Franklin Electric Co. (FELE), General Cable Corporation (BGC): Electrical Equipment Companies for Your Portfolio

Although spending increases will probably restrain second-quarter share profits by $0.02 or $0.03, the benefits ought to be reaped in late 2013 and 2014. All told, Franklin Electric Co. (NASDAQ:FELE)’s strategy is sound, as it should limit the impact of market cyclicality over the long run through expansion activity. The shares are at an all-time apex and hold appeal for the near or long term.

Rockwell Automation (NYSE:ROK)’s management recently reduced its sales guidance for this year while leaving its net profit outlook at a 5% to 10% year-over-year advance. Indeed, sales are pegged to be only flat to up slightly in the near term due to weakness in its Europeans and Asian subsidiaries. Margins are expanding thanks to restructuring, cost reduction and process improvement initiatives.

The company, with two operating segments, Architecture & Software and Control Products & Solutions, ought to be well positioned for end market recoveries. It is a good selection for exposure to the electrical equipment sector.

Conclusion

The rundown of in-favor electrical equipment stocks is highlighted by companies taking aggressive initiatives toward boosting their revenue bases and/or improving their profitability. Given upward earnings projections and strong, liquid balance sheets, the entities are decent investments. Of the three evaluated here, the best for this year may well be Franklin Electric Co. (NASDAQ:FELE), while all are good long-term choices.

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

The article Electrical Equipment Companies for Your Portfolio originally appeared on Fool.com is written by Damon Churchwell.

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