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Philly Fed Manufacturing Index Remains Robust: 4 Great Picks
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Per the latest report from the Federal Reserve Bank of Philadelphia, manufacturing activity in the region expanded at a faster pace than in June. The Philly Fed manufacturing index registered a 6-point growth in July. Such a surge was made possible by steadily increasing prices of purchased inputs.
Further, U.S. industrial production rebounded in the month of June buoyed by an increase in manufacturing and mining output. Under such circumstances, investing in manufacturing stocks seems prudent.
Manufacturing Activity Goes From Strength to Strength
The Philly Fed manufacturing index increased to 25.7% in July from 19.9% in June. When the index is above 0% it indicates factory-sector growth. Further, such an increase also depicts that general business conditions in the region have been improving steadily.
The index has risen more than 30 points since January. Moreover, the prices-paid index improved to 62.9% in July from 51.8% last month. The current prices index, which depicts manufacturers’ own prices, increased 3 points. Further, new orders index surged to 31.4% from 17.9% last month and the delivery times index improved to 11.0% from 9.6%.
On the other hand, the Empire State manufacturing survey, which reflects the business conditions in New York, came in at 22.6% in July. Although the metric eased from 25.0% in June, the reading remained positive for the month. Moreover, New York Federal Reserve stated that business activity flourished at a “fairly brisk pace.” Also, the body stated that the current reading is at “still a high level.”
U.S. Industrial Production Grows for 3 Straight Quarters
On a year-year-year basis, industrial production in the United States increased 0.6% in the month of June and 6% in the second quarter. This also marked its third consecutive quarterly increase. Further, manufacturing output increased steadily by 0.8% in the month and 1.9% over the second quarter.
Strong industrial production figures indicate the strength in the U.S. economy. Moreover, manufacturing accounts for about 12% of the domestic economy and any increase in the metric suggests that the economy is burgeoning.
4 Hot Choices
Manufacturing activity is burgeoning across the United States. Such a claim can be backed by steadily improving levels of regional manufacturing indices in the country. The Philly Fed manufacturing index improved considerably in July on the back of improving manufacturers’ prices. Such conditions also indicate that business conditions remain favorable for manufacturers.
In this context, we have selected four crypto related stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. (GGG - Free Report) is a leading provider of premium pumps and spray equipment for fluid handling in the construction, manufacturing, processing and maintenance industries.
The company is based out of Minneapolis, MN and has a Zacks Rank #1. The expected earnings growth rate for the current year is 32.10%. The Zacks Consensus Estimate for the current year has improved 6.2% over the past 90 days.
Caterpillar Inc. (CAT - Free Report) manufactures and sells mining and construction equipment, natural gas engines, diesel-electric locomotives and other related products in the market.
The company is based out of Deerfield, IL and has a Zacks Rank #1. The expected earnings growth rate for the current year is 56.29%. The Zacks Consensus Estimate for the current year has improved 0.6% over the past 60 days.
Terex Corporation (TEX - Free Report) is a global manufacturer of lifting and material processing products and services.
The company is based out of Westport, CT and has a Zacks Rank #2. The expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 0.7% over the past 60 days.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market.
The company is based out of Detroit, MI and has a Zacks Rank #2. The expected earnings growth rate for the current year is 2.72%. The Zacks Consensus Estimate for the current year has improved 1.3% over the past 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Philly Fed Manufacturing Index Remains Robust: 4 Great Picks
Per the latest report from the Federal Reserve Bank of Philadelphia, manufacturing activity in the region expanded at a faster pace than in June. The Philly Fed manufacturing index registered a 6-point growth in July. Such a surge was made possible by steadily increasing prices of purchased inputs.
Further, U.S. industrial production rebounded in the month of June buoyed by an increase in manufacturing and mining output. Under such circumstances, investing in manufacturing stocks seems prudent.
Manufacturing Activity Goes From Strength to Strength
The Philly Fed manufacturing index increased to 25.7% in July from 19.9% in June. When the index is above 0% it indicates factory-sector growth. Further, such an increase also depicts that general business conditions in the region have been improving steadily.
The index has risen more than 30 points since January. Moreover, the prices-paid index improved to 62.9% in July from 51.8% last month. The current prices index, which depicts manufacturers’ own prices, increased 3 points. Further, new orders index surged to 31.4% from 17.9% last month and the delivery times index improved to 11.0% from 9.6%.
On the other hand, the Empire State manufacturing survey, which reflects the business conditions in New York, came in at 22.6% in July. Although the metric eased from 25.0% in June, the reading remained positive for the month. Moreover, New York Federal Reserve stated that business activity flourished at a “fairly brisk pace.” Also, the body stated that the current reading is at “still a high level.”
U.S. Industrial Production Grows for 3 Straight Quarters
On a year-year-year basis, industrial production in the United States increased 0.6% in the month of June and 6% in the second quarter. This also marked its third consecutive quarterly increase. Further, manufacturing output increased steadily by 0.8% in the month and 1.9% over the second quarter.
Strong industrial production figures indicate the strength in the U.S. economy. Moreover, manufacturing accounts for about 12% of the domestic economy and any increase in the metric suggests that the economy is burgeoning.
4 Hot Choices
Manufacturing activity is burgeoning across the United States. Such a claim can be backed by steadily improving levels of regional manufacturing indices in the country. The Philly Fed manufacturing index improved considerably in July on the back of improving manufacturers’ prices. Such conditions also indicate that business conditions remain favorable for manufacturers.
In this context, we have selected four crypto related stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. (GGG - Free Report) is a leading provider of premium pumps and spray equipment for fluid handling in the construction, manufacturing, processing and maintenance industries.
The company is based out of Minneapolis, MN and has a Zacks Rank #1. The expected earnings growth rate for the current year is 32.10%. The Zacks Consensus Estimate for the current year has improved 6.2% over the past 90 days.
Caterpillar Inc. (CAT - Free Report) manufactures and sells mining and construction equipment, natural gas engines, diesel-electric locomotives and other related products in the market.
The company is based out of Deerfield, IL and has a Zacks Rank #1. The expected earnings growth rate for the current year is 56.29%. The Zacks Consensus Estimate for the current year has improved 0.6% over the past 60 days.
Terex Corporation (TEX - Free Report) is a global manufacturer of lifting and material processing products and services.
The company is based out of Westport, CT and has a Zacks Rank #2. The expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 0.7% over the past 60 days.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market.
The company is based out of Detroit, MI and has a Zacks Rank #2. The expected earnings growth rate for the current year is 2.72%. The Zacks Consensus Estimate for the current year has improved 1.3% over the past 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>