5 Industrial Products Stocks to Buy on Jump in Factory Orders

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]