3 Quality Industrial Stocks to Buy in November

Diversifying With These 3 Industrial Stocks Can Be a Winning Strategy

Companies in the industrial sector are essential for keeping the economy rolling and could be in for strong performance going forward as the negative impacts of the pandemic start to subside. While these stocks might not seem as exciting as other areas of the market, it never hurts to add portfolio exposure to a variety of different businesses and industries. Any diversified investment strategy will include at least a few industrial stocks, and there are plenty of high-quality companies to choose from at this time.

Investors should take note of some true standouts in the sector to focus on this month, especially given how overbought some of the other areas of the market are at this time. It’s also worth mentioning that it's only a matter of time before a massive infrastructure bill is passed, which should benefit many of these companies in the long term. That’s why we’ve put together a list of 3 quality industrial stocks to buy in November to help you take advantage of some of the most attractive companies in the industry. Let’s take a deeper look below.

United Rentals (NYSE: URI)

If you are looking for a company that is perhaps best positioned to take advantage of the economic recovery and the large amount of federal infrastructure spending that will occur going forward, United Rentals is a nice pick. It’s the largest equipment rental company in the world, which means that this company plays a key role in commercial construction and industrial end markets. United Rentals offers about 3,800 classes of rental equipment including general construction and industrial equipment, aerial work platforms, traffic control equipment, and more, which means its customer base is quite diverse.

The company just reported Q3 earnings that included adjusted EPS of $6.58 vs. $5.40 year-over-year on $2.6 billion in revenue, an increase of 19% year-over-year. United Rentals also boosted its adjusted EBITDA forecast for the year, pointing towards a strong finish to the company’s fiscal year. It’s hard to find too many negatives about this industry-leading company, as its store network is about three times bigger than any other competitor in the equipment rental industry. Adding shares on dips could be a winning strategy in November, particularly with the stock trading around its all-time highs following earnings.

Louisiana-Pacific Corp (NYSE: LPX)

There’s a good chance that investors aren’t too familiar with the top forest products companies, but that doesn’t mean it’s an area of the industrial sector that should be ignored. Louisiana-Pacific Corp is a top name in forest products that produces oriented strand board, sliding, and engineered wood products, which are important for new construction, repair and remodeling, and outdoor structures markets. The stock offers a smart way to play the unprecedented demand in the housing market at this time and could be a great option to consider in November following the company’s latest earnings release.

In Q3, Louisiana-Pacific saw its net sales increase by 53% to $1.2 billion, which is impressive given that the company had to deal with headwinds from raw material prices and supply chain issues. LP reported EPS of $3.87, which beat the consensus EPS estimates by $0.45, and also announced an additional $500 million share repurchase authorization, which could be a strong catalyst for the stock in the coming sessions. With a 1.12% dividend yield, solid balance sheet, and plenty of trends working in the company’s favor, this industrial stock is one of the best names that no one is talking about.

Acuity Brands Inc (NYSE: AYI)

Last, we have Acuity Brands, an electrical equipment company that provides lighting solutions for commercial, industrial, infrastructure and residential applications. This stock has been shining bright throughout 2021 and has rallied over 75% year-to-date, yet more gains could be in store for investors as the stock continues to rally after the company’s latest earnings gap. Acuity Brands is another company that should benefit from the federal infrastructure bill, as its lighting solutions such as luminaires, lighting controls, lighting components, power supplies, prismatic skylights, and more are critical for commercial, industrial, and residential construction applications.

Investors should be attracted to the fact that Acuity Brands has achieved operational carbon neutrality, which means it’s a company that values sustainability. There’s also a lot to like about how a lot of the company’s project work that was delayed by the pandemic is picking back up, which should lead to strong earnings growth in the near term. Acuity Brands stock is starting to head higher after a few weeks of consolidation, which is another reason why it is a top industrial stock to consider buying in November.