The Zacks Manufacturing – General Industrial industry is poised to benefit from improving supply chains, resulting in easier availability of raw materials and faster deliveries. Despite a slowdown in manufacturing activities, strength across prominent end markets should help the industry stay afloat.Investments in product development and technological advancements, and focus on expanding operations through strategic acquisitions are expected to boost the industry’s growth. Ingersoll Rand Inc. (IR) , Dover C ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June13th:Kirin (KNBWY) : This company which is engaged in the manufacture and sale of alcohol beverages and soft drinks, and an increasingly strong presence in advanced research and technology, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days.Kirin’s shares gained 0.5% over the last three month compared with th ...

Industry Overview - The U.S. manufacturing sector is still in contraction, with the ISM manufacturing PMI at 48.7% in May, down from 49.2% in April, indicating ongoing challenges since October 2022, except for a brief recovery in March 2023 [1] - The Zacks Manufacturing – General Industrial industry is positioned for growth due to easing supply-chain disruptions, despite a slowdown in manufacturing activities [1] - The General Industrial industry has provided 18.2% returns over the past year and is currently in the top 26% of the Zacks Industry Rank, suggesting potential outperformance in the next three to six months [2] Company Insights - **Applied Industrial Technologies Inc. (AIT)**: Expected revenue and earnings growth rates of 3% and 5.5% respectively for the year ending June 2025, with a current dividend yield of 0.8% [6] - **Crane Co. (CR)**: Anticipated revenue and earnings growth rates of 9.9% and 16.3% respectively for the current year, with a current dividend yield of 0.6% [7] - **Ingersoll Rand Inc. (IR)**: Expected revenue and earnings growth rates of 5.4% and 10.5% respectively for the current year, with a current dividend yield of 0.1% [8] - **Xylem Inc. (XYL)**: Projected revenue and earnings growth rates of 16.4% and 12.4% respectively for the current year, with a current dividend yield of 1.1% [9] - **Flowserve Corp. (FLS)**: Expected revenue and earnings growth rates of 5.8% and 26.7% respectively for the current year, with a current dividend yield of 1.8% [10] Market Dynamics - Supply-chain disruptions, particularly regarding electronic components, have improved this year, supporting growth for industrial manufacturing companies [3] - Anticipated reductions in raw material costs and a surge in e-commerce are expected to benefit the industry [3] - Companies are focusing on digitization to enhance operational productivity, product quality, and reduce costs [3] - An acquisition-based growth strategy is being employed by industry participants to expand networks and product offerings [4]

Core Viewpoint - Research Frontiers Inc. and AIT Group have introduced a retrofittable SPD-SmartGlass window system, the Thermolite RetroWAL SPD, which will be showcased at the AIA Expo 2024, marking a significant advancement in energy-efficient window technology [1][7]. Company Overview - Research Frontiers Inc. is a publicly traded technology company that specializes in patented SPD-Smart light-control film technology, allowing for instant and precise control of glass shading [8]. - AIT Group is a leading manufacturer of advanced functional glass solutions and a licensee of Research Frontiers' technology, focusing on dynamic glazing and occupant comfort applications [9]. Product Innovation - The Thermolite RetroWAL SPD system allows existing windows to be retrofitted with SPD-SmartGlass technology, providing energy efficiency and modern functionality without the need for complete window replacements [4][5]. - The SPD-Smart film technology enables users to change window tint from clear to dark at the touch of a button or through smart devices, enhancing comfort and reducing heat and glare [2][3]. Market Potential - The global smart glass market is projected to reach $124 billion by 2028, growing at a CAGR of 22.8% from 2023 to 2028, driven by architectural and mobility applications [6]. - Approximately 80% of flat glass produced globally is used in building and construction, indicating a significant opportunity for the adoption of smart glass technologies [6]. Regulatory Environment - The U.S. Federal Government's Dynamic Glass Act, passed in August 2022, offers investment tax credits of 30-50% for electrically-controlled variable tint materials, promoting the adoption of smart glass technologies [6].

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Applied Industrial Technologies (AIT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.Applied Industrial Technologies is a member ...

