Industrial Production Boosts Manufacturing Activity: 5 Picks

Industry Overview - The U.S. manufacturing sector is experiencing a rebound driven by higher demand, following a period of struggle due to slowing demand and higher borrowing rates [1] - Industrial production rose by 0.4% in March, with manufacturing output increasing by 0.5% [1] - Year-over-year production at U.S. factories increased by 0.8% in March, attributed to a 3.1% rise in motor vehicles and parts output [1] - Manufacturing accounts for 10.4% of the U.S. economy, indicating its significant role [1] - The Federal Reserve's monetary tightening campaign has led to a 525 basis point increase in interest rates to combat inflation [1] Economic Indicators - New orders for U.S.-made manufactured goods rose by 1.4% in February, signaling a boost in manufacturing activity [2] - The Institute for Supply Management's manufacturing PMI rose to 50.3 in March, marking the first reading above 50 since September 2022 [2] Company Highlights - Hubbell Incorporated (HUBB): Expected earnings growth of 7.2% for the current year, with a Zacks Rank of 2 [3] - A. O. Smith Corporation (AOS): Expected earnings growth of 7.6% for the current year, with a Zacks Rank of 2 [4] - AZZ Inc. (AZZ): Expected earnings growth of 23.9% for the current year, with a Zacks Rank of 1 [5] - Applied Industrial Technologies, Inc. (AIT): Expected earnings growth of 8.5% for the current year, with a Zacks Rank of 1 [6] - Luxfer Holdings PLC (LXFR): Expected earnings growth of 21.3% for the current year, with a Zacks Rank of 2 [6]