4 Stocks to Gain From a Steady Rebound in Manufacturing Activity

Industry Overview - The U.S. manufacturing sector is experiencing a slow but steady recovery, with significant easing of price pressures over recent months, indicating a revival is gaining momentum [1] - Industrial production rose by 0.9% in December, surpassing the consensus estimate of 0.3%, while November's figures were revised from a decline of 0.1% to an increase of 0.2%, suggesting robust growth in the sector [3] - Capacity utilization for manufacturing increased by 0.4% to 76.6 in December, reflecting underlying economic strength and a robust consumer market [5] Company Insights - Alcoa Corporation (AA) is expected to see earnings growth of over 100% for the current year, with a Zacks Rank of 1, indicating strong buy potential [8] - EnerSys (ENS) anticipates earnings growth of 14.6% for the current year, with a Zacks Rank of 2, showing solid investment potential [9] - Chart Industries, Inc. (GTLS) has an expected earnings growth of 48.1% for the current year and also holds a Zacks Rank of 2, indicating favorable investment prospects [12][13] - Packaging Corporation of America (PKG) expects earnings growth of 4.4% for the current year, maintaining a Zacks Rank of 2, suggesting it is a viable investment option [14] Sector Performance - The end of The Boeing Company's strike contributed to a 6.3% increase in aerospace output, while apparel and leather output rose by 1.2% [4] - Manufacturing output increased by 0.6% in December, following a 0.4% gain in the previous month, indicating a positive trend in production [4] - The recovery in industrial production follows a period of decline in September, aided by the Federal Reserve's interest rate cuts, which have spurred demand in the manufacturing sector [6]