Top 10 Machinery Companies To Watch For 2014

"History must repeat itself because we pay such little attention to it the first time." (Blackie Sherrod, sportswriter born 1919 and still "kicking")

On April 8th, we learned that General Electric (GE) would be acquiring Lufkin Industries (LUFK). The deal is one of the three largest in the oilfield machinery and equipment industry during the past decade, and sets the stage for further acquisitions in this sector. Investors should start considering which companies might be next.

Bloomberg had been saying since September 2012 that LUFK was a takeover target when its stock had fallen to the lowest price in 3 years. "Lufkin will more than double GE's share of the artificial lift segment and give it about 15 percent market share," Julian Mitchell, an analyst at Credit Suisse in New York wrote in a note to clients.

Top 10 Machinery Companies To Watch For 2014: Rockwell Automation Inc.(ROK)

Rockwell Automation, Inc. provides industrial automation power, control, and information solutions. It operates in two segments, Architecture and Software, and Control Products and Solutions. The Architecture and Software segment offers control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch and continuous process, drives control, motion control, and machine safety control; and products comprising controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, and industrial computers. This segment also offers software products, such as configuration and visualization software used to operate and supervise control platforms, advanced process control software, and manufacturing execution software to enhance manufacturing productivity and meet regulatory requirements; and rotary and linear motion control products, and sensors and machine safety components . The Control Products and Solutions segment provides low and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, push buttons, signaling devices, termination and protection devices, relays and timers, and condition sensors; and packaged solutions, such as configured drives and motor control centers to automation and information solutions, as well as life-cycle support services. The company sells its products, solutions, and services primarily under the Rockwell Automation, Allen-Bradley, A-B, and Rockwell Software brand names to the food and beverage, transportation, oil and gas, metals, mining, home and personal care, pulp and paper, and life sciences markets through independent distributors and direct sales force in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Rockwell Automation, Inc. was founded in 1928 and is headquartered in Milwaukee , Wisconsin.

Top 10 Machinery Companies To Watch For 2014: 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 Matthew Scott]

  While trucking manufacturing Cummins (NYSE: CMI) is hardly a sexy stock, fleets of environmentally friendly trucks will be essential for many world economies to remain competitive as they slowly make their way out of the last recession. The price of Cummins’ stock has increased more than five and a half times in two years, jumping from $19.09 on March 9, 2009 to $109.62 at the end of the first quarter this year. As world economies begin to improve, transportation companies will begin replacing trucks so that they can move higher volumes of products more efficiently, and Cummins will benefit.

Best Safest Companies To Own In Right Now: AGCO Corporation (AGCO)

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company provides tractors, including compact tractors for small farms and specialty agricultural industries comprising dairies, landscaping, and residential areas; utility tractors, such as two-wheel and all-wheel drive versions for small and medium-sized farms, and specialty agricultural industries consist of dairy, livestock, orchards, and vineyards; and horsepower tractors for large farms and on cattle ranches for hay production. It also offers application equipment, which includes self-propelled, three and four-wheeled vehicles, and related equipment for use in the application of liquid and dry fertilizers, and crop protection chemicals; chemical sprayer equipment for planting crops; and related equipment that comprises vehicles for waste application, as well as provides combines. In addition, the company offers hay tools and forage equipment consisting rou nd and rectangular balers, self-propelled windrowers, disc mowers, spreaders and mower conditioners for harvesting and packaging vegetative feeds; and engines, such as diesel engines, gears, and generating sets. Further, it provides implements, including disc harrows for improving field performance; heavy tillage to break up soil and mix crop residue; and field cultivators for preparing smooth seed bed and destroy weeds, as well as offers tractor-pulled planters and loaders. Additionally, the company provides precision farming technologies to enhance productivity and profitability on the farm; and other advanced technology precision farming products to gather information, such as yield data, as well as offers wholesale financing and retail financing. It markets its products under the Challenger, Fendt, Massey Ferguson, and Valtra brand names through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia .

Top 10 Machinery Companies To Watch For 2014: Barnes Group Inc (B)

Barnes Group Inc. is an international aerospace and industrial components manufacturer and logistics services company serving a range of end markets and customers. The products and services provided by Barnes Group are critical components for applications, which provide transportation, communication, manufacturing and technology. The Company operates under two global business segments: Logistics and Manufacturing Services, and Precision Components. On December 30, 2011, the Company sold its Barnes Distribution Europe (BDE) business to Berner SE. In August 2012, the Company acquired Synventive Molding Solutions.

Logistics and Manufacturing Services

Logistics and Manufacturing Services provides logistics support and repair services. Value-added logistics support services include inventory management, technical sales, and supply chain solutions for maintenance, repair, operating, and production supplies and services. Repair services provided include the manufacturing of spare parts for the refurbishment and repair of engineered components and assemblies for commercial and military aviation. Logistics and Manufacturing Services has sales, distribution, and manufacturing operations in the United States, Brazil, Canada, China, France, Mexico, Singapore, Spain and the United Kingdom. Products and services are available in more than 30 countries.

