For Immediate Release
Chicago, IL – June 28, 2021 – 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: Tennant Company (
TNC Quick Quote TNC - Free Report) , Alcoa Corp. ( AA Quick Quote AA - Free Report) , Barnes Group Inc. ( B Quick Quote B - Free Report) , AGCO Corp. ( AGCO Quick Quote AGCO - Free Report) and Deere & Company ( DE Quick Quote DE - Free Report) . Here are highlights from Friday’s Analyst Blog: 5 Stocks to Make the Most of Record-High US Factory Data
Manufacturers of late are having a tough time securing raw materials and qualified laborers. But, despite such bottlenecks, U.S. factories are humming. After all, a measure of factory activity in the United States jumped to a record high in June. Citing a
Reuters article, IHS Markit’s flash U.S. manufacturing PMI climbed to a reading of 62.6 in June following May’s reading of 62.1. Now, that was the highest reading ever recorded by the survey since it began covering all manufacturing activities in October 2009, added the Reuters article.
An increase in the pace of coronavirus vaccination and trillions of dollars of stimulus packages have improved the well-being of individuals and improved manufacturing activities as well. In fact, the U.S. manufacturing sector is experiencing strong demand for goods, and manufacturers are undoubtedly finding it difficult to keep pace. But strong demand is no doubt a good problem to have.
Nonetheless, strength in the manufacturing sector increased expectations of double-digit economic growth in the second quarter. Notably, factory production jumped more than estimated last month. Industrial output advanced at a seasonally adjusted rate of 0.8% in May and easily surpassed economists’ expectations, noted the
In fact, manufacturing output that largely constitutes the overall industrial output rose 0.9% from the prior month, mostly due to an improvement in the output of motor vehicles and parts, the Federal Reserve added. As quoted in a
MarketWatch article, the output of motor vehicles and parts jumped 6.7% in the month of May following a drop of 5.7% in the prior month, indicating that semiconductor shortage isn’t impacting auto production anymore.
By the way, the Institute of Supply Management (ISM) also confirmed that factory activity has gained steam at present, thanks to the re-opening of the economy, the lifting of coronavirus-led curbs, and an increase in pent-up demand boosting orders. The ISM’s index of U.S. factory activity, as mentioned in another
Reuters article, came in at 61.2 in May, up from a reading of 60.7 in the prior month. The reading is more than economists’ expectations, and a reading above 50 does confirm expansion in the manufacturing sector.
Thus, with the key measure of U.S. factory activity hitting a record high along with other upbeat manufacturing numbers, it’s prudent to invest in top manufacturers that can make the most of the bullish trend and ramp up profits. We have, thus, selected five such stocks that possess a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Tennant Company designs, manufactures and markets floor cleaning equipment. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 19.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 49.5%. You can see the complete list of today’s Zacks #1 Rank stocks here . Alcoa Corp produces and sells bauxite, alumina, and aluminum products in the United States and internationally. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 13.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 509.5%. Barnes Group is a global diversified manufacturer and provider of highly engineered products, innovative solutions and differentiated industrial technologies. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 6.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 16.5%. AGCO Corp is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 18.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 54.6%. Deere is the world’s largest producer of agricultural equipment. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 11.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 105.9%. Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.