cap

Lindsay Corporation (NYSE:LNN) is a relatively small company valued at around $1 billion as of this writing. Lindsay Corporation (NYSE:LNN)’s share price is growing, and it’s acquiring businesses like Stettyn and Barrier Systems to shore up its hold on infrastructure. The company works with railways, waterways and roads among other infrastructure, and its business is helping people and goods move faster.

Lindsay Corporation (NYSE:LNN) has a 9.9% profit margin, which gives it the cash to grow and adapt to the changes it’s helping to create. As a tiny company, there is a lot of room for share- price appreciation – $1 billion could reasonably reach $3 billion or $4 billion in the next few years. While there is a 0.6% dividend, it seems more of a token payment that shouldn’t have a detrimental effect on cash flow. Lindsay Corporation (NYSE:LNN) is even trading at less than 17 times its earnings, which is lower than the S&P as of this writing.

Overall, you would be wise to look into this company. It might be a decent deal on a good stock.

The Foolish bottom line

Farm and construction equipment isn’t exactly in its heyday. But things are progressing, and these businesses are thriving. They are in an unpopular place, and this might be your chance to get a solid deal on great companies.

The article Can These Heavy-Equipment Stocks Power Your Portfolio? originally appeared on Fool.com and is written by Chris Hodge.

Chris Hodge has no position in any stocks mentioned. The Motley Fool owns shares of Lindsay. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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