Trading Nation

Industrial stocks: Winners and losers in a busy earnings week

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Ahead of industrial earnings wave, traders pick the ones to watch

It's a busy earnings week for the industrial sector.

Among the biggest names, 3M and Rockwell reported Tuesday morning, Boeing and General Electric are set for Wednesday, UPS and Stanley Black & Decker on Thursday and Caterpillar rounds out the week Friday.

Michael Binger, president of Gradient Investments, said he has a stake in Lockheed Martin, which reported better-than-expected earnings last week. As for upcoming earnings, he has his eye on another defense-sector stock — Raytheon.

"We think it's great value," Binger told CNBC's "Trading Nation" on Monday.

Raytheon reported earnings per share of 40 cents in adjusted profit for its second quarter, beating estimates of 12 cents. Revenue climbed 26% to $14.28 billion. 

In the manufacturing and construction slice of the sector, Binger is looking ahead to Caterpillar.

"We think it's an interesting name. They have exposure to the global infrastructure recovery, and we think their earnings is going to bottom in the first half of 2021 and improve from there," said Binger.

Ari Wald, head of technical analysis at Oppenheimer, sees buys in Cummins, Rockwell Automation and Roper Technologies.

"It's worthwhile to highlight Rockwell Automation. It's also outperform-rated at our firm at Oppenheimer Why we like it based on the chart is that the stock is breaking through three-year resistance dating back to the year 2017 so as much as it's rising more recently, we still see runway for the stock after three years of little progress for the price," Wald said during the same "Trading Nation" segment.

Rockwell reported earnings before the bell Tuesday. The company earned an adjusted $1.27 a share, beating estimates by a dime. Revenue declined nearly 17% to $1.39 billion. 

Disclosure: Gradient Investments holds Raytheon.

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