We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: DE, AGCO, ASTE, NPO and KAMN
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 9, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Deere & Co. (DE - Free Report) , AGCO Corp. (AGCO - Free Report) , Astec Industries Inc. (ASTE - Free Report) , EnPro Industries Inc. (NPO - Free Report) and Kaman Corp. .
Here are highlights from Tuesday’s Analyst Blog:
U.S. Manufacturing Headed for V-Shaped Recovery: 5 Top Picks
The U.S. manufacturing sector struggled throughout 2019 from a prolonged trade and tariff tussle between the United States and China. However, it is showing signs of a V-shaped recovery this year, defying coronavirus-induced devastations.
According to the Institute for Supply Management (ISM), the manufacturing sector, which constitutes around 12% of the U.S. GDP, has been on an uptrend for the last four months. Notably, the emergence of the second wave of coronavirus failed to derail the steady improvement in the sector.
U.S. Manufacturing Rebounds Impressively
On Sep 1, the ISM reported that the U.S. manufacturing purchasing managers' index (PMI) for August came in at 56, its highest reading since January 2019. The consensus estimate was 54.5 for August while July's PMI was 54.2. Notably, any reading above 50 indicates expansion in manufacturing activities.
Moreover, August was the fourth consecutive month of manufacturing uptrend after the index hit an 11-year low of 41.5% in April. Furthermore, 15 of the 18 industries tracked by ISM expanded in August, up from 13 in the previous month.
The ISM reported that manufacturing production jumped to 63.3 in August from 62.1 in July. Meanwhile, new orders climbed to 67.6 in August from 61.5 in July. the employment index rose to 46.4 in August from 44.2 in July. However, the index is still below 50, implying job retrenchment in this sector.
Per Tim Fiore, chairman of the ISM’s business survey committee, August marked “the first full month of operations after supply chains restarted and adjustments were made for employees to return to work.”
Moreover, the IHS Markit reported that its final PMI for the U.S. manufacturing sector rose to 53.1 in August from 50.9 in July, reflecting that the U.S. manufacturing industries are turning out gradually. This was the fastest monthly expansion since January 2019.
Near-Term Drivers
A series of economic data from April to August like the job market, the housing market, vehicle sales, retail sales, manufacturing and services along with better-than-expected second-quarter GDP and corporate earnings revealed that the pandemic-led economic devastations were not as severe as expected earlier.
The U.S. economy will gradually return to the pre-pandemic level as more parts of it reopen. These positives will set in motion cyclical industries such as manufacturing.
As the U.S. and major global economies reopen, the manufacturing sector should strengthen as export demand for high-tech manufacturing products of the country will likely increase. Finally, the Fed has decided to keep the benchmark interest rate as low as 0-0.25% for a longer period than previously expected.
A low interest rate will significantly reduce the cost of capital and make U.S. currency cheaper in the foreign exchange market, making the country's products more competitively priced.
Our Top Picks
At this stage, we have narrowed down our search to five manufacturing stocks that have rallied in the past four months and saw encouraging earnings estimate revision within the last 60 days. This indicates investor optimism over these companies' business potential for the rest of this year.
Moreover, these stocks are regular dividend payers, which will act as a regular income stream to investors in market's downturn. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere & Co.manufactures and distributes farm equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Zacks Consensus Estimate for its current-year earnings has improved 19% over the last 30 days. The stock price has soared 59% in the past four months and has a dividend yield of 1.44%.
AGCO Corp.manufactures and distributes agricultural equipment like high horsepower tractors, utility tractors and compact tractors and related replacement parts worldwide. It offers hay tools and forage equipment also. The Zacks Consensus Estimate for its current-year earnings has improved 4.8% over the last 7 days. The stock price has jumped 48.6% in the past four months and has a dividend yield of 0.87%.
Astec Industries Inc. manufactures and sells equipment and components for the road building, aggregate processing, geothermal, water, oil and gas and wood processing industries in the United States and internationally. The Zacks Consensus Estimate for its current-year earnings has improved 50.4% over the last 60 days. The stock price has climbed 42.7% in the past four months and has a dividend yield of 0.82%.
EnPro Industries Inc.designs, develops, manufactures, and markets engineered industrial products worldwide. The company operates in two segments, Sealing Products and Engineered Products. The Zacks Consensus Estimate for its current-year earnings has improved 44.4% over the last 60 days. The stock price has surged 32.1% in the past four months and has a dividend yield of 1.78%.
Kaman Corp. operates in the aerospace and industrial distribution markets. It operates through two segments, Distribution and Aerospace. The Zacks Consensus Estimate for its current-year earnings has improved 13% over the last 30 days. The stock price has advanced 20.1% in the past four months and has a dividend yield of 1.80%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that have beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: DE, AGCO, ASTE, NPO and KAMN
For Immediate Release
Chicago, IL – September 9, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Deere & Co. (DE - Free Report) , AGCO Corp. (AGCO - Free Report) , Astec Industries Inc. (ASTE - Free Report) , EnPro Industries Inc. (NPO - Free Report) and Kaman Corp. .
