Below are the three companies in the Construction & Farm Machinery industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.

Sauer-Danfoss ranks highest with a an operating margin of 17.3%. Cascade is next with a an operating margin of 17.0%. Wabtec ranks third highest with a an operating margin of 15.1%.

Trinity Industries follows with a an operating margin of 13.2%, and WABCO Holdings rounds out the top five with a an operating margin of 13.1%.

SmarTrend recommended that subscribers consider buying shares of Cascade on December 2nd, 2011 as our technology indicated a new Uptrend was in progress when shares hit $46.32. Since that recommendation, shares of Cascade have risen 25.8%. We continue to monitor Cascade for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.