Core Viewpoint - Applied Industrial Technologies (AIT) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings and potential stock price increase [1][2]. Earnings Outlook - The Zacks rating upgrade reflects an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. - AIT is expected to earn $9.62 per share for the fiscal year ending June 2024, representing a year-over-year increase of 9.9% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for AIT has increased by 2.3%, indicating a positive revision trend [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with AIT positioned in the top 5% of Zacks-covered stocks due to its strong estimate revisions [4][7]. Investment Implications - The correlation between rising earnings estimates and stock price movements suggests that AIT's improving business fundamentals could lead to higher stock prices [3][6]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, highlighting the potential for AIT to outperform the market [4].

Core Insights - Several industrial products stocks are highlighted on the Zacks Rank 1 (Strong Buy) list, with 16 companies from the sector competing for recognition [1] - Three stocks, Applied Industrial Technologies, Atmus Filtration Technologies, and Belden, are particularly recommended by brokers, each receiving an average recommendation of 1.0 [1] Applied Industrial Technologies (AIT) - AIT is recognized for its engineering, design, and system integration services, with all four brokers covering the stock giving it a strong buy rating [1] - The stock is approaching its 52-week high of $201, having increased by 7% this month [1] - Annual earnings are projected to rise by 9% in fiscal 2024 and an additional 2% in FY25, reaching $9.72 per share [2] - The forward earnings multiple is 20.4X, with an average price target of $211.25 indicating an 8% upside potential [2] Atmus Filtration Technologies (ATMU) - ATMU, a manufacturer of advanced filtration products, has all six brokers rating it as a strong buy [4] - The average price target is $35.42, suggesting a 16% upside [4] - EPS is expected to decline by 2% this year but is forecasted to rebound with a 5% increase in FY25, reaching $2.38 per share [4] Belden (BDC) - Belden, which specializes in cable, connectivity, and networking products, has all five brokers rating it as a strong buy [6] - The stock has surged by 15% this month following a Q1 EPS of $1.24, surpassing the Zacks Consensus of $1.05 by 18% [6] - Annual earnings are expected to decline by 15% in FY24 but are projected to rebound with a 29% increase next year, reaching $7.47 per share [6] - The average price target is $104.60, indicating a 13% upside from current levels [6] Conclusion - The upward trend in earnings estimate revisions for Applied Industrial Technologies, Atmus Filtration Technologies, and Belden positions them as strong performers in the current quarter [7]

Manufacturing Sector Overview - The U.S. manufacturing sector is showing signs of recovery, with new orders for manufacturing goods increasing by $9.1 billion in March, representing a 1.6% month-over-month growth, consistent with consensus estimates [1] - March marked the second consecutive month of growth in factory orders, following a 1.2% increase in February [1] - Shipments rose by $1.5 billion, or 0.3%, reaching $583.3 billion, after a 1.4% increase in February [1] - New orders for manufactured durable goods increased by $7.3 billion, or 2.6%, totaling $283.3 billion, driven primarily by a $6.9 billion, or 7.8%, rise in transportation equipment orders [1] Inflation and Federal Reserve Actions - Inflation decreased from a peak of 9.1% in June 2022 to 3.5% in March 2024, leading to expectations of potential rate cuts by the Federal Reserve [2] - Federal Reserve Chairman Jerome Powell indicated that another rate hike is unlikely in the near future, with plans for three rate cuts by the end of the year [2] - Market participants anticipate the first rate cut to occur in June, which would benefit the manufacturing sector and the broader economy by alleviating price pressures [2] Investment Opportunities in Manufacturing Stocks - Five manufacturing stocks are highlighted as ideal investment opportunities: Applied Industrial Technologies, Inc. (AIT), AZZ Inc. (AZZ), AptarGroup, Inc. (ATR), Eaton Corporation plc (ETN), and Chart Industries, Inc. (GTLS) [3] - AIT is expected to have an earnings growth of 8.9% for the current year, with a Zacks Rank of 1 [4] - AZZ is projected to achieve a 6.6% earnings growth, with a Zacks Rank of 2 [4] - ATR anticipates an 11.7% earnings growth, also holding a Zacks Rank of 2 [5] - ETN is expected to see a 14.6% earnings growth, currently with a Zacks Rank of 2 [6] - GTLS is forecasted to have a significant earnings growth of 96.7%, maintaining a Zacks Rank of 2 [6]

