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U.S. manufacturing industry stands on the line of prosperity for five consecutive months,these two stocks deserve attent

2020-11-02 00:53:23

VNSMART- in the remaining days of 2020, investors still cannot hope that the new crown epidemic will be fundamentally alleviated. Apart from the continuous increase in confirmed cases that cannot be suppressed in Europe and the United States, it seems that it is difficult to launch vaccines within this year.The United States and the global economy have been devastated in the past eight months.

However, what surprised the market is that the US manufacturing industry seems to have ignored the recent rebound in the epidemic and is moving in the direction of a V-shaped recovery.According to the ISM Manufacturing Index of the American Institute of Supply Management, the US manufacturing index in September has achieved an upward trend for the fifth consecutive month, and it has reached the 50-year mark in the three months of the third quarter, which shows that the manufacturing industry The activity is exaggerated.The index hit an 11-year low in April.

It is worth noting that the White House and the Democratic Party have recently been deadlocked and unable to reach an agreement on the second round of stimulus bills, and the first round of stimulus has been terminated at the end of July. In other word, in such time, the manufacturing industry has also expanded.Prior to this, the Federal Reserve kept interest rates low and its lending facilities to ordinary people and small businesses have jointly promoted this round of recovery in the manufacturing industry.

In the U.S. stock market, many companies are in full swing to release third-quarter earnings, and among these, five manufacturing stocks will announce third-quarter earnings this week, including Stanley Black & Decker (NYSE: SWK), Caterpillar Company (NYSE:CAT) and 3M Company (NYSE:MMM) etc.

 

1.Caterpillar Company

Earnings announcement date: Tuesday, October 27th, before US stocks

Expected revenue: US$9.71 billion

Expected earnings per share: $1.17

Caterpillar Company (NYSE:CAT)

Caterpillar (NYSE: CAT) is one of the most symbolic stocks in the manufacturing industry. As a traditional manufacturing company, it is highly cyclical and closely related to the global economic development. The demand for the companys equipment is in the market increases when conditions are good, but declines during periods of economic uncertainty.With the bright market prospects and economic recovery in the next few months, Caterpillar's market volatility may further increase.

According to the market information of Investing.com, Caterpillar's stock price fell after being hit by the epidemic at the beginning of the year, and then gradually recovered. It has risen by about 10.51% so far this year, and closed at $163.20 as of Monday.




The epidemic crisis has indeed brought an impact to Caterpillars business in many divisions, but the company still maintains a diversified business model, and it still maintains strong competitiveness in the mining, energy, and transportation industries.

At the same time, what needs attention is that Caterpillar has a good dividend payout record during the market turmoil, maintaining a considerable dividend rate of 2.75%.Although the stock price fell for a while this year, this gain is still expected to be retained.

Caterpillar is not necessarily the best investment target at the moment, but it is a safer target. Investors can bet on low prices.

 

23M company

Earnings announcement date: Tuesday, October 27th, before US stocks

Expected revenue: US$8.31 billion

Expected earnings per share: $2.26

For the old investors of 3M Corporation (NYSE: MMM), the company's problems may not be just a problem of the epidemic crisis.In the past three years, the stock market value has been compressed by a third, and the current stock price is close to a three-year low. According to the market data of Investing.com, the company has fallen 5.82% this year and closed at $166.16 as of Monday.





It is also a manufacturing sector stock that is sensitive to economic prospects, and 3M has always been "not able to move". However, recently, some analysts on Wall Street believe that although the economic outlook is still gloomy, 3M can become a strong buying target for investors, because manufacturing stocks are often undervalued because of cyclical factors. Once the economy recovers, 3M is expected to lead the way Economic recovery.

3M is also quite confident in its own "resurrection". On September 15, the companys third-quarter performance outlook showed that its estimated third-quarter sales are expected to remain between US$8.2-8.3 billion, even higher than the same period last year,which is 8 billion US dollars without the influence of the epidemic.


Secondly, the stock's impressive dividend yield is also one of the powerful persuasive factors for investors to pay attention to this stock.Earlier this year, 3M's dividend yield was 4%. Since then, it has fallen to 3.67%. Although this figure is low, it is still much better than the S&P 500, which has an overall yield of only 1.9%. 3M is also known for its high yield, which makes the stock a worthy investment target for dividend investors.

3M is one of the leaders in the manufacturing industry, and its product innovation and quality are trustworthy, but it needs more patience from investors before returns begin to flow in.


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