Should You Buy These 3 Industrial Stocks?

The industrial sector is a critical component of the global economy, and investors are always looking for opportunities to capitalize on its growth. In this article, we look closely at three fundamentally sound industrial stocks: nVent Electric plc (NVT – Get Rating), Vontier Corporation (VNT – Get Rating), and Espey Mfg. & Electronics Corp. (ESP – Get Rating) to help determine whether they are worth investing in.

The industrial sector has been recovering from the pandemic-induced slowdown, but the Fed’s aggressive rate hikes have raised concerns about its growth prospects. Higher interest rates have weighed heavily on the production at U.S. factories, as manufacturing output rose only 0.1% last month.

However, despite still-elevated inflation and strong headwinds of a recession, the sector has exhibited remarkable resilience, as evident from the Industrial Select Sector SPDR® Fund ETF (XLI) 22.9% returns over the past six months and 7.4% year-to-date.

Moreover, driven by the ‘electrification of everything’ trend, the global electrical equipment market is projected to reach $3.39 trillion by 2029, growing at a CAGR of 11.1%. The increasing demand for electricity, the focus on energy efficiency, and the adoption of smart grid technologies across industries are also propelling demand for more advanced and efficient electrical equipment.

Also, the global industrial machinery market grew from $506.67 billion in 2022 to $545.67 billion in 2023, exhibiting a CAGR of 7.7%. Further, the market is expected to reach $708.30 billion by 2027, expanding at a CAGR of 6.7%.

Given this backdrop…

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