The industrial sector received a major setback amid the COVID-19 pandemic. But it seems to be staging a comeback with the economy’s gradual reopening. Given this backdrop, we think it could be wise to bet on Hitachi (OTC:), Amada (AMDLY), and Belden (NYSE:). They look undervalued at their current price levels. So, let’s have a closer look at these names.The industrial sector received a major setback last year as industrial activities practically came to a halt due to the COVID-19 pandemic. However, with the economy reopening this year thanks to an aggressive vaccination drive, industrial activities are increasing. Total industrial production increased 1.4% in March. The annualized growth in industrial production was 2.5% in the first quarter. And President Biden’s proposed $2 trillion infrastructure plan is expected to provide a further boost to the industrial sector.
Investors’ interest in the industrial stocks is evident from the Industrial Select Sector SPDR Fund’s (XLI) 24.3% gains over the past six months versus the SPDR S&P 500 Trust ETF’s (SPY) 19.6% returns.
Given this backdrop, we think it could be wise to bet on industrial stocks that possess strong financials but are still undervalued. And Hitachi Ltd . (HTHIY), Amada Co., Ltd. (AMDLY) and Belden Inc . (BDC) are solid picks on that front.
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