5 Manufacturing Stocks Experiencing Rising Demand
Mad Money host Jim Cramer recently identified 5 manufacturing stocks that are experiencing rising demand for their products.
Honeywell produces auto parts, heating and cooling systems, aerospace equipment and energy saving devices. Over the past 9 years, the company has successfully changed its culture, reduced costs and refocused on generating profits. Honeywell is tracking ahead of their own 5-year growth projections and is riding strong secular growth trends.
Cummins is a huge player in the truck industry and their stock has been on fire lately. Cramer believes the company will continue to see strong growth as companies replace their current trucks and meet the new fuel emissions standards. The company recently reported a 70% increase in domestic sales.
Dupont is a chemical stock with a 200-year history and a 3 percent dividend yield. The company has a 5-year plan to grow earnings by 12% annually and to grow their percentage of sales from emerging markets to 36% from 32%. Dupont is expensive at its current level, but any pullback could be a buying opportunity for new investors.
PPG Industries is a great play on increasing demand in Asia. The company has experienced 5x growth in Asia over the last 10 years and now generate 58% of their sales from international markets. The stock is also a true dividend aristocrat, having raised their dividend for 40 consecutive years.
Cramer believes that Ford is the greatest comeback story in history. Just a few short years ago, many believed the company was as good as dead. Now Ford is taking market share and has seen their stock price climb 450% in the past two years.
Ford plans to increase global sales by 50% by 2014 and a third of those sales are expected to come from emerging markets. Falling unemployment should boost domestic demand which will drive Ford’s earnings higher.