The Zacks Analyst Blog Alcoa, EnerSys, Chart Industries and Packaging Corp

Core Viewpoint - The U.S. manufacturing sector is experiencing a steady recovery, supported by easing price pressures and positive economic indicators, making it a favorable environment for investment in manufacturing stocks [2][4]. Manufacturing Sector Performance - The U.S. manufacturing sector closed 2024 positively, indicating a revival in activity [2]. - Industrial production rose by 0.9% in December, significantly exceeding the consensus estimate of 0.3%, with November's figures revised from a decline of 0.1% to an increase of 0.2% [5]. - Capacity utilization for manufacturing increased by 0.4% to 76.6 in December, reflecting underlying economic strength [7]. Key Stocks to Watch - Alcoa Corp. (AA): Expected earnings growth for the current year is over 100%, with a Zacks Rank of 1 [11]. - EnerSys (ENS): Anticipated earnings growth of 14.6% for the current year, with a Zacks Rank of 2 [12]. - Chart Industries, Inc. (GTLS): Expected earnings growth of 48.1% for the current year, also holding a Zacks Rank of 2 [14]. - Packaging Corp. of America (PKG): Projected earnings growth of 4.4% for the current year, with a Zacks Rank of 2 [15]. Economic Indicators - 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% [6]. - The recovery in industrial production follows a period of decline, aided by the Federal Reserve's interest rate cuts totaling 100 basis points since September [8].