Group 1: Reddit (RDDT) Performance - Reddit's stock gained 48.4% on its first day of trading, reaching a high of $74.90 by March 26, more than double its IPO price of $34 [1] - The launch of options trading contributed to the stock's early success, with approximately 90,000 options traded on the first day [1] - Daily options volume for Reddit stock has decreased significantly in April, dropping from 82,357 on April 1 to 32,154 on April 8 [1] Group 2: Bellring Brands (BRBR) - Bellring Brands has grown sales from $854 million in 2019 to $1.67 billion in 2023, achieving a compound annual growth rate of 18.3% [3] - The company expects revenues to grow by 12% in 2024, reaching $1.87 billion [3] - Bellring's stock trades at 46 times its trailing 12-month adjusted earnings per share and 30 times the 2024 estimate of $1.60 [3] Group 3: Applied Industrial Technologies (AIT) - Applied Industrial Technologies has appreciated by 14.9% annually since adopting its current stock symbol AIT, outperforming the S&P 500 [5] - The May 17 $195 call option has an ask price of $7.90, requiring a 4.1% down payment [6] - AIT's share price needs to increase by 3.2% over the next 38 days for the option to be considered for exercise [6] Group 4: UFP Industries (UFPI) - UFP Industries has seen its shares appreciate by 13.7% annually since going public in 1993, with a 106% increase since October 2020 [7][8] - The company expects to grow annual sales by 7% to 10% over the next five years, with an average adjusted EBITDA margin of 12.5% [8] - UFP Industries anticipates benefiting from a potential decline in interest rates later this year and into 2025 [8]

Industry Overview - The Zacks Manufacturing – General Industrial industry is experiencing growth due to the recovery in domestic and export orders for industrial products and the rise in e-commerce business [1] - Companies in this industry produce a variety of industrial equipment and provide services to sectors such as mining, oil and gas, agriculture, and transportation [2] Current Trends - Industrial production increased by 0.4% in March 2024, with manufacturing output rising by 0.5%, indicating a positive trend in manufacturing activities [3] - The ISM's manufacturing index registered 50.3% in March 2024, signaling expansion in U.S. manufacturing activity [3] - The New Order Index increased by 2.2 percentage points, suggesting a return to expansion territory for new orders [3] Supply Chain and Technological Advancements - Supply-chain disruptions are easing, particularly regarding electronic components, which is expected to support growth in 2024 [4] - Companies are focusing on digitizing operations, enhancing competitiveness through improved productivity and lower costs [4] Financial Performance and Valuation - The Zacks Manufacturing – General Industrial industry ranks 69, placing it in the top 27% of over 250 Zacks industries, indicating strong near-term prospects [6] - The industry's earnings estimates for the current year have increased by 2.7% over the past year, reflecting positive analyst sentiment [7] - The industry has outperformed both the broader sector and the S&P 500 index, appreciating by 27% compared to 23.6% and 23.5% respectively [8] Current Valuation Metrics - The industry is currently trading at a forward 12-month Price-to-Earnings (P/E) ratio of 22.02X, higher than the S&P 500's 20.75X and the sector's 18.26X [9] Notable Companies - **Applied Industrial Technologies (AIT)**: Expected to benefit from strength in various end markets, with a projected sales growth of 1-3% for fiscal 2024. The company has gained 39.3% in the past year [11] - **Chart Industries (GTLS)**: Anticipated to benefit from a record backlog and strength in key markets, with shares gaining 15.8% in the past year [12] - **Ingersoll Rand (IR)**: Positioned to benefit from a solid product portfolio and increased orders, with shares gaining 63.5% in the past year [13] - **RBC Bearings (RBC)**: Expected to gain from strength in the Aerospace segment, with shares increasing by 6.8% in the past year [14]