uploads/2016/02/Industrial3.png

What Can Investors Expect from Industrial Sector Companies?

By

Updated

Moving averages

The Industrial Select Sector SPDR ETF (XLI) was trading 1.9% below its 100-day moving average as of February 19, 2016. Since the start of the year, the stock has been trading below its 100-day moving average. As of February 19, major Industrial sector stocks General Electric (GE), Union Pacific (UNP), United Technologies (UTX), Honeywell International (HON), and FedEx (FDX) were trading at an average of 2.8% below their 100-day moving averages.

As of February 19, Union Pacific and United Technology were trading 2.6% and 5.3% below their 100-day moving averages, respectively. Honeywell International was trading 5.8% above its 100-day moving average. FedEx was trading 11.4% below its 100-day moving average.

Since December 2, 2015, FedEx has been trading below its 100-day moving average. The 100-day moving average is a strong resistance point for the stock. Before December 2, 2015, the stock had traded above its 100-day moving average for one month.

Article continues below advertisement

Wall Street analysts’ consensus estimates

The above table shows the moving averages and analysts’ estimates for Industrial sector companies. Wall Street analysts’ consensus estimates indicate a 16% average upside for the Industrial sector. Over the next 12 months, FedEx could see an upside of 34.6% from its levels on February 19, 2016.

Wall Street analysts’ estimates for other major industrial sector companies over the next 12 months are as follows:

  • General Electric could see an upside of 14.1%.
  • Union Pacific could see an upside of 5.3%.
  • United Technologies could see an upside of 18.7%.
  • Honeywell International could see an upside of 7.5%.

In the next part, we’ll see the performance of the S&P 500’s (SPY) Healthcare sector.

Advertisement

More From Market Realist