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BMO Capital Markets is highlighting the advantages of growth-at-a-reasonable-price (GARP) as a smart investment strategy, particularly within the Industrials sector.
In a recent investor note, the financial institution emphasized that stocks combining solid earnings growth with attractive valuations have historically outperformed both the broader market and their sector peers—while also delivering lower volatility. Backed by years of data, BMO believes GARP investing offers a compelling balance of risk and reward, making it a relevant approach for investors seeking quality opportunities in today’s market.
Moreover, BMO Capital Markets went on to spotlight 16 industrial stocks that fit with GARP characteristics. Seeking Alpha further ranked the 16 names by ratings generated by its analysts. See the grouping of names below:
No. 16: Caterpillar (NYSE:CAT), SA analyst rating 2.71.
No. 15: Builders FirstSource, Inc. (NYSE:BLDR), SA analyst rating 3.00.
No. 14: Huntington Ingalls Industries (NYSE:HII), SA analyst rating 3.00.
No. 13: Masco Corporation (NYSE:MAS), SA analyst rating 3.00.
No. 12: PACCAR Inc (NASDAQ:PCAR), SA analyst rating 3.00.
No. 11: Stanley Black & Decker (NYSE:SWK), SA analyst rating 3.20.
No. 10: CSX Corporation (NASDAQ:CSX), SA analyst rating 3.33.
No. 9: Northrop Grumman Corp. (NYSE:NOC), SA analyst rating 3.42.
No. 8: GNRC Generac Holdings Inc. (NYSE:GNRC), SA analyst rating 3.50.
No. 7: United Parcel Service (NYSE:UPS), SA analyst rating 3.63.
No. 6: Norfolk Southern Corporation (NYSE:NSC), SA analyst rating 3.66.
No. 5: Delta Air Lines, Inc. (NYSE:DAL), SA analyst rating 3.75.
No. 4: General Dynamics Corporation (NYSE:GD), SA analyst rating 3.83.
No. 3: Cummins Inc. (NYSE:CMI), SA analyst rating 4.00.
No. 2: Textron Inc. (NYSE:TXT), SA analyst rating 4.00.
No. 1: United Airlines Holdings (NASDAQ:UAL), SA analyst rating 4.00.
Additionally, while not mentioned by BMO Capital Markets see a grouping of Industrial ETFs as well that investors may find as an interest: (NYSEARCA:XLI), (NYSEARCA:VIS), (NYSEARCA:FXR), (BATS:IYJ), (NYSEARCA:FIDU), and (NYSEARCA:RSPN).
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