Regal Rexnord (RRX)

Industrial activity is improving beyond AI. Short-cycle industrials are starting to turn. RRX is a diversified industrial focused on automation, plugged into data centres (cooling) and robots (actuators), both growth areas. RRX grew by buying companies. The PE is attractive and are lowering debt.

(Analysts’ price target is $260.00)

(A Top Pick Nov 18/21, Down 28%) Major acquisition costing 5B cash caused stock to drop. It has only a 9B market cap. Huge amount of debt, and the market's nervous to begin with. Historically good acquirers. It will come back. Cheap stock.

Acquired company that gives them technology and motion systems. Pause in share price is due to market, not company. Still likes. Post-turbulence in the economy, a solid hold.

Infrastructure play. Exciting company, growing smartly. Mechanical and electrical motors and transmissions. Basic stuff, but there's opportunity with a trillion dollars of infrastructure spend coming. Strong balance sheet, only 23% debt to capital. Growing at 3-4x GDP, at 17x earnings. Yield is 0.77%. (Analysts’ price target is $188.81)