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The Industrial Select Sector SPDR Fund (XLI)
After hours:
| Previous Close | 138.85 |
| Open | 139.21 |
| Bid | 139.18 x 1400 |
| Ask | 140.26 x 1200 |
| Day's Range | 138.43 - 139.33 |
| 52 Week Range | 96.12 - 139.77 |
| Volume | |
| Avg. Volume | 7,735,421 |
| Net Assets | 19.62B |
| NAV | 139.23 |
| PE Ratio (TTM) | 29.91 |
| Yield | 1.36% |
| YTD Daily Total Return | 23.37% |
| Beta (5Y Monthly) | 1.09 |
| Expense Ratio (net) | 0.09% |
| Inception Date | 1998-12-16 |
- Yahoo Finance Video
2 underrated industrial plays according to this analyst
Jonathan Sakraida, CFRA Research analyst, joins Market Domination to discuss some lesser-known plays in the industrials sector (XLI). Sakraida points to Vertiv (VRT) as an opportunity, noting that it's a great data center infrastructure play as the AI race heats up. "They are a leading manufacturer and service provider for thermal cooling and power management systems for data centers. Data centers represent just around 75% of their sales. But at the end of this year, we're expecting that to be more like 80-85%, just given how robust this growth is," he explains. He also points to Xylem (XYL), which is a play tied to the 2021 federal stimulus. "It's been very slow to work its way down to the project activity level, but we're starting to see some pickup," he tells Yahoo Finance. Sakraida notes that about $550 billion of stimulus will be dispersed over the next few years. Xylem is a water infrastructure play, and he calls it a "leader in this space" with more upside to go. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Melanie Riehl
- Yahoo Finance Video
Why the industrial sector is trading at a premium to the S&P 500
Jonathan Sakraida, CFRA Research analyst, joins Market Domination to lay out the state of the industrial sector (XLI) and discuss the performance of names like Deere & Company (DE) and Caterpillar (CAT). The industrial sector has been showing strength, which Sakraida notes has largely been driven by easing interest rates. "That 50 basis [point] cut really was a catalyst to drive this sector forward... last year, the sector was up 18%. This year it's up 20% year to date. So there's really high expectations looking really to 2025 as far as a recovery in sales and earnings growth and really a recovery in capital spending towards large capital goods like machinery," he tells Yahoo Finance. On the other hand, he notes that valuations have gone up and multiples have increased, which he calls a "premium to the S&P 500 (^GSPC)." With that backdrop, he advises, "it really would be prudent for investors to be a bit more selective in this space and be a bit more discerning as far as where they're allocating their capital." Sakraida has downgraded Deere from Hold to Sell, explaining that there is a continuation in the deterioration of fundamentals within agriculture and farm machinery: "There has been record harvest yields across a number of different crops, and this has only helped to balloon supplies. Prices have suffered quite significantly." While Deere has reiterated its profit guidance last quarter, he still believes there is "high risk" in the second half of 2024, and the company could end up cutting that guidance. He adds, "And while lower interest rates are going to be a tailwind, they can't outperform those lower commodity prices. At the end of the day, farmer incomes are decreasing and that's going to hurt Deere and Co." Sakraida has a Hold rating on Caterpillar, noting that the company will experience some favorable tailwinds, especially in its power generation business as the AI race continues to heat up. However, this is not the majority of the business, and most of its sales exist outside of the US where there are currently increased geopolitical risks. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Melanie Riehl
