Good morning, Basic fundamental analysis requires investors to ask certain questions. For example, how does a company make money? Do they make money now? Will they continue to do so in the future? This is why investors like manufacturing stocks. These companies build things. And not just stuff, but stuff that other businesses need to run their own businesses. That means that investments deliver strong revenue and earnings today while providing investors with the confidence of future growth. Manufacturing stocks are cyclical in nature, but the predictability of revenue – and more importantly – earnings make them incredibly safe investments. Plus, these are low beta stocks which means that they don’t have the volatility that higher growth stocks may offer. That may not be as thrilling when the economy is booming, but when the economy is struggling, these stocks tend to have higher lows. And because the market is always forward looking, manufacturing stocks tend to lead the recovery long before leading indicators point to a recovery being underway. Over the next decade, there are several megatrends that should support revenue and earnings growth. The 2002 Infrastructure Act is fueling projects throughout the fruited plan. Investors should also consider the push for U.S. companies to onshore their supply chains. Made in America sentiment may come and go, but the global pandemic and subsequent supply chain disruptions are making nimble supply chains a matter of strategic and economic importance for companies of all sizes. Plus, you have to consider that geopolitical concerns will likely run hot over the next several years. This will spark growth in defense stocks which tend to be less cyclical than manufacturing stocks in general. Here are seven manufacturing stocks that can form a base for every investor’s portfolio. For these and other reasons, here are seven manufacturing stocks that can help you build your portfolio. View the 7 Mighty Manufacturing Stocks to Build Your Portfolio Around Laycee Kluin
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