The Hot List: 3 Industrial Stocks for Short Term Traders
While most industrial stocks continue to trade in bear market territory as the world continues to brace for a next-shoe-to-drop slowdown in the Chinese economy, there are a handful of stocks from the industrial sector that are still trading above their 200-day moving averages despite strong pullbacks in Wednesday’s session.
Traders were taking profits in W.W. Grainger Inc. (GWW), which rallied to 52-week highs on Tuesday. Sellers on Wednesday were able to take the stocks lower by well over 4%, as shares of GWW finished at their lowest level in a week. Another day or two of similar selling will likely find GWW trading in technically oversold territory.
Selling in the stock was strong enough that GWW earned a major intraday ratings upgrade from a “consider avoiding” 3 out of 10 to a more neutral rating of 6.
Profit-taking was also the order of the day in Roper Industries (ROP). After rallying to its highest levels since July, shares of ROP pulled back by more than 3% ahead of trading on Thursday. ROP rallied back above its 200-day moving average in late October after spending almost three months below that level.
Much like W.W. Grainger, shares of Fastenal Company (FAST) are also experiencing selling brought on by a recent rally to 52-week highs on Tuesday. Down just over 3%, shares of FAST are in neutral territory, and would require at least an additional day of selling before reaching levels at which buyers have historically become attracted to the stock in the short term.
Both ROP and FAST are somewhat less highly rated than Grainger heading into Thursday’s session.
All of the stocks in today’s report were available from research and data available through PowerRatings. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com