According to J.P.Morgan Global Manufacturing PMI data, manufacturing production and new orders rose for the fourteenth successive month in August, indicating improved health in the…
manufacturing sector. Moreover, as material and labor shortages and supply chain disruptions start to ease with a drop in COVID-19 cases, production capacities should start improving. The manufacturing production in the United States increased 5.9% year-over-year in August 2021.
A substantial increase in new orders as economies worldwide recover, and continued investments in digital initiatives across production processes and supply networks should help the manufacturing industry regain momentum.
Therefore, fundamentally sound manufacturing stocks such as TE Connectivity Ltd. (TEL – Get Rating), Mueller Industries, Inc. (MLI – Get Rating), and Tredegar Corporation (TG – Get Rating) could be solid bets now. They have solid growth attributes and are expected to continue gaining in the coming months.
Based in Schaffhausen, Switzerland, TEL is a connectivity and sensor solutions provider. The company provides solutions to power electric vehicles, aircraft, digital factories, and smart homes. It operates through three segments, Transportation Solutions; Industrial Solutions; and Communications Solutions.
Last month, TEL announced that its subsidiary, Tyco Electronics Group S.A., has called for par call redemption of all of its outstanding Senior Notes due February 3, 2022. The redemption price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed.
TEL’s net sales increased 50.9% year-over-year to $3.85 billion for the fiscal third quarter that ended June 25, 2021. The company’s gross margin grew 79.3% from the year-ago value to $1.27 billion. Its operating income rose 432.8% from the prior-year quarter to $714 million. Also, the company’s net income came in at $580 million, compared to a net loss of $41 million in the fiscal third quarter of 2020.
Analysts expect TEL’s revenue for the fiscal year 2022 to be $15.74 billion, representing a 5.6% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to grow 8.2% next year. Its stock price has increased 17.1% over the past nine months and 43.8% over the past year.
TEL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, which equates to a Buy rating in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Also, the stock has a B grade for Value and Growth. We’ve also graded TEL for Sentiment, Stability, Momentum, and Quality. Click here to access all of TEL’s ratings. TEL is ranked #5 out of 44 stocks in the A-rated Industrial – Manufacturing industry.
MLI is a manufacturer of copper, brass, aluminum, and plastic products. The company’s products include copper tube and fittings, line sets, brass and copper alloy rod, bar, refrigeration valves, and fittings, fabricated tubular products, and various other plumbing specialty products. Its principal business segments include Piping Systems; Climate Products; and Industrial Metals.
During the second quarter that ended June 26, 2021, MLI’s net sales increased 102.5% year-over-year to $1.01 billion. The company’s operating income grew 201.8% from the year-ago value to $157.81 million. Its net income rose 289.3% from the prior-year quarter to $108.83 million. Also, the company’s EPS increased…
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