The theme over the last year or so has focused on technology. Artificial intelligence, computing power and the return of the cloud have driven plenty of gains for the big tech names. The IPO market has returned, with many tech firms becoming public. Investor fascination has certainly returned to the sector. But with big tech’s rise and all the gains, the sector has started to get a bit expensive — even prompting dot.com comparisons.
But, what if there was a way to get some of the same growth potential at a cheaper price? Maybe even sprinkle in a better overall dividend yield?
The industrials could be the answer. The sector has shed its boring past, with a hefty dose of its own tech-like growth. New forays into automation, AI, software and a return of onshore production have lit a fire under these stocks. The best part is that investors have the potential to score this growth and a higher yield at much more reasonable valuations. For investors, the ignored industrials could be a great long-term buy at these levels.