Here are highlights from Tuesday’s Analyst Blog:
U.S. Manufacturing Headed for V-Shaped Recovery: 5 Top Picks
The U.S. manufacturing sector struggled throughout 2019 from a prolonged trade and tariff tussle between the United States and China. However, it is showing signs of a V-shaped recovery this year, defying coronavirus-induced devastations.
According to the Institute for Supply Management (ISM), the manufacturing sector, which constitutes around 12% of the U.S. GDP, has been on an uptrend for the last four months. Notably, the emergence of the second wave of coronavirus failed to derail the steady improvement in the sector.
U.S. Manufacturing Rebounds Impressively
On Sep 1, the ISM reported that the U.S. manufacturing purchasing managers' index (PMI) for August came in at 56, its highest reading since January 2019. The consensus estimate was 54.5 for August while July's PMI was 54.2. Notably, any reading above 50 indicates expansion in manufacturing activities.
Moreover, August was the fourth consecutive month of manufacturing uptrend after the index hit an 11-year low of 41.5% in April. Furthermore, 15 of the 18 industries tracked by ISM expanded in August, up from 13 in the previous month.
The ISM reported that manufacturing production jumped to 63.3 in August from 62.1 in July. Meanwhile, new orders climbed to 67.6 in August from 61.5 in July. the employment index rose to 46.4 in August from 44.2 in July. However, the index is still below 50, implying job retrenchment in this sector.
Per Tim Fiore, chairman of the ISM’s business survey committee, August marked “the first full month of operations after supply chains restarted and adjustments were made for employees to return to work.”
Moreover, the IHS Markit reported that its final PMI for the U.S. manufacturing sector rose to 53.1 in August from 50.9 in July, reflecting that the U.S. manufacturing industries are turning out gradually. This was the fastest monthly expansion since January 2019.
Near-Term Drivers
A series of economic data from April to August like the job market, the housing market, vehicle sales, retail sales, manufacturing and services along with better-than-expected second-quarter GDP and corporate earnings revealed that the pandemic-led economic devastations were not as severe as expected earlier.
The U.S. economy will gradually return to the pre-pandemic level as more parts of it reopen. These positives will set in motion cyclical industries such as manufacturing.
As the U.S. and major global economies reopen, the manufacturing sector should strengthen as export demand for high-tech manufacturing products of the country will likely increase. Finally, the Fed has decided to keep the benchmark interest rate as low as 0-0.25% for a longer period than previously expected.
A low interest rate will significantly reduce the cost of capital and make U.S. currency cheaper in the foreign exchange market, making the country's products more competitively priced.
Our Top Picks
At this stage, we have narrowed down our search to five manufacturing stocks that have rallied in the past four months and saw encouraging earnings estimate revision within the last 60 days. This indicates investor optimism over these companies' business potential for the rest of this year.
Moreover, these stocks are regular dividend payers, which will act as a regular income stream to investors in market's downturn. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Deere & Co.manufactures and distributes farm equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Zacks Consensus Estimate for its current-year earnings has improved 19% over the last 30 days. The stock price has soared 59% in the past four months and has a dividend yield of 1.44%.
AGCO Corp.manufactures and distributes agricultural equipment like high horsepower tractors, utility tractors and compact tractors and related replacement parts worldwide. It offers hay tools and forage equipment also. The Zacks Consensus Estimate for its current-year earnings has improved 4.8% over the last 7 days. The stock price has jumped 48.6% in the past four months and has a dividend yield of 0.87%.
Astec Industries Inc. manufactures and sells equipment and components for the road building, aggregate processing, geothermal, water, oil and gas and wood processing industries in the United States and internationally. The Zacks Consensus Estimate for its current-year earnings has improved 50.4% over the last 60 days. The stock price has climbed 42.7% in the past four months and has a dividend yield of 0.82%.
EnPro Industries Inc.designs, develops, manufactures, and markets engineered industrial products worldwide. The company operates in two segments, Sealing Products and Engineered Products. The Zacks Consensus Estimate for its current-year earnings has improved 44.4% over the last 60 days. The stock price has surged 32.1% in the past four months and has a dividend yield of 1.78%.
Kaman Corp. operates in the aerospace and industrial distribution markets. It operates through two segments, Distribution and Aerospace. The Zacks Consensus Estimate for its current-year earnings has improved 13% over the last 30 days. The stock price has advanced 20.1% in the past four months and has a dividend yield of 1.80%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that have beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Join us on Facbook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.