While the market has had a strong start to the year, plenty of companies are still well off their highs. For the right companies, this can create an opportunity to build substantial wealth and a growing stream of income.
That’s especially true in parts of the market that tend to get overlooked. In a bull market, the focus tends to be on tech stocks. So far this bear market, investors have flocked to energy and utilities.
That’s why other areas like industrial stocks still shine. Especially when those companies are pushing for future growth.
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That’s where Linde (LIN) comes in. The industrial gas company is expanding investments into hydrogen, which could be a major source of energy in the years ahead.
Linde grew earnings by 30 percent last year, and revenues rose by 15 percent, even in a slowing economy. It’s a big player in a field with only a few players, which will likely allow the company to see its growth plans play out over the next few years.
Action to take: Investors may like shares at current prices or on a pullback. It’s not a huge dividend payer with a 1.4 percent yield. But the company does have a history of increasing that payout over time.
For traders, the stock has pulled back slightly in recent weeks, but looks set to move higher in the months ahead. The July $350 calls, last going for about $12.60, offer mid-double-digit returns on a move higher for the industrial giant.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.