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4 Stocks to Boost Your Portfolio as Manufacturing Activity Rebounds
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Key Takeaways
Manufacturing PMI rose to 52.7 in March, highest since August 2022, signaling sector expansion.
Higher demand and slower supplier deliveries drove growth, with Deliveries Index up to 58.9.
Astec, Nordson, RBC Bearings, and Zebra show solid earnings growth and estimate revisions.
The U.S. manufacturing sector has been trying to stage a comeback after months of struggle. Manufacturing activity picked up in March to its highest level in more than three years and for the third straight month, indicating that the sector is on track to make a solid rebound this year.
Despite price challenges, higher demand has been boosting manufacturing activity. Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — Astec Industries, Inc. (ASTE - Free Report) , Nordson Corporation (NDSN - Free Report) , RBC Bearings Incorporated (RBC - Free Report) and Zebra Technologies Corporation (ZBRA - Free Report) — that we have detailed below. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assures good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manufacturing Activity Accelerates
The ISM Manufacturing PMI rose to 52.7 in March, after rising to 52.4 in February and beating the consensus estimate of a rise to 52.5. This is the highest reading since August 2022 and the third straight month that the PMI was above the 50 reading.
Any reading above 50 suggests an expansion. The expansion in March was largely driven by longer supplier delivery times, which are typically linked to a strong economy and higher customer demand. However, this also hints at slower deliveries.
The Deliveries Index rose to 58.9 in March from 55.1 a month earlier. However, continued demand helped boost the sector. The Federal Reserve held interest rates unchanged at its current range of 3.5% to 3.75% in its March FOMC meeting.
Inflation also spiked in March as oil prices continued to soar owing to the Iran conflict. However, a two-week ceasefire that was announced last week is expected to ease tensions. Market participants are hopeful that the Federal Reserve will go for at least one 25 basis point rate cut this year once inflation eases further.
4 Industrial Products Stocks With Upside
Astec Industries
Astec Industries, Inc. designs, engineers, manufactures, markets and services equipment and components used primarily in asphalt and concrete road building, with offerings for mining, quarrying, construction, demolition, land clearing, energy, recycling and port operations. ASTE’s Products span the road-building lifecycle, from aggregate quarrying to asphalt application.
Astec Industries’ expected earnings growth for the current year is 13.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.5% over the past 60 days. ASTE has a Zacks Rank #1.
Nordson Corporation
Nordson Corporation is one of the leading manufacturers as well as distributors of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials and other fluids. NDSN’s product line includes single-use components, stand-alone units for low-volume operations and microprocessor-based automated systems for high-speed, high-volume production lines.
Nordson’s expected earnings growth for the current year is 11.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. NDSN carries a Zacks Rank #2.
RBC Bearings Incorporated
RBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss and enable proper power transmission in most machines and mechanical systems.
RBC’s expected earnings growth for the current year is 23.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. RBC carries a Zacks Rank #2.
Zebra Technologies Corporation
Zebra Technologies Corporation is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry throughout the world. ZBRA has a diversified portfolio of products and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, as well as managed and professional services.
Zebra Technologies Corporation’s expected earnings growth for the current year is 13.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ZBRA carries a Zacks Rank #2.
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4 Stocks to Boost Your Portfolio as Manufacturing Activity Rebounds
Key Takeaways
The U.S. manufacturing sector has been trying to stage a comeback after months of struggle. Manufacturing activity picked up in March to its highest level in more than three years and for the third straight month, indicating that the sector is on track to make a solid rebound this year.
Despite price challenges, higher demand has been boosting manufacturing activity. Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — Astec Industries, Inc. (ASTE - Free Report) , Nordson Corporation (NDSN - Free Report) , RBC Bearings Incorporated (RBC - Free Report) and Zebra Technologies Corporation (ZBRA - Free Report) — that we have detailed below. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assures good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manufacturing Activity Accelerates
The ISM Manufacturing PMI rose to 52.7 in March, after rising to 52.4 in February and beating the consensus estimate of a rise to 52.5. This is the highest reading since August 2022 and the third straight month that the PMI was above the 50 reading.
Any reading above 50 suggests an expansion. The expansion in March was largely driven by longer supplier delivery times, which are typically linked to a strong economy and higher customer demand. However, this also hints at slower deliveries.
The Deliveries Index rose to 58.9 in March from 55.1 a month earlier. However, continued demand helped boost the sector. The Federal Reserve held interest rates unchanged at its current range of 3.5% to 3.75% in its March FOMC meeting.
Inflation also spiked in March as oil prices continued to soar owing to the Iran conflict. However, a two-week ceasefire that was announced last week is expected to ease tensions. Market participants are hopeful that the Federal Reserve will go for at least one 25 basis point rate cut this year once inflation eases further.
4 Industrial Products Stocks With Upside
Astec Industries
Astec Industries, Inc. designs, engineers, manufactures, markets and services equipment and components used primarily in asphalt and concrete road building, with offerings for mining, quarrying, construction, demolition, land clearing, energy, recycling and port operations. ASTE’s Products span the road-building lifecycle, from aggregate quarrying to asphalt application.
Astec Industries’ expected earnings growth for the current year is 13.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.5% over the past 60 days. ASTE has a Zacks Rank #1.
Nordson Corporation
Nordson Corporation is one of the leading manufacturers as well as distributors of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials and other fluids. NDSN’s product line includes single-use components, stand-alone units for low-volume operations and microprocessor-based automated systems for high-speed, high-volume production lines.
Nordson’s expected earnings growth for the current year is 11.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. NDSN carries a Zacks Rank #2.
RBC Bearings Incorporated
RBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss and enable proper power transmission in most machines and mechanical systems.
RBC’s expected earnings growth for the current year is 23.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the past 60 days. RBC carries a Zacks Rank #2.
Zebra Technologies Corporation
Zebra Technologies Corporation is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry throughout the world. ZBRA has a diversified portfolio of products and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, as well as managed and professional services.
Zebra Technologies Corporation’s expected earnings growth for the current year is 13.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ZBRA carries a Zacks Rank #2.