Best Machinery Companies To Watch For 2014

Investors waiting for Caterpillar (CAT) to turn into a butterfly will have to wait a while longer.

The maker of heavy machinery said profits fell 44% during the third quarter, while earnings-per share dropped to $1.45, well below forecasts for $1.68. Caterpillar also slashed its guidance for full-year earnings to $5.50, down from $6.50.

It’s fair to say investors were expecting more. In the days ahead of the report, share of Caterpillar had traded up to the top-end of the range they’d been trading in for the last six months. Instead, Caterpillar’s stock has fallen 6.2% to $83.69 at 12:43 p.m. today, bringing it back towards the low end of the range.

Caterpillar also had the misfortune to report on a day when investors are concerned that China could take steps tighten credit. And with Caterpillar’s exposure to emerging markets, that’s likely hitting shares as well.

Top 10 Rising Stocks To Watch For 2015: Cummins Inc.(CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Advisors' Opinion:

• [By Ben Levisohn]

  Caterpillar’s shares have gained 6.6% in 2014, double its 2013 gain of 3.3%, and besting the 7.7% drop in Deere (DE), the 0.4% rise in Terex (TEX), the 0.3% dip in Cummins (CMI) and the 4.5% decline in Joy Global (JOY).

• [By Jonathan Yates]

  That projection is a result of more motor traffic expected in Asia, in the decades ahead. Three publicly-traded companies that should benefit from that trend are Toyota Motor Corp (NYSE: TM), Cummins Inc (NYSE: CMI), and Goodyear Tire & Rubber Co. (NYSE: GT).

Best Machinery Companies To Watch For 2014: Robogroup TEK Ltd (ROBO)

RoboGroup T.E.K Ltd. is a global, diversified enterprise with proprietary technologies on the forefront of robotics, motion control and technology education. RoboGroup's activities are organized in two related business operations: Yaskawa Eshed Technology (YET) and Intelitek.

YET, a joint venture with Japan's Yaskawa Electric Corp., which provides industrial motion controls, particularly those based on its algorithms. Intelitek, which develops, manufactures and markets training products and e-learning systems. Intelitek�� broad educational product line covers subjects such as computer-aided design, computer-aided manufacturing, configurable network computing, robotics, machine vision, hydraulics, pneumatics, sensors, process control and data acquisition. Intelitek also designs and produces integrated and customized manufacturing workcells, ranging from small-scale flexible manufacturing systems to complete computer integrated manufacturing systems.

Advisors' Opinion:

• [By Matt Krantz]

  Another way for investors to play the robotics industry is a new exchange traded fund, Robo-Stox Robotics & Automation (symbol: ROBO). The ETF owns a basket of robotics and automation stocks. One major caution, though, is that not all the stocks in the ETF are those investors traditionally think of when it comes to robotics. The largest weighting is in 3D Systems, a maker of a 3D printer, and Faro Technologies, which makes measurement devices. But none of the stocks in the ETF account for more than 4% of the total value, so the diversification helps give investors a way to play the speculative industry.

• [By John Udovich]

  Spruce Point Capital Management, LLC has released a research report about small cap robotics stock iRobot Corporation (NASDAQ: IRBT) entitled ��bout to Short Circuit,��meaning investors should take a closer look at the report, the�stock�and the performance of�robotics peer Adept Technology Inc (NASDAQ: ADEP) and�the Robo-Stox Global Robotics & Automation ETF (NASDAQ: ROBO). I should mention that we used to have both Adept Technology and iRobot Corporation in our SmallCap Network Elite Opportunity (SCN EO) portfolio�because we see the�robotics subsector improving as companies aim to reduce overhead and improve efficiencies through machine to machine (M2M) automation.

Best Machinery Companies To Watch For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Matt Thalman]

  Now that we've gotten through five months of 2013, it's a good time to review which stocks have performed well for the year, which haven't, and whether you should own any of them. With the Dow Jones Industrial Average (DJINDICES: ^DJI  ) having increased by 15.35% year to date, there have clearly been more big winners than big losers this year. With Caterpillar (NYSE: CAT  ) being the biggest Dow loser and down only 4.25% in 2013, and Hewlett-Packard (NYSE: HPQ  ) being the biggest winner, up 71.37% in 2013, the difference is dramatic. But, let's look at why these stocks have performed the way they have, and whether you should own either of them. My conclusion may shock you!

• [By Paul Ausick]

  Today�� big gainer among the Dow stocks was Caterpillar Inc. (NYSE: CAT). Competitor Joy Global Inc. (NYSE: JOY) reported rotten results this morning, largely due to anemic sales to coal miners. Caterpillar doesn�� do a lot of business with coal companies, so that�� a plus the firm. Cat�� shares traded up 1.4% at $97.71 in a 52-week range of $84.79 to $98.24 just ahead of the closing bell. Volume is on track to be about 25% below the daily average of around 6 million shares traded.

