Best Machinery Companies To Invest In 2014

Among the companies with shares expected to actively trade in Monday’s session are Caterpillar Inc.(CAT), Apple Inc.(AAPL) and Rayonier Inc.(RYN)

Caterpillar said its fourth-quarter earnings rose 44%, as the heavy-equipment maker cut costs to help offset a continuing decline in mining-machinery revenue. Shares rose 7.1% to $92.30 in premarket trading as the results topped consensus estimates and the company gave a promising outlook for the just-started year.

Apple Inc. is laying the groundwork for an expanded mobile-payments service, leveraging its growing base of iPhone and iPad users and the hundreds of millions of credit cards on file through its iTunes stores. Additionally, the Justice Department filed opposition to Apple’s push to block a court-appointed monitor of its e-book pricing reform. In a court filing Friday, the Justice Department said Apple’s motion failed “to establish irreparable harm” from having a monitor. Shares edged up 0.9% to $550.75 premarket.

Top 10 Mid Cap Companies To Watch For 2015: Weir Group PLC (WEIR)

The Weir Group PLC is engaged in engineering businesses. It operates in three segments: Minerals, Oil and Gas, and Power and Industrial. The Minerals segment provides slurry handling equipment and associated aftermarket support for abrasive high wear applications used in the mining and oil sands markets. The Oil & Gas segment provides products and service solutions to upstream, production, transportation, refining and related industries. The Power & Industrial segment designs and manufactures valves, pumps and turbines as well as providing specialist support services to the global power generation, industrial and oil and gas sectors. The Company�� subsidiaries include American Hydro Corporation, EnviroTech Pumpsystems Inc, Gema Industrigummi AB, Linatex Rubber Products Sdn Bhd and Mesa Manufacturing Inc. Advisors' Opinion:

• [By Inyoung Hwang]

  Weir Group Plc (WEIR) added 1.6 percent to 2,239 pence, the highest price in almost two months. The U.K.�� largest supplier of pressure pumps was raised to buy from hold at Berenberg Bank.

Best Machinery Companies To Invest In 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Monica Gerson]

  First Majestic Silver (NYSE: AG) is estimated to post its Q1 earnings at $0.10 per share on revenue of $63.35 million.

  Dr. Reddy's Laboratories (NYSE: RDY) is expected to report its Q4 earnings at $0.52 per share.

• [By Doug Ehrman]

  While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

• [By Doug Ehrman]

  Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

Best Machinery Companies To Invest In 2014: Giga-tronics Inc (GIGA)

Giga-tronics Incorporated (Giga-tronics), incorporated on March 5, 1980, includes the operations of the Giga-tronics Division and Microsource Inc. (Microsource), a wholly owned subsidiary. Giga-tronics Division designs, manufactures and markets a line of test and measurement equipment used in the development, test and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems and automatic testing systems. These products are used primarily in the design, production, repair and maintenance of commercial telecommunications, radar, and electronic warfare equipment. The Company manufactures products used in test, measurement and control. The Company has two segments: Giga-tronics Division and Microsource. In April 2013, it completed the sale of its product line known as SCPM to Teradyne, Inc.

Giga-tronics

The Giga-tronics Division produces signal sources, generators and sweepers, and power measurement instruments for use in the microwave and radio frequency (RF) range (10 kilohertz (kHz) to 50 gigahertz (GHz)). Within each product line are a number of different models and options allowing customers to select frequency range and specialized capabilities, features and functions. The end-user markets for these products can be divided into three segments: commercial telecommunications, radar and electronic warfare. These instruments are used in the design, production, repair and maintenance and calibration of other manufacturers' products, from discrete components to complex systems.

The Giga-tronics Division also produces switch modules and interface adapters that operates with a bandwidth from direct current (DC) to optical frequencies. These switch modules may be incorporated within its customers' automated test equipment. The end-user markets for these products are primarily related to defense, aeronautics, communications, satellite and electronic warfare, commercial aviation and semiconductors.

Microsource

The Microsource segment develops and manufactures a broad line of yttrium, iron, garnet (YIG) tuned oscillators, filters and microwave synthesizers, which are used by its customers in operational applications and in manufacturing a variety of microwave instruments or devices.

Giga-tronics competes with Agilent, Anritsu, EADS, Aeroflex and Rohde & Schwarz.

