If you think all old-line companies in America’s industrial heartland are basket cases, think again. That’s a false narrative. With the Fourth of July looming on the calendar, now’s a good time for me to set the record straight about our country’s industrial base.

Many industrial firms based in the United States don’t need slogans; they’re already great. Below, I pinpoint three industrial sector stocks that are future bonanzas for investors, but they don’t get the same fawning media coverage as glamorous “story stocks.”

Sure, the world has shifted to an information-based economy, creating winners and losers. But in recent years, a quiet revolution has unfolded in the U.S. economy: many domestic industrial companies are in the ascendancy. They’re streamlining operations, spawning innovation and adding jobs. As flashier technology and consumer stocks hog the media spotlight, these unsung heroes of the so-called Rust Belt are belittled.

Let’s look at three of the best. As the economic recovery gathers steam and consumers emerge from pandemic-induced lockdowns, this trio of cyclical plays should perform well during the second half of 2021 and beyond. They also sport reasonable valuations and appealing dividends.

Union Pacific (NYSE: UNP)

This railroad operator combines new technology with roll-up-your-sleeves industrial activity. The stock may lack glamor, but Union Pacific continually upgrades its infrastructure and embraces the latest advances in transportation.

Keep your eye on the reviving transportation sector. The SPDR S&P Transportation ETF (XTN) is up 19.0% year to date, compared to a YTD gain of 14.4% for the S&P 500, as of market close June 30. See the following chart:

Based in Omaha, Nebraska, Union Pacific (market cap: $146.1 billion) is the largest freight-hauling railroad in North America. UNP operates 8,500 locomotives over 32,313 route-miles throughout 23 states in the U.S. Union Pacific’s operations in the central and western half of the U.S. are valuable territory, giving the company enormous price elasticity.

Founded in 1862, UNP was a barometer for overall economic growth during the American industrial revolution of the 19th century…and it still is today. President Biden’s massive infrastructure spending proposals should provide a boon for transportation stalwarts such as UNP.

The analyst consensus is for UNP to generate year-over-year earnings growth of 44.9% in the current quarter and 17.6% for the full year. Five-year earnings growth is projected to reach 13.4%, on an annualized basis. The 12-month forward price-to-earnings (P/E) ratio is a slight premium at 22.7. The stock has a dividend yield of 1.95%.

Whirlpool (NYSE: WHR)

With a market cap of $13.6 billion, Whirlpool manufactures and markets home appliances worldwide, including laundry machines, refrigerators and freezers, air conditioners, dishwashers and mixers.

Every Big Box retail store features the company’s ubiquitous brands: Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator and many others.

Founded in 1898 and headquartered in Benton Harbor, Michigan, WHR is benefiting from the economic recovery in North America and further leveraging growth by cutting costs, modernizing its supply chain and targeting emerging markets.

The company also is embedding its appliances with sensors and integrating them into the Internet of Things. As consumers scoop up increasingly popular “smart appliances” this summer, Whirlpool stock should soar.

The analyst consensus is for WHR to generate year-over-year earnings growth of 175.8% in the current quarter and 27.9% for full-year 2021. Five-year earnings growth is projected to reach 7.7%, on an annualized basis. And yet, the stock’s 12-month forward P/E ratio is only 10.1, making the stock a bargain in light of growth prospects. The stock’s dividend yield is 2.60%.

Cummins (NYSE: CMI)

Founded in 1919 and headquartered in Columbus, Ind., Cummins makes, sells and services natural-gas engines and components for a wide variety of vehicles in a host of industries, notably automotive, agricultural, construction, and mining.

Cummins (market cap: $35.6 billion) caters to both the private and public sectors and has established a reputation as a premier maker of compact, efficient engines that still pack plenty of heft. The company is now in the vanguard of a game-changer in engine technology: the switch to natural gas.

The natural gas boom has already transformed the U.S. utility industry, as plentiful and cheap natural gas displaces coal and lowers electricity costs. Now the trucking industry is abandoning diesel in favor of cleaner-burning natural gas.

The trucking sector is enjoying the benefits of economic recovery, boosting demand for engines. Cummins offers new, low-emissions natural gas engines for the transportation industry that are in great demand and will drive company sales this year and beyond.

The analyst consensus is for CMI to generate year-over-year earnings growth of 107.2% in the current quarter and 33.8% for full-year 2021. Five-year earnings growth is projected to reach 17.6%, on an annualized basis. The stock’s 12-month forward P/E ratio is only 15.0. The dividend yield is 2.24%.

Tales of American greatness…

Got a story about an old-line industrial company based in the U.S. that you think is a great investment? Shoot me an email and let me know about it: mailbag@investingdaily.com. — John Persinos

In the meantime, as the world economy resumes growth and infrastructure spending explodes, so will demand for commodities. For our favorite commodities play, click here now.