• [By Matt Thalman]

  Caterpillar (NYSE: CAT  ) also had a bad week, as shares fell by 2.72%. This is the ninth straight week shares of Caterpillar closed lower than were they began. In that time, the stock price has been cut lower by 14.89%. This week's big decline came on Tuesday, after the Department of Commerce released its factory orders and showed that machinery and other large equipment declined by 3.2% in February. �

• [By Jon C. Ogg]

  Caterpillar Inc. (NYSE: CAT) was another winner, on hopes of larger domestic orders rather than just on hopes of international orders. This was ahead of the dividend payment, and was a day after the company pressed Congress to develop legislation to enhance infrastructure. Caterpillar shares were up 2% at $92.41 right before the closing bell.

Best Machinery Companies To Watch For 2014: Energy Recovery Inc (ERII)

Energy Recovery, Inc. incorporated in April 1992, is engaged in developing, manufacturing and selling of energy recovery devices and circulation pumps primarily for uses in seawater desalination plants that use reverse osmosis technology. The Company's products are sold under the trademarks AquaBold, AquaSpire, ERITM, PXT, Pressure Exchanger, PX Pressure Exchanger, PEIT, Pump Engineering and Quadribaric. The Company develops and sells two main lines of energy recovery devices: PX pressures Exchanger devices and turbochargers. Each line includes a range of models and sizes to address the breadth of required process flow rates, plant designs and sizes. The company has two wholly owned subsidiaries: Energy Recovery Iberia, S.L. and ERI Energy Recovery Ireland Ltd. During the year ended December 2011, the Company merged three subsidiaries including, Osmotic Power, Inc.; Energy Recovery, Inc. International and Pump Engineering, Inc. into the parent company, Energy Recovery, Inc.

Energy recovery devices

The Company's PX offering includes: the PX-300 and PX-Q300; the 65 series (the PX-260, PX-220 and PX-180); the 4S series (PX-140S, PX-90S, PX-70S, PX-45S and PX-30S) and brackish PX devices (for the desalination of water with a lower concentration of salt than seawater). The Company's turbocharger offering includes: the HTCAT series (HTCAT-1800, HTCAT-2400, HTCAT-3600, HTCAT-4800, HTCAT-7200 and HTCAT-9600); the HALO line (HALO-50, HALO-75, HALO-100, HALO-150, HALO-225, HALO-300, HALO-450, HALO-500, HALO-600, HALO-900 and HALO-1200) and the LPT series for brackish water desalination applications (LPT-63, LPT-125, LPT-250, LPT-500, LPT-1000, LPT-2000 and LPT-3200).

High-pressure and Circulation pumps.

The Company manufactures and sells high-pressure feed, circulation and booster pumps for uses with its energy recovery devices in reverse osmosis desalination plants. The Company's line of pumps includes the AquaBold series (AquaBold 2x3x5, AquaBold 3x4x7 and ! AquaBold 4x6x9); the AquaSpire series (AquaSpire-300, AquaSpire-450, AquaSpire-600, AquaSpire-900, AquaSpire-1200, AquaSpire-1800, AaquaSpire-2400, AquaSpire-3600, AquaSpire-4800, AquaSpire-7200 and AquaSpire-9600) and a line of small circulation pumps.

Technical support and Replacement parts

The Company provides engineering and technical support to customers during product installation and plants commissioning. The Company also offers replacement parts and services for its PX devices and turbochargers. The Company's PX devices and turbochargers are also used to retrofit or replace older energy recovery devices in existing desalination plants.

The Company Competes with Flowserve Corporation (Flowserve) based in Irving, Texas and Fluid Equipment Development Company, Clyde Union Ltd., Duchting Pumpen Maschinenfabrik GmbH & Co KG, KSB Aktiengesellschaft, Torishima Pump Mfg. Co., Ltd. and Sulzer Pumps, Ltd.

Advisors' Opinion:

• [By Ant贸nio Costa]

  Energy Recovery, Inc. (NASDAQ: ERII) broke out of a small consolidation area with heavy volume and will likely have the attention of the swing-traders in the next days.

Best Machinery Companies To Watch For 2014: Fidia SpA (FDA)

Fidia SpA is an Italy-based company primarily engaged in the production of numerical controls and machine tools. The Company�� activities are divided into three main business lines. In the High-speed Milling Systems, it is involved in the production and sale of milling heads kits and cutting-edge equipment. Through the Numerical Controls, Dives and Software sector, it is active in the manufacture of numerical controls for milling systems, as well as in the development and distribution of computer-aided design (CAD) and computer-aided manufacturing (CAM) software. The After-sales Service sector includes the provision of technical services, sale of spare parts and scheduled maintenance contracts. The Company operates in Germany, France, Brazil, China, Poland and India, among others. Advisors' Opinion:

• [By Rahul Chattaraj]

  Every year more and more people are becoming health conscious and healthcare is one such industry which I feel can never be in slump. It�� is just brilliant of Apple to embed a hardware in a smartphone which will be able to cash on this opportunity. The iPhone 5S already has the hardware components to support the Healthbook app and once the iOS 8 is released for the next iPhone model and upgrades are available for the iPhone 5S, Apple will be poised to see huge surge in the demand for its devices. Certain incidents such as the top Apple executives meeting the US Food and Drug Administration (FDA), and former Mashimo Corp. Chief Medical Officer Michael O'Reilly joining Apple are clearly hinting that the company�� mobile health dreams will very soon turn into reality.