Advisors' Opinion:

• [By Monica Gerson]

  Giga-tronics (NASDAQ: GIGA) dropped 14.84% to $1.32. Giga-tronics' trailing-twelve-month profit margin is -30.58%.

  MER Telemanagement Solutions (NASDAQ: MTSL) dropped 14.62% to $2.09 after the company terminated MVNE solution provider agreement with SBC Communications.

Best Machinery Companies To Invest In 2014: Stanley Black & Decker Inc (SWJ)

Stanley Black & Decker Inc., June 4, 1901, is a diversified global provider of power and hand tools, mechanical access solutions (automatic doors, commercial and residential locking systems), electronic security and monitoring systems and products and services for various industrial applications. The Company�� operations are classified into three business segments: Construction & Do-It-Yourself (CDIY), Security, and Industrial. In September 2011, Stanley Black & Decker acquired Niscayah Group AB. In September 2011, the Company acquired Microtec Enterprises, Inc. In January 2011, the Company acquired InfoLogix, Inc. In December 2012, Spectrum Brands Holdings Inc acquired Hardware & Home Improvement Group (HHI) of the Company. In February 2013, the Company completed its acquisition of Infastech.

CDIY

The CDIY segment consists of the professional power tool and accessories business, the consumer power tool business, which includes outdoor products, plumbing (Pfister) and the hand tools, fasteners and storage business. The segment sells its products to professional end users, distributors and retail consumers. The majority of sales are distributed through retailers, including home centers, mass merchants, hardware stores, and retail lumber yards. During the year ended December 31, 2011, annual revenues in the CDIY segment represented 50% of the Company�� total revenues. The professional power tool and accessories business sells professional grade corded and cordless electric power tools and equipment, including drills, impact wrenches and drivers, grinders, saws, routers and sanders. The business also sells power tool accessories, which include drill bits, router bits, abrasives and saw blades.

The consumer power tool business sells corded and cordless power tools sold under the Black & Decker brand, lawn and garden products and home products. Lawn and garden products include hedge trimmers, string trimmers, lawn mowers, edgers and related accessories. Home pro! ducts include hand held vacuums, paint tools and cleaning appliances. The hand tools, fasteners and storage business sells measuring and leveling tools, planes, hammers, demolition tools, knives, saws and chisels. Fastening products include pneumatic tools and fasteners including nail guns, nails, staplers and staples. Storage products include tool boxes, sawhorses and storage units.

Security

The Security segment consists of the electronic security solutions and the mechanical access solutions businesses. Annual revenues in the Security segment represented 26% of the Company�� total revenues in 2011. The electronic security solutions business designs, supplies and installs electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The electronic security business also sells healthcare solutions, which includes medical carts and cabinets, asset tracking solutions, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products.

The electronic security solutions business sells to consumers, retailers, educational, financial and healthcare institutions, as well as commercial, governmental and industrial customers. Products are sold predominantly on a direct sales basis. The mechanical access solutions business sells and installs automatic doors, residential and commercial hardware, locking mechanisms, electronic keyless entry systems, keying systems, tubular and mortise door locksets. The mechanical access solutions business sells to both residential and commercial customers, with distribution through direct sales, through retailers (including home centers) and, through third party distributors.

Industrial

!

The In! dustrial segment consists of the industrial and automotive repair tools, engineered fastening and infrastructure businesses. Annual revenues in the Industrial segment represented 24% of the Company�� total revenues. The industrial and automotive repair business sells hand tools, power tools, and engineered storage solution products. The business sells to industrial customers in a variety of industries and geographies. The products are distributed through third party distributors, as well as a direct sales force. The engineered fastening business primarily sells engineered fasteners designed for specific applications. The product lines include stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld studs, engineered plastic fasteners, self-piercing riveting systems and precision nut running systems.

The business sells to customers in the automotive, manufacturing, and aerospace industries, amongst others, and the Company's products are distributed through direct sales forces. The infrastructure business consists of the CRC-Evans business, and the Company�� hydraulics business. The business�� product lines include custom pipe handling machinery, joint welding and coating machinery, weld inspection services and hydraulic tools and accessories. The business sells to the oil and natural gas pipeline industry and other industrial customers. The products and services are primarily distributed through a direct sales force.

Advisors' Opinion:

• [By Ben Rooney]

  Stanley Black & Decker (SWJ) tumbled roughly 10% after the power tools maker lowered its full-year earnings outlook. The company said it expected "uncertainty created by the U.S. government's sequestration and shutdown" to hurt business and consumer spending.

