2 Magnificent Industrial Stocks Down 40% to Buy and Hold Forever
2026-08-05 16:10
•Leo Sun •The Motley Fool
••••••• ••••• Axe Cap view
Two Industrial Bargains to Watch, but Not for South Africa Yet
UPS and Fluor trade far below peak levels, offering value for patient global investors, though local links remain limited.
UPS and Fluor have both seen their stocks fall roughly 40% from all-time highs, reflecting pandemic aftershocks and business model shifts. UPS is slowly regaining footing after disrupted union talks and demand swings, with steady revenue and earnings growth expected around 2026. Its high dividend yield and reasonable valuation offer a classic value-income setup, but Amazon’s sourcing cuts remain a lingering concern. Fluor’s move towards reimbursable contracts—where clients cover costs plus fee—dramatically lowers execution risk, a big deal in construction where overruns are common. Plus, its recent $1.86 billion gain from selling a NuScale stake funds buybacks, and exposure to cloud, AI, and nuclear projects points to a future growth angle. Neither company has direct South African operations or listed peers to lean on, so rand-based investors should watch USD/ZAR for global risk appetite shifts. A weaker rand could cushion offshore losses or make local value plays more attractive in comparison. Be aware these projections hinge on stable global growth and no fresh supply chain shocks disrupting demand. this is just our opinion and not financial advice
Consider starting small positions in UPS and Fluor for the long term if you have USD exposure, but trim if their 2026 turnaround estimates slip. Local investors should monitor USD/ZAR volatility closely to time entry or evaluate alternatives.
- UPS
- FLR
- USD/ZAR
- Global recession dampening industrial activity
- Further Amazon or major client contract losses for UPS
5/10
UPS and Fluor, both trading 40% below their all-time highs, present buying opportunities for long-term value investors. UPS is stabilizing its business after pandemic-related challenges and union negotiations, with expected revenue and EPS growth returning in 2026. Fluor is shifting to less risky reimbursable contracts and benefiting from cloud, AI, and nuclear market expansion, with profitability expected to return in 2026.
Our take is based on reporting first published by The Motley Fool.