Industrials certainly haven’t been suffering going into the new year, with the sector up about 20% in the last two months of 2020 alone as investors reposition for a cyclical recovery buoyed in part by COVID-19 vaccinations. MSC Industrial (MSM) has gone along for the ride, slightly outperforming the sector since my last update, as stocks sensitive to industrial production (including names like Kennametal (KMT), Parker-Hannifin (PH), and Sandvik (OTCPK:SDVKY)) have also been performing quite well.
While skeptical about
management’s ability to deliver on its latest self-improvement program
(largely a collection of reheats and repackaged goals from past
unsuccessful efforts), I did see some relative value in the stock in
that last write-up. With the outperformance since then, I’m not as
excited about the relative value opportunity, and while I do think there
could be more room for cyclicals to run on recovery hopes, management
execution will become an increasingly significant part of the story as
2021 develops.
Click here for more:
Business Activity Is Slowly Improving, But MSC Industrial Has Yet To See The Big Turn In Demand
No comments:
Post a Comment