Michael Bapis Expects These Factors To Benefit Industrial Firms

On CNBC’s "Trading Nation," Michael Bapis of Vios Advisors discussed industrial earnings including Caterpillar Inc’s CAT prospects.

Infrastructure builds will occur as roads, tunnels, and bridges need to be updated. Amid economic recovery and government spending, manufacturing could increase despite supply chain issues, which will benefit industrial firms, he said. 

This earnings season is a "must watch" for industrials, with the outlook from these companies being most important.

Caterpillar’s shares have lost around 14% over the last six months amid a slowdown in China and the Evergrande crisis.

The company reported third-quarter earnings of $2.66 per share Thursday, topping the analyst estimate of $2.20. Sales of $12.4 billion missed the $12.48-billion Street estimate. 

CAT Price Action: Shares of Caterpillar declined by 1.8% to close at $196.13 on Wednesday and were trading slightly positive in Thursday's premarket session.