(C) Reuters. 4 Manufacturing Stocks to Buy as the Industrial Sector Heats Up
Against a backdrop of dovish monetary policy and protectionist trade relations, the U.S. manufacturing sector has been recovering rapidly. And because manufacturing activities are expected to increase significantly in the coming months with an anticipated economic recovery, we think it’s wise to bet now on Corning (GLW), Timken (TKR), Mueller (MLI), and Vishay Precision (VPG). They are established players in this space. Read on.The manufacturing sector has been recovering steadily in 2021, driven by a near-zero interest rate environment and a robust federal recovery package. According to the Institute for Supply Management (ISM), its index of national factory activity jumped to a reading of 64.7 in March 2021 from 60.8 in February 2021, which was the highest level since December 1983.
President Joe Biden’s proposed $2 trillion-plus infrastructure plan is also expected to be a major tailwind for the manufacturing companies if passed. This has translated into growing investor interest in manufacturing stocks, as is evident by the Industrial Select Sector SPDR ETF’s (XLI) 24.3% gains over the past six months.
So, we think it is wise to buy the shares of manufacturing companies Corning Incorporated (NYSE:GLW), The Timken Company (NYSE:TKR), Mueller Industries, Inc. (NYSE:MLI), and Vishay Precision Group, Inc. (NYSE:VPG). These companies are well-positioned to generate big returns in the coming months based on their diversified operations.
4 Manufacturing Stocks to Buy as the Industrial Sector Heats Up
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