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11 machinery stocks to watch

Ready to invest in the heavy equipment industry? Learn how to invest in machinery stocks in just a few steps.

The best machinery stocks depend on your portfolio and investment goals—while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.

11 popular machinery stocks to watch

We round up a selection of stocks in or related to the heavy equipment industry, weighting the list more heavily towards popular mid- and large-cap stocks.

  1. Caterpillar (CAT)
  2. Dover Corporation (DOV)
  3. Flowserve Corporation (FLS)
  4. Cummins (CMI)
  5. Illinois Tool Works (ITW)
  6. Ingersoll Rand (IR)
  7. Graco (GGG)
  8. Xylem (XYL)
  9. ITT (ITT)
  10. Deere-and-Company (DE)
  11. Kulicke and Soffa Industries (KLIC)

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The machinery stocks industry is affected by a range of complex factors such as trade policies, regulations, and fluctuating supply and demand. So when considering machinery stocks to buy, it's important that you have access to vital information about a company's financial health, leadership team, and market positioning.

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How to invest in machinery stocks

  1. Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best stock trading apps in Canada.
  2. Sign up for an account. Provide your personal information and sign up.
  3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol like CAT or DOV.
  5. Place your order. Buy the stock. It's that simple.

Learn more about popular machinery stocks

We round up a selection of stocks in or related to the heavy equipment industry, weighting the list more heavily towards popular mid- and large-cap US stocks.

1. Caterpillar (CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.

  • Previous close price: $359.88
  • Market capitalization: $185,718,292,480
  • 1 year performance: 62.35%
  • P/E ratio: 18.4841
Buy CAT stock on Interactive Brokers

2. Dover Corporation (DOV)

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions.

  • Previous close price: $171.16
  • Market capitalization: $23,916,818,432
  • 1 year performance: 16.04%
  • P/E ratio: 23.1513
Buy DOV stock on Interactive Brokers

3. Flowserve Corporation (FLS)

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets.

  • Previous close price: $46.38
  • Market capitalization: $6,255,062,528
  • 1 year performance: 41.62%
  • P/E ratio: 33.4366
Buy FLS stock on Interactive Brokers

4. Cummins (CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera.

  • Previous close price: $294.58
  • Market capitalization: $41,342,246,912
  • 1 year performance: 28.16%
  • P/E ratio: 58.8132
Buy CMI stock on Interactive Brokers

5. Illinois Tool Works (ITW)

Illinois Tool Works Inc. manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.

  • Previous close price: $251.21
  • Market capitalization: $77,461,594,112
  • 1 year performance: 8.96%
  • P/E ratio: 26.5938
Buy ITW stock on Interactive Brokers

6. Ingersoll Rand (IR)

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies.

  • Previous close price: $90.88
  • Market capitalization: $37,588,131,840
  • 1 year performance: 63.45%
  • P/E ratio: 49.0368
Buy IR stock on Interactive Brokers

7. Graco (GGG)

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors.

  • Previous close price: $89.07
  • Market capitalization: $15,381,409,792
  • 1 year performance: 26.75%
  • P/E ratio: 31.0476
Buy GGG stock on Interactive Brokers

8. Xylem (XYL)

Xylem Inc. , together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services.

  • Previous close price: $128.00
  • Market capitalization: $31,137,556,480
  • 1 year performance: 24.60%
  • P/E ratio: 46.1613
Buy XYL stock on Interactive Brokers

9. ITT (ITT)

ITT Inc. , together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets in the United States and internationally. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains.

  • Previous close price: $127.57
  • Market capitalization: $10,745,248,768
  • 1 year performance: 55.76%
  • P/E ratio: 26.334
Buy ITT stock on Interactive Brokers

10. Deere-and-Company (DE)

Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides large and medium tractors, combines, cotton pickers and strippers, sugarcane harvesters and loaders, harvesting front-end equipment, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.

  • Previous close price: $393.01
  • Market capitalization: $114,675,154,944
  • 1 year performance: 4.16%
  • P/E ratio: 12.0038
Buy DE stock on Interactive Brokers

11. Kulicke and Soffa Industries (KLIC)

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS).

  • Previous close price: $47.47
  • Market capitalization: $2,744,938,496
  • 1 year performance: -5.81%
  • P/E ratio: 54.1333
Buy KLIC stock on Interactive Brokers

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Note: The dollar amounts in the table below are in Canadian dollars.

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Bottom line

While it's possible to turn a profit investing in machinery stocks, keep in mind that—like any investment—machinery stocks are not immune to risk. These stocks are subject to fluctuating conditions both in the market and in the heavy equipment industry, so carefully vet your picks before you invest. If you're new to investing or if it's been a while since you've taken a critical look at your investment accounts, compare brokers to make sure you're getting the best trading features for your needs.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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