Three Innovative Industrial Income Stocks to Purchase Despite Risks

Three innovative industrial income stocks to purchase despite economic and geopolitical risks are tapping technological advances to thrust themselves toward enhanced success.

The three innovative industrial stocks to purchase feature a digital textile printer and a pair of agricultural machinery manufacturers. All three of those innovative industrial income stocks to purchase are rated by Chicago-based investment firm William Blair & Co. to “outperform” the market.

Investors need to beware that bearish sentiment has been big, laying the groundwork for an oversold rally where the huge price swings for the indexes may signal an inflection point, said seasoned Wall Street trader Bryan Perry, who leads the high income-oriented Cash Machine investment newsletter. Uncertainty has emerged from Ukraine, European fiscal policy, China’s ambitious rhetoric about Taiwan, stress in the debt market for developing nations, a strong dollar and persistent inflationary pressures propelling Fed rate hikes, he added.

Paul Dykewicz interviews Bryan Perry, head of the Cash Machine newsletter.

Three Innovative Industrial Income Stocks to Purchase Despite Rising Risks

“Earnings expectations have been dramatically lowered, setting the table for an earnings season rally, but one that will likely be limited in upside as the Nov. 2 Federal Open Market Committee (FOMC) meeting nears,” Perry wrote to his subscribers in an Oct. 18 update. “The latest inflation data was nothing short of hot and will not help market bulls hoping for any inklings the Fed will dial back its rate hikes to curb inflation.”

High inflation, further Fed rate hikes, risk of a recession in America and Russia’s sustained invasion of Ukraine that began Feb. 24 are sowing seeds of uncertainty that are worsened by economic woes in Europe and Asia, wrote Mark Skousen, a presidential fellow in economics at Chapman University, in his latest monthly Forecasts & Strategies investment newsletter. The biggest drag on the market is the Federal Reserve’s plan to reduce economic growth, demand and inflation, Skousen added.

Skousen, who analyzes of inflation, interest rates and monetary policy trends to recommend stocks and options in his weekly Home Run Trader advisory service, said data show a slowing U.S. economy, but no recession so far.

“Even though real gross domestic product (GDP) is slightly negative, second-quarter gross output (GO) — which measures total spending in the economy — grew by 1.7% in real terms,” Skousen stated. “GO includes the supply chain, which is still catching up from the lockdown-induced shortages.”

Mark Skousen, Forecasts & Strategies chief and Ben Franklin scion, meets Paul Dykewicz.

Three Innovative Industrial Income Stocks to Purchase Amid Russia’s Aggression

Russia’s shelling of hospitals, schools, residential areas, churches, nuclear power plants, oil refineries, a children’s playground, a park, a German consulate, a business center and a theater used as a shelter have targeted Ukrainian civilians who also have been brutally raped, tortured and executed. Those heinous acts in violation of international caused many nations to place continuing sanctions on Russia that included cutting back on buying grain, oil and natural gas exports.

Investors who want diversity in the industrial sector can consider an exchange-traded fund (ETF), said Bob Carlson, a pension fund manager who also leads the Retirement Watch investment newsletter.

Bob Carlson, leader of Retirement Watch, talks to Paul Dykewicz.

Carlson said he is monitoring Robo Global Robotics and Automation (ROBO), an ETF that seeks to follow an index focused on robotics-related or automation-oriented companies. However, the fund has fallen 39.31% so far in 2022 as technology and industrial companies slid in value.

Both sectors performed poorly as interest rates rose in 2022, Carlson commented. ROBO may rebound but Carlson has refrained from adding it to his newsletter’s recommended holdings.