The global operations are engaged in supplying, servicing and manufacturing of maintenance, repair and operating components. Activities include logistics support through vendor-managed inventory and technical sales for stocked replacement parts and other products, catalog offerings and custom solutions, and the manufacture and delivery of aerospace aftermarket spare parts, including the revenue sharing programs (RSPs) under, which the Company receives right to supply designated aftermarket parts over the life of the related aircraft engine program, and component repairs. In addition, the manufacturing and supplying of aerospace! aftermarket spare parts, including the RSPs, are dependent upon the reliable and timely delivery of components.

Precision Components

Precision Components is a global supplier of engineered components for critical applications focused on providing solutions for a industrial, transportation and aerospace customer base. It is equipped to produce every type of precision spring, from fine hairsprings for electronics and instruments to heavy-duty springs for machinery, as well as precision-machined and fabricated components and assemblies for OEM turbine engine, airframe and industrial gas turbine builders globally, and the military. It is also a manufacturer and supplier of precision mechanical products, including precision mechanical springs, compressor reed valves and nitrogen gas products. Precision Components also manufactures punched and fine-blanked components used in transportation and industrial applications, nitrogen gas springs and manifold systems used to control stamping presses, and retention rings, which position parts on a shaft or other axis.

Precision Components has a customer base with products purchased by durable goods manufacturers located in industries, including transportation, consumer products, farm equipment, telecommunications, medical devices, home appliances and electronics, and airframe and gas turbine engine manufacturers for commercial and military jets, business jets, and land-based industrial gas turbines. Long-standing customer relationships enable Precision Components to participate in the design phase of components and assemblies, through which customers receive the benefits of manufacturing research, testing and evaluation. Products are sold through Precision Components��direct sales force and a distribution channel. Precision Components has manufacturing, sales, assembly and distribution operations in the United States, Brazil, Canada, China, Germany, Korea, Mexico, Singapore, Sweden, Switzerland, Thailand and the United Kingdo! m.

Top 10 Machinery Companies To Watch For 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Sy_Harding]

  First Majestic Silver is one of the purest silver plays on the market. The company owns and operates three primary silver mines in Mexico: La Parrilla, San Martin, and La Encantada.

  Shares of AG have risen more than 60% for the year.

  First Majestic generates 85% of its revenue through the production and sale of silver. The rest of the company's revenue is generated through gold, lead, and zinc.

  First Majestic expects to increase total silver output from its operations to 7.5 million ounces of silver in 2011, and up to 16.0 million ounces by 2014.

Top 10 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 Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

• [By Sam Collins]

  Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

  Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

  Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

• [By Jim Cramer]

  this stock could be a monster in 2011, especially with the integration of Bucyrus (BUCY), which I think will turn out to be a fantastic acquisition. Estimates, currently showing EPS at about $6, I think are way, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation. Right now almost all of the growth is overseas. Still a fantastic mineral play and a terrific call on world growth.

• [By Dave Friedman]

  The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

Top 10 Machinery Companies To Watch For 2014: Terex Corporation(TEX)

Terex Corporation manufactures capital goods machinery products worldwide. Its Aerial Work Platforms segment offers portable material lifts, portable aerial work platforms, trailer-mounted articulating booms and light towers, self-propelled articulating and telescopic booms, scissor lifts, telehandlers, and bridge inspection and utility equipment under the Terex and Genie brands. The company?s Construction segment provides off-highway trucks and material handlers; loader backhoes, compaction equipment, mini and midi excavators, site dumpers, compact track loaders, skid steer loaders, wheel loaders, and tunneling equipment; and asphalt and concrete equipment, and landfill compactors principally under the Terex name. Its Cranes segment offers mobile telescopic and tower cranes, lattice boom crawler and truck cranes, and truck-mounted cranes; and straddle and sprinter carriers, gantry cranes, ship-to-shore cranes, reach stackers, empty and full container handlers, and genera l cargo lift trucks under the Terex brand. The company?s Material Handling and Port Solutions segment provides standard and process cranes, rope and chain hoists, electric motors, and light crane systems; and crane components and port equipment, such as mobile harbor and automated stacking cranes, and automated guided vehicles, as well as terminal automation technology, including software under the Demag and Gottwald names. Its Materials Processing segment offers crushers, washing systems, screens, apron feeders, chippers, and related components and replacement parts under the Terex and Powerscreen brands. The company provides financing solutions to assist customers in the rental, leasing, and acquisition of its products. It serves construction, infrastructure, quarrying, mining, manufacturing, shipping, transportation, refining, energy, and utility industries through dealers, rental companies, direct sales, and major accounts. The company was founded in 1925 and is based i n Westport, Connecticut.