We’re always kicking ideas around the Service Coach office and, hey, for once I think we actually had a good one…
I picked 9 of the top HVAC, plumbing and electrical stocks on the New York Stock Exchange and bought exactly one share of each. Over the next few months, I’ll be posting weekly reports here to track how my stocks are faring and offer an overall ‘big picture’ take on how our industry is doing down on Wall Street.
Here are my picks:
United Technologies (UTX) – $100.10/share: Although United Technologies has a broad catalog of products and services ranging from the global aerospace industry to the building systems industry, the main reason this was a buy for me is they are Carrier’s parent company. Many of our clients trust Carrier heating and air conditioning systems to bring energy efficient, quiet and consistent comfort to millions of homes.
Lennox (LII) – $68.65/share: From heating to cooling, Lennox is one of the most well known and respected HVAC companies around. With a line-up of over 60 cutting-edge products and a network of 6,000 vendors, I feel Lennox is one of the smarter buys I made.
Emerson (EMR) – $60.37/share: As a big fan of RIDGID professional tools, especially the state-of-the-art RIDGIDConnect online report generating system, I wanted to invest in RIDGID’s parent company, Emerson. Emerson also has thriving process management, industrial automation, network power and climate technologies divisions. My kind of company.
Eaton (ETN) – $63.32/share: Eaton offers a complete line of standby and portable generators along with a full range of electrical equipment. For a company with a reputation like Eaton, I felt like $63.99 a share was a steal—one of the easiest decisions I made all day.
Generac (GNRC) – $39.59/share: Sometimes it’s all about loyalty. I deal with Generac vendors and products almost every day. They put out a quality generator and I consider it a privilege to now be a shareholder.
Honeywell (HON) – $79.57/share: Honeywell’s focus on global trends like energy efficiency and clean energy generation coupled with their excellence in heating made this a must buy for me with winter just around the corner.
A.O. Smith (AOS) – $42.05/share: I love innovative companies, so buying into A.O. Smith was a no-brainer. These guys are at the forefront of water technology with an eye on cutting-edge product development, global expansion and strategic acquisitions and partnerships. Like I said… no-brainer.
Watsco (WSO) – $89.80/share: Watsco is one the largest distributors of heating, air conditioning, and refrigeration products in the country. Watsco entered the distribution segment of the industry in 1989 and has become the industry leader with sales of $2.0 billion in 2009. With the ability to move that kind of volume, this is one stock with major growth potential.
Watts Water Technologies (WTS) – $51.81/share: Now with operations in North America, Europe, Asia and Africa, Watts’ new objective is to increase sales and earnings by expanding into new markets. Sounds like a good plan to me!