Kornit Digital Digs in as One of Three Innovative Industrial Income Stocks to Purchase Despite Global Risks

Kornit Digital Ltd. (NASDAQ: KRNT), a Rosh HaAyin, Israel-based provider of sustainable, on-demand, digital fashion and textile production technologies, seeks to empower manufacturers of apparel, accessories and home goods to access “just in time” production. By eliminating preparation time to maximize manufacturing efficiency, Kornit’s systems create new opportunities for revenue to ensure profitability from large and small orders, shrink carbon footprint and mitigate vulnerability to sudden shifts in demand.

Print operations are designed to allocate their human and capital resources more effectively, grow their e-commerce business, repatriate operations and even more, according to Chicago-based investment firm William Blair & Co. Kornit Digital aims to give textile decorators the efficiency and agility they demand, while offering consumers the responsible production practices and self-expression they seek. The company aims to become a lynchpin for capitalizing on the digital supply chain by letting print businesses eliminate the guesswork from demand fulfillment to attain long-term success.

William Blair recently hosted Kornit Chief Executive Officer Ronen Samuel and Global Head of Investor Relations Andrew Backman at the investment firm’s conference on industrial innovation. Despite near-term risks, multiple secular tailwinds should boost Kornit and its transition to digital textile printing.

Three Innovative Industrial Income Stocks to Purchase Include Fashion Manufacturer

“Historically, fashion brands project what consumers will want to wear 12 to 18 months ahead of time and produce large volumes of clothing for the upcoming seasons,” William Blair wrote. “Consumers today want to be unique, which requires brands to produce lower volume runs more often.”

Plus, the textile industry typically wastes about 30% of the inventory produced, which is roughly 144 trillion liters of water squandered annually, according to William Blair. Kornit’s machines and inks are developed to operate low volume runs economically, compared to traditional screen printing.

On the sustainability side, Kornit’s Atlas MAX system uses up to 94% less water, 67% less energy and emits 82% less greenhouse gas emissions compared to screen printing, William Blair wrote. KornitX, the company’s marketplace solution, enables on-demand production closer to the point of need, allowing brands and fulfillers to obtain product from their orders quickly to compete with e-commerce companies like Amazon (AMZN) on delivery times.

In addition, KornitX continues to gain traction with customers and allows the expansion of their businesses without the need for large capital investments. KornitX currently operates on a revenue sharing model.

Chart courtesy of www.StockCharts.com.

Former Money Manager Names a Favorite Innovative Industrial Income Investment to Purchase

Michelle Connell heads Portia Capital Management, of Dallas, Texas.

AGCO Corporation (NYSE: AGCO), an agricultural machinery manufacturer in Duluth, Georgia, is delivering a 20% increase in both farmers’ productivity and profitability, according to William Blair & Co. In addition, AGCO’s precision products generally offer a two-year payback and, in some cases, a one-year payback, the investment firm indicated.

Some of AGCO’s innovation efforts focus on real-time “sense and react” in the field across a full crop cycle, the investment firm wrote. The use of “edge processing” and “advanced sensors” help maximize outcomes by enhancing productivity and sustainability for its customers, William Blair added.

AGCO intends for Fendt to be its premium brand in both North and South America, requiring a strong precision agricultural portfolio, a diverse array of solutions that work across the entire crop cycle and robust distribution and after-sales support, wrote William Blair. Fendt sales are expected to be $700 million in 2022, and then more than double to $1.5 billion in three to five years, with a further goal to achieve 20% market share in North America.

Chart courtesy of www.stockcharts.com

Three Innovative Industrial Income Stocks to Purchase Include AGCO

The company brings its newest equipment to the market, while the aftersales approach adds the latest technology to an existing piece of AGCO equipment. As for retrofitting, the company sells advanced, agronomic solutions to farmers who want to update existing pieces of equipment with modern technology economically.

Most analysts have AGCO rated to achieve upside of 30-35% in 12-18 months, former money manager Michelle Connell counseled. When AGCO reported results in July, the company beat its revenue and earnings per share estimates. However, it left its estimates for the second half of 2022 at the same levels, continued Connell, CEO of Dallas-based Portia Capital Management.

