Manufacturing stocks are considered safe investments by most investors. Companies in this sector are known for delivering stable revenue and stock price growth over time. Many of these companies also offer investors attractive dividends.
This can be a cyclical sector that frequently leads the economy into and out of recessions. But there are several megatrends that should support revenue and earnings growth over the next decade. For example, the Infrastructure Act passed by Congress in 2022 is fueling infrastructure products that will require heavy equipment and other vital resources that companies in this sector provide.
Investors should also consider the push for U.S. companies to onshore their supply chains. Made in America sentiment may come and go, but the global pandemic and subsequent supply chain disruptions are making nimble supply chains a matter of strategic, and economic, importance for companies of all sizes.
Plus, you have to consider that geopolitical concerns will likely run hot over the next several years. This will spark growth in defense stocks which tend to be less cyclical than manufacturing stocks in general. Here are seven manufacturing stocks that can form a base for every investor's portfolio.
Click the "Continue to Slide #1" button to view the first company.
