Heavy Equipment Stocks Building in Optimism

March 2, 2011

Construction equipment manufacturers have enjoyed sharp top-line rebounds over the past several quarters, and should see continued strong--albeit slowing--sales activity. Although commercial construction remains in the doldrums in key economies such as North American and Europe, infrastructure projects in developing nations and strong mining sales have led to robust improvements for companies such as Caterpillar, Terex, Joy Global and the nonfarm equipment segments of Deere and CNH Global. Improved U.S. residential--and eventually, nonresidential--construction activity should benefit these firms throughout 2011 and 2012.

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Source: SeekingAlpha.com