Plus, the company continues to experience strong demand, with a desirable order book into 2023, Connell said. Typically, at this time of year, the company does not have such a strong order base, she added.

Unless some external factors come into play, AGCO should experience strong financials for the end of the year, as well as next year, Connell counseled. Possible risks include economic exposure to the European Union (EU), as well as China, along with supply chain uncertainties. In addition, manufacturing in Europe could be affected by an upcoming energy crisis for the region this winter. But AGCO is expected to have enough alternative energy sources in the EU to remain largely protected. Finally, the company’s stock performance has been tied to economic cycles in the past.

AGCO benefits as the population of the world increases, since it needs to grow quality food amid declining acreage. Companies that manufacture equipment that maximize a farm’s acreage will continue to experience high demand, Connell concluded.

Deere Jumps into Three Innovative Industrial Income Stocks to Purchase Despite Dangers

Deere & Co. (NYSE: DE), an innovative agricultural machinery company headquartered Moline, Illinois, has done an “excellent job” supporting its stock price, Connell said. Deere also has used technology with its machinery to maximize crop yield, she added.

With an eye toward the future, Deere signed a definitive agreement to acquire majority ownership last December in Kreisel Electric, Inc., a battery technology provider in Rainbach im Mühlkreis, Austria. Kreisel develops high-density, high-durability electric battery modules and packs. Plus, Kreisel developed a charging infrastructure platform that uses patented battery technology.

Since 2014, Kreisel has developed immersion-cooled electric battery modules and packs for high-performance and off-highway applications. Kreisel has a differentiated battery technology and battery-buffered charging infrastructure to serve a global customer base across multiple end markets, including commercial vehicles, off-highway vehicles, marine, e-motorsports and other high-performance applications.

Deere management projects demand growing for batteries as a sole- or hybrid-propulsion system for off-highway vehicles. Products such as turf equipment, compact utility tractors, small tractors, compact construction and road building equipment could rely solely on batteries as a main power source. Deere keeps investing in and developing technologies to innovate, deliver value to customers and foster a future with zero emissions propulsion systems.

“Deere recently announced that it will re-shore a facility from China to Louisiana,” Connell said. “An existing facility in Louisiana will be expanded in terms of space and personnel. As this area of the country is totally dependent on the declining production of oil, this is very timely and needed.”

Chart courtesy of www.StockCharts.com.

Bivalent COVID-19 Booster Vaccines Could Boost Businesses

A new bivalent COVID-19 booster is available in the United States that gives increased protection against the omicron BA.5 variant, which has become the predominant strain of the virus. As a resident of Maryland, I received a phone call from the state’s health department on Tuesday, Oct. 11, advising me of the booster’s availability at pharmacies near my home. I acted quickly to receive the vaccine on Oct. 16.

Even though COVID cases and deaths can hurt supply and demand for innovative industrial stocks, availability of a new booster to enhance the vaccine’s efficacy should help business. Cases in the country totaled 97,165,873, as of Oct. 21, while deaths jumped to 1,067,545, according to Johns Hopkins University. America has amassed the most COVID-19 deaths and cases.

Worldwide COVID-19 deaths totaled 6,577,088, as of Oct. 21, according to Johns Hopkins. Global COVID-19 cases reached 627,187,937.

Roughly 80% of the U.S. population, or 265,591,330, have received at least one dose of a COVID-19 vaccine, as of Oct. 19, the CDC reported. People with at least the primary doses total 226,594,560, or 68.2%, of the U.S. population, according to the CDC. The United States also has given at least one COVID-19 booster vaccine to almost 111.4 million people.

The three innovative industrial income stocks to purchase are selling at discounted prices after the market’s 2022 drop. Despite high inflation, Russia’s war in Ukraine and rising recession risk after 0.75% rate hikes by the Fed in June, July and Sept. 21, the three innovative industrial income stocks to purchase show potent potential.