DXP Enterprises – DXPE
Zacks Rank #1 (Strong Buy)With its stock hovering near 52-week highs we’ll start with DXP Enterprises (DXPE – Free Report), a global provider of pumping solutions, supply chain services, and maintenance repair for industrial customers.DXPE has been one of the top performing stocks this year, soaring over +130% in 2024. More intriguing is that the stellar rally could continue as DXPE checks an overall “A” VGM Zacks Style Scores grade for Value, Growth, and Momentum. Trading around $77, DXPE is still at a reasonable 19.5X forward earnings multiple which is slightly beneath its Zacks Manufacturing-General Industrial Industry average of 20.6X and the S&P 500’s 25.7X. Driving investor sentiment and momentum in DXP Enterprises stock has been the strategic acquisitions of Burt Gurney & Associates and Maxvac. These acquisitions are expected to boost the company’s presence as a value-added products and services provider to the water and pump markets. Notably, DXP Enterprises fiscal 2024 and FY25 EPS estimates have spiked over 14% in the last 30 days respectively.
Insteel Industries – IIIN
Zacks Rank #2 (Buy)Also landing an overall “A” VGM Zacks Style Scores grade is Insteel Industries (IIIN – Free Report). As one of the largest manufacturers of steel wire products in the United States, Insteel’s expansion appears to be overlooked at the moment with IIIN down 25% year to date. That said, Insteel’s stock is starting to look like a buy the dip candidate at under $30 a share. To that point, double digit sales growth is in the forecast for FY24 and FY25 with projections edging north of $600 million. More appealing is Insteel’s increased profitability with annual EPS expected to rise 12% in FY24 and projected to soar another 153% in FY25 to $2.81. Plus, earnings estimate revisions have remained higher over the last 60 days. Considering Insteel’s intriguing growth, IIIN now trades at a more reasonable 26.8X forward earnings multiple and under the optimum level of less than 2X sales.
Zebra Technologies – ZBRA
Zacks Rank #1 (Strong Buy) Rounding out the list is Zebra Technologies (ZBRA – Free Report), a leading manufacturer of thermal products including a wide range of thermal printers designed for various applications such as barcode labels, receipts, RFID tags, and cards. With ZBRA sitting on +40% gains for the year, Zebra Technologies robust bottom line is hard to overlook. Even better, annual earnings are now expected to jump 43% in FY24 to $14.04 per share versus EPS of $9.82 last year. Better still, FY25 EPS is projected to increase another 14%.Expecting steady sales growth, EPS estimates are noticeably higher over the last 60 days with Zebra Technologies benefiting from increased demand for digitalization and automation.
Bottom Line
These industrial products stocks look poised to outperform the broader market going into 2025. The expansion of DXP Enterprises, Insteel Industries, and Zebra Technologies also looks suitable for long-term investors with the trend of positive earnings estimate revisions suggesting now is the time to buy. More By This Author:Is Broadcom A Better Stock To Buy Than Nvidia?Bull Of The Day: Dave Inc 3 Food Industry Stocks To Feast On Before The New Year Rings In
