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Bargain Buy In Industrials: Dover

Tuesday, 5 Jun 2012 | 7:08 PM ET

Investors have been dumping industrials broadly, with the sector down 8% over the last month.

The negative sentiment surrounding global growth has largely been behind the decline.

But not all stocks are created equal. Amid the slide, have any stocks in the sector become oversold? Are there any bargain buys?

Bargain Buys in Industrials
According to the WSJ, the Nasdaq plans to begin compensating investors for Facebook's botched IPO; and breaking down the plays in the industrial sector, even though its down 8% over the past month, with the Fast Money traders and Jeff Sprague, Vertical Research Partners.

Jeff Sprague, founder, Vertical Research Partners tells us he likes Dover and thinks investors have punished the company, excessively.

He sees upside.

“They have a clear product cycle and a weakened competitor in Hussman,” he says. “Also only 16% of sales come from Europe, that puts them on the low end as compared to other multinationals.”

All of the aforementioned he sees as positive catalysts.

Trader Steve Grasso suggests trading the space a little differently.

“If we see a positive headline out of Europe, I’d own the entire sector,” he says, “but only for a bounce. Then I’d sell it. Although I think we’re due for an oversold bounce, I also think the market makes a round trip.”

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Posted by CNBC's Lee Brodie






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Trader disclosure: On June 5, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is short JUNE MINI S&P FUTURES; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA

For Brian Kelly
Nothing to disclose

  Price   Change %Change
DOV
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