U.S. manufacturing output witnessed a marginal dip last month amid the Fed’s tightening monetary policy. However, overall capacity utilization for the industrial sector rose to…
79.0% from 78.9% in April. Andrew Hunter, the senior U.S. economist at Capital Economics, said, “There is still little in activity data to suggest a recession is on the horizon.”
Additionally, overwhelming demand and the Biden administration’s lucrative investments, like the recently declared $1.30 million for boosting industrial output in Arkansas, are expected to drive growth in the industry.
Moreover, bolstered by rapid technological advancements, the global smart manufacturing market is projected to grow at a CAGR of 13.4% from 2022 to 2030.
Thus, fundamentally sound manufacturing stocks Vishay Precision Group, Inc. (VPG), Core Molding Technologies, Inc. (CMT), Hillenbrand, Inc. (HI), and Mueller Industries, Inc. (MLI), which are rated ‘Strong Buy’ in our POWR Ratings system, could be ideal additions to your portfolio.
Vishay Precision Group, Inc. (VPG)
VPG designs, manufactures, and markets specialized sensors, weighing solutions, and measurement systems in the United States, Israel, the United Kingdom, the rest of Europe, Asia, and Canada. It operates through three segments- Sensors; Weighing Solutions; and Measurement Systems.
On May 9, 2022, Ziv Shoshani, VPG’s CEO, said, “With our strong balance sheet and cash flow, we continue to invest in our organic growth initiatives, as well as to look for value-creating acquisitions to add to our platform.”
For the first quarter ended April 2, 2022, VPG’s net revenues increased 24.2% year-over-year to $87.67 million. Its adjusted non-GAAP net earnings came in at $6.65 million, up 59.9% year-over-year, while its non-GAAP adjusted EPS came in at $0.49, up 58.1% year-over-year.
Analysts expect VPG’s revenue to be $360.90 million in 2022, representing a 13.5% year-over-year increase. The company’s EPS is expected to grow 16% per annum for the next five years. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. VPG’s shares have gained 2.2% intraday to close the last trading session at $29.03.
VPG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
VPG has an A grade for Sentiment and a B grade for Growth, Value, Stability, and Quality. It is ranked first among 36 stocks in the A-rated Industrial – Manufacturing industry. Click here to see the additional POWR Ratings for Momentum for VPG.
Core Molding Technologies, Inc. (CMT)
CMT and its subsidiaries operate as molders of thermoplastic and thermoset structural products. It offers a wide range of manufacturing processes and is a leading engineered materials company specializing in molded structural products, principally in building products, utilities, transportation, and power sports industries.
On May 10, 2022, David Duvall, CMT’s President, and CEO, said, “We have increased our 2022 capital expenditures by approximately $5 million, to $20 million, to maximize our existing square footage with the addition of three new presses in our direct long fiber and structural foam processes, as well as robotic automation of three presses.”
He added, “These investments will increase capacity, as well as efficiencies, increase throughput, and leverage our labor to drive immediate revenue.”
CMT’s total net sales increased 24.4% year-over-year to $90.59 million for the first quarter ended March 31, 2022. Its net income came in at $3.86 million, up 11.8% year-over-year, while its EPS came in at $0.46, up 12.2% year-over-year. Moreover…
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