Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 5.9% has trailed the S&P 500’s 8.2% gain.

Kennametal stock has delivered a strong 47.5% return over the past year, yet at around US$34.32 the valuation picture now looks more balanced than clearly cheap or clearly stretched. The 47.5% gain over the last 12 months suggests sentiment toward Kennametal has improved significantly, so fresh buyers are no longer looking at a depressed share price. Future returns can be influenced by how reliably Kennametal converts its revenue into cash flow, while any sustained pressure on margins may...

FAST beats Q2 sales estimates as contract customer growth and digital sales gained momentum, but margin pressures and weaker cash flow weighed on the stock.