Best Machinery Companies To Invest In 2014: Cummins Inc.(CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Advisors' Opinion:

• [By Eric Volkman]

  Cummins (NYSE: CMI  ) has decided to inject a little power into its payout. The company has lifted its dividend, declaring a distribution of $0.625 per share to be paid on Sept. 3 to shareholders of record as of Aug. 22. That amount is $0.125, or 25%, higher than the firm's previous disbursement of $0.50 paid in early June.

• [By Dan Caplinger]

  So far, companies have looked to reduce costs in a number of ways. Wal-Mart (NYSE: WMT  ) has looked at paying for health-related travel costs to get patients suffering from heart and spine ailments to hospitals with better track records of success. Cummins (NYSE: CMI  ) has already moved some workers to high-deductible health plans that put more of the onus on employees to control their health care costs, but it has also implemented wellness programs to try to encourage healthier living that reduces the likelihood of incurring high costs from chronic conditions later in life.

Best Machinery Companies To Invest In 2014: AGCO Corporation (AGCO)

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company provides tractors, including compact tractors for small farms and specialty agricultural industries comprising dairies, landscaping, and residential areas; utility tractors, such as two-wheel and all-wheel drive versions for small and medium-sized farms, and specialty agricultural industries consist of dairy, livestock, orchards, and vineyards; and horsepower tractors for large farms and on cattle ranches for hay production. It also offers application equipment, which includes self-propelled, three and four-wheeled vehicles, and related equipment for use in the application of liquid and dry fertilizers, and crop protection chemicals; chemical sprayer equipment for planting crops; and related equipment that comprises vehicles for waste application, as well as provides combines. In addition, the company offers hay tools and forage equipment consisting rou nd and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners for harvesting and packaging vegetative feeds; and engines, such as diesel engines, gears, and generating sets. Further, it provides implements, including disc harrows for improving field performance; heavy tillage to break up soil and mix crop residue; and field cultivators for preparing smooth seed bed and destroy weeds, as well as offers tractor-pulled planters and loaders. Additionally, the company provides precision farming technologies to enhance productivity and profitability on the farm; and other advanced technology precision farming products to gather information, such as yield data, as well as offers wholesale financing and retail financing. It markets its products under the Challenger, Fendt, Massey Ferguson, and Valtra brand names through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia .

Advisors' Opinion:

• [By Mike the PhD]

  Historically the stock prices of Deere (DE) and other agricultural equipment firms and retailers like Case-New Holland (CNH), Titan Machinery (TITN), AGCO (AGCO), Tractor Supply (TSCO), Valmont (VAL), and Lindsay (LNN) have tended to closely track the price of corn. When corn prices go up, farmers tend to make more money, and they spend that money on new equipment from Deere and other firms. This relationship is especially strong for Deere and Corn, but it holds true for all of the stocks above to some extent. (Correlation coefficients between all of the stock prices above and corn are statistically significant to at least the 5% level, see my blog here for more details.)

• [By Ben Levisohn]

  Shares of Deere have dropped 0.7% to $93.65 at 3:49 p.m. today, while Agco (AGCO) has dipped 0.1% to $55.12, Toro (TTC) has gained 1% to $65.17 and Caterpillar (CAT) has risen 1.2% to $106.27.

• [By Dan Caplinger]

  Kubota isn't the only company aggressively challenging Deere. AGCO (NYSE: AGCO  ) has made aggressive expansion efforts in Africa, working with specialty agricultural lender Rabobank to try to help farmers on the continent buy more farming equipment. Moreover, both AGCO and CNH Global (NYSE: CNH  ) have made emerging markets like Latin America a high priority, reaping benefits from the more rapidly expanding economies among Latin American nations. Deere has targeted Latin America as well, but it hasn't been as aggressive with its international efforts as its peers. Deere's stock price has reflected its lack of initiative in expanding globally:

• [By Ben Levisohn]

  But don’t just buy any company, DeBlase says. Instead, focus on those that have EPS momentum, which has generated outperformance in 10 of the past 11 years, DeBlase says. As a result, investors should prefer Terex (TEX), her top pick, and Agco (AGCO), which she rates Outperform. John Deere (DE) and Parker Hannifin (PH) get tarred with Underweight ratings.