StockStory Flags Growth and Profitability Concerns at Three Industrials

StockStory named Oshkosh, Hillman and The Toro Company as three industrial stocks it believes investors should avoid, citing weak growth, margins or returns on capital. It also noted the industrials industry fell 6.4% over the previous six months, while the S&P 500 returned 13.5%.

Oshkosh's backlog declined by an average 3.3% over two years, the publisher said. It also cited a 16.3% gross margin and an 11.9% annual drop in earnings per share over that period. StockStory listed the shares at $126.64 and a forward price-to-earnings ratio of 9.8.

Hillman recorded annual revenue growth of 2.1% over five years, according to StockStory. The publisher also pointed to the company's operating-margin profitability and below-average returns on capital. It listed Hillman at $7.11 a share and a forward P/E of 10.7.

For Toro, StockStory cited annual revenue growth of 2.9% over two years and declining returns on capital. Wall Street estimates cited in the article indicated 3% growth over the next 12 months. The article put Toro at $96.65 a share and 19.4 times forward earnings.

StockStory argued that cyclical industrial companies are difficult to time because demand moves with the broader economy. Its concerns across the three companies centered on recent growth, profitability and order trends.