Buy Regal Rexnord Stock. The Industrial Company’s Shares Could Gain 40%.

Zigging when everyone is zagging can be a good strategy, even if it means some short-term pain. That appears to be the case with


Regal Rexnord


whose stock looks like a buy following a recent selloff.

Industrial stocks have been on fire lately. The


Industrial Select Sector SPDR


exchange-traded fund (ticker: XLI) has gained about 20% since the end of September, about double the


S&P 500


index’s 10% gain over the same span, while


Caterpillar


(CAT) has jumped 40% and


Rockwell Automation


(ROK) has gained 20%. Yet Regal Rexnord (RRX), a maker of motors and powertrain equipment used in factories, has slumped 15% over the same period.