Industrial stocks showing promise

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There are 13 stocks in the Industrials sector of the ASX 100 – ignoring the international drilling company Boart Longyear (BLY) that will exit the top 100 on December 21 after a big price fall.

The drivers for the Industrials sector are many and varied. There are a number of mining services companies listed on the ASX, but only Monadelphous makes the top 100 list and my list of 13 stocks. If you've been following my earlier articles in this series, you may recall that in my review of the Energy sector I chose to reallocate Worley Parsons from Energy to Industrials, but its rating of 2.6 precludes my selection of it at this time.

Only six of the 13 stocks in the table below have a recommendation (less than or equal to 2.5 – remember, the lower, the better) sufficient to warrant my consideration for including them in a high conviction portfolio. The largest, Brambles, which runs an international distribution network of pallets and plastic containers, fails to make my list. So the three biggest stocks by market capitalisation with a sufficiently good rating are: Transurban (TCL), Aurizon (AZJ) and Asciano (AIO).

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