One of the main reasons for the American stock market to report lot of gainers in the recent past is the fast pace of economic growth of the country. The GDP of the US has been looking up in the last few years and many industries have reported an overall rise and improvement in their earnings. With employment at an all-time best rate, most of these industries have lots of scope for expanding in the future. As the manufacturing sector is beginning to look up, the top 2 industrial stocks that are expected to rise to great heights during 2015 are listed below:
Consistent record of revenues
One of the main reasons as to why Proto Labs (PRLB, Financial) is expected to be a top industrial stock for 2015 is its track record of revenues. For the past 5 years on the trot, this technologically sound manufacturer has been reporting a healthy increase in revenues as seen from the graph below. This is enough proof to show that Proto Labs is destined to be a clear winner for this year.
Consistent increases in revenues were possible only because the company followed a successful business model. It is in the business of providing technological assistance and automation processes for CNC machining and injection moulding industries to increase their productivity. The business model of the company involves providing a diverse range of manufacturing services to clients, keeping clients extremely satisfied through international class customer service and adapting to all kinds of technological changes by implementing it successfully. With lots of product developers waiting on the radars to make use of the quick turnaround generating services of Proto Labs, the future indeed looks bright for the company.
Making the right noises
If you have to pick one industrial stock from the auto market that will offer great results for 2015 and the coming years, it has to be General Motors (GM, Financial). The once-beleaguered automobile giant is now the darling of the automobile industry as it has been making the right noises in the right places. With a heavy history of bankruptcy behind it, General Motors has been taking all kinds of efforts to make amends to resurrect the negative image it had among the people. A whole new management team took over the reins of the company and it must be agreed that this team is doing a fantastic job in getting General Motors back on track.
In spite of the recall scare recently, General Motors posted 9.5% increase in North America alone during Q3 2014 when compared with revenues of Q3 2014. This was better than the profit margins posted by GM’s arch rival, Ford Motors (F, Financial). A bevy of excellent models like Chevy Impala, Ca dillac CTS and Chevy Colorado were launched by General Motors recently. These models have been appreciated in almost all the international markets and have contributed to the success of General Motors in a large way in the recent past. The CEO of GM, Mary Barra’s statement that 2015 and 2016 would be positive years for the company, should spell good news for investors. The other good news is that General Motors’ performance in the Asian markets, especially China has been strong and stable for the last year, in spite of having another big player like Volkswagen (VLKAY, Financial) in the market. With a host of Sports Utility Vehicles (SUVs) and luxury cars to be introduced in the coming years in the global markets, General Motors has indeed arrived strongly in the auto market. In addition to this, it is helped by a highly efficient and result-oriented management at the helm of its affairs, which makes it a great stock to invest in right now. The stock movement trend of GM for the last few months is seen below:
Conclusion
Wall Street analysts are predicting a great year for the industrial sector not only in the US, but also for other international economies. With a highly supportive external environment, able management, strategic business model and customer-centric approach, these two companies are all set to witness historic growths in the next couple of years. Hence, you can invest in them right now, if you want to add more value to your kitty.