• [By Patricio Kehoe]

  Despite recent anti-tobacco laws passed by the European Union and the Food and Drug Administration (FDA) in the U.S, the company�� pricing power has helped maintain its margins. In 2012, for example, Phillip Morris hiked prices on its products in Russia, Germany, Belgium, Canada, France, Greece and Spain, among others. Although the necessary measure caused substantial volume declines in these countries, consumers rapidly became accustomed to the increased prices, and returned to their habitual product consumption. Given the success of this strategy, the firm is likely to rely on it in Japan for 2014, where taxes are expected to increase yet again by 8%, after the 40% spike in October 2010.

Best Machinery Companies To Watch For 2014: Mueller Water Products Inc (MWA)

Mueller Water Products, Inc., incorporated on September 22, 2005, is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water. The Company�� product portfolio includes engineered valves, fire hydrants, pipe fittings, water meters, leak detection and pipe condition assessment which are used by municipalities, as well as the residential and non-residential construction industries. The Company operates in two segments: Mueller Co. and Anvil. Mueller Co. The Company�� valve or fire hydrant products are specified for use in the 100 metropolitan areas in the United States.

Mueller Co.

Mueller Co. manufactures valves for water and gas systems, including iron gate, butterfly, tapping, check, plug and ball valves, as well as dry-barrel and wet-barrel fire hydrants and a of pipe repair products, such as clamps and couplings used to repair leaks. The Company offers residential and commercial metering products and systems and leak detection and pipe condition assessment products and services. Mueller Co. products are sold through waterworks distributors.

The Company�� fire hydrants consist of an upper barrel and nozzle section and a lower barrel and valve section that connects to a water main. In dry-barrel hydrants, the valve connecting the barrel of the hydrant to the water main is located below ground at or below the frost line, which keeps the hydrant upper barrel dry. It sells dry-barrel fire hydrants with the Mueller and U.S. Pipe Valve and Hydrant brand names in the United States and the Mueller and Canada Valve brand names in Canada. The Company also makes wet-barrel hydrants, where the valves are located in the hydrant nozzles and the barrel contains water at all times. It also makes wet-barrel hydrants, where the valves are located in the hydrant nozzles and the barrel contains water at all times.

Mueller Co. manufactures a variety of intelligent water technology products under the Mue! ller Systems and Hersey Meters brand names that are designed to help water providers accurately measure water usage. These products include water meters, advanced metering infrastructure systems and automated meter reading products, have the capability to measure water usage ranging from small residential flows to large commercial and industrial applications.

Mueller Co. offers leak detection and pipe condition assessment products and services under the Echologics brand name. Other products include pipe repair products, such as clamps and couplings used to repair leaks and municipal castings, such as manhole covers and street drain grates. It sells these products under the Mueller and Jones brand names.

The Company competes with McWane, Inc., American Cast Iron Pipe Company, The Ford Meter Box Company, Inc., A.Y. McDonald Mfg, Sensus, Neptune Technology Group, Inc., Badger Meter, Inc., Aclara LLC and Itron, Inc.

Anvil

Anvil manufactures and sources a range of products, includes fittings, couplings, hangers, valves and related products for use in many non-residential constructions for HVAC, fire protection, energy and oil and gas applications. Anvil's products are sold through distributors who then sell the products to a variety of end users. These distributors are serviced primarily through Anvil's distribution centers.

Fittings and Couplings manufactures threaded and grooved pipe fittings and couplings. Pipe fittings and couplings join two pieces of pipe together. The five categories of pipe fittings and couplings are cast iron fittings, malleable iron fittings and unions, grooved fittings, couplings and valves, threaded steel pipe coupling and nipples. Hangers, manufacture an array of pipe hangers and supports. Standard pipe hangers and supports are used in fire protection sprinkler systems and HVAC applications where the objective is to provide rigid support from the building structure.

The Company competes with Ward Man! ufacturin! g L.L.C., malleable iron fittings, Victaulic Company, Tyco International Ltd., ERICO International Corporation, Cooper Industries plc and Carpenter & Paterson, Inc.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of Mueller Water Products (NYSE: MWA  ) jumped as much as 17% today after the company released earnings.

  So what: Fiscal-second-quarter revenue jumped 12.6% to $283.1 million and net income was $6.2 million, or $0.05 per share. Analysts only expected revenue to be $270.8 million and earnings of $0.02 per share so this was well ahead of estimates. �