HARTFORD, Conn.--(BUSINESS WIRE)--Corbin Perception, a leading investor research and investor relations (IR) advisory firm, today launched its maiden Industrials Sector Sentiment Survey, within its Inside The Buy-side® research group, pulsing global investor and analyst views following 12 months of industrial sector underperformance relative to the S&P 500. Corbin’s independent poll identifies emerging trends, vertical bright spots and views around cycle timing and pockets of recovery that serve to assist both investors and corporates with navigating the diverse global industrial landscape.
The survey, comprising input from 58 institutional investors and sell-side analysts globally who follow the industrial sector, finds sentiment neutral to more bullish, as expectations seemingly have reset following largely uninspiring first quarter results and forward-looking commentary validating muted organic growth in 2015. Contributing firms manage $3.2 trillion in total assets and have $206 billion invested in industrials as of March 31, 2015.1
“It would appear that additional downward revisions are largely priced in and that any potential short term-related stock price pressure in the back half of the year could prove a buying opportunity,” commented Rebecca Corbin, Founder and Managing Partner of Corbin Perception. “Investor commentary would indicate that companies posting solid organic growth, all else being equal, should outperform.”
Surveyed investors and analysts proffer positive views of the construction market, including both non-residential and residential, along with commercial aerospace and generally improved sentiment towards the Western European economy. Conversely, the Chinese economy and the metals and mining and agriculture markets are areas of concern for investors.
Initial views on 2016 growth across the industrials sector are largely neutral to more constructive, with 42% of participants expecting growth to accelerate off lower 2015 levels. While fear of a U.S. recession in the next 12 to 24 months is minimal, 60% predict a downturn 2 to 3 years out.
“Multiples have room to expand from here. We are at a mid-cycle slowdown and industrials have underperformed the market. I expect an acceleration of growth to drive industrials to perform,” said one buy-side participant.
Finally, the majority of industrial investors endorsed organic business reinvestment as the preferred use of excess free cash as excitement around M&A and enthusiasm for share buybacks appear to have waned given perceived relative high multiples.
Since 2006, Corbin Perception has tracked investor sentiment on a quarterly basis. Inside The Buy-side® and other research on real-time investor sentiment, IR best practices and case studies are available at CorbinPerception.com.
About Corbin Perception
Corbin Perception is a leading investor research and IR advisory firm assisting public companies with creating long-term shareholder value. We leverage our broad company and industry experience, knowledge of best practices and benchmarking capabilities to provide research-driven counsel that enables our clients, sophisticated mega-caps to micro-caps worldwide across diverse sectors, to differentiate their company as an investment. Our research, Inside The Buy-side®, based on ongoing investor sentiment surveys, is covered by news affiliates worldwide and featured regularly on CNBC.
To access the full report, visit our website: CorbinPerception/Research.
1 Source: Thomson Reuters
