Opportunity is Brewing for These Highly-Ranked Manufacturing Stocks


It’s been a rather dull month for stocks so far but opportunity continues to brew in the Zacks Manufacturing-Construction and Mining Industry which is in the top 2% of over 250 Zacks industries.

Belonging to the industrial products sector the industry is benefiting from increased construction and infrastructure-related activities.

At the moment there are several highly-ranked stocks in the Manufacturing-Construction and Mining Industry with a few holding spots on the Zacks Rank #1 (Strong Buy) list.

Caterpillar’s Historical Dominance

Starting with some of the top players in the space we will begin with Caterpillar CAT which has a reputation of providing lofty returns similar to that of big tech conglomerates.

To that point, Caterpillar’s stock is up a very respectable +17% this year and has now climbed +231% over the last decade to just trail the Nasdaq’s +263%. Caterpillar’s stock has topped the Manufacturing-Construction and Mining Markets’ +200% performance during this period with the S&P 500’s +167% trailing this industry and CAT shares.

Image Source: Zacks Investment Research

Most intriguing to investors is that Caterpillar is still seeing lucrative expansion as the world’s largest global construction and mining equipment manufacturer. Plus, shares of CAT trade reasonably at 14.1X forward earnings which is near the industry average of 13.8X and a 31% discount to the S&P 500’s 20.6X.

Zacks Investment Research
Image Source: Zacks Investment Research

Now may be an opportune time to buy Caterpillar’s stock considering CAT has largely outperformed the benchmark in the last 10 years. Furthermore, Caterpillar’s sales are forecasted to jump 12% in fiscal 2023 and rise another 3% in FY24 to $69.11 billion.

Better still, Caterpillar’s annual earnings are now projected to soar 43% this year at $19.82 per share compared to EPS of $13.84 in 2022. Fiscal 2024 earnings are projected to pop another 7% with EPS estimates soaring for both FY23 and FY24 over the last 60 days which should further propel CAT.  

Zacks Investment Research
Image Source: Zacks Investment Research

Other Standouts

Astec Industries ASTE and Terex TEX also stand out among the top-rated Manufacturing-Construction and Mining Industry. Both are becoming top players in the space with Terex stock soaring +38% YTD and Astec shares up +21%.

Their performances have topped the industry and the benchmark with Terex’s stock outperforming the Nasdaq this year as well.

Zacks Investment Research
Image Source: Zacks Investment Research

Briefly, Astec is a leading manufacturer of road equipment used in each phase of road building with Terex providing aerial platforms, cranes, and other machinery used in construction maintenance, manufacturing, and various materials management applications.

Astec’s sales are projected to rise 9% in FY23 and edge up another 4% in FY24 to $1.45 billion. Taking advantage of its industry’s booming business environment, Astec’s earnings are expected to skyrocket 162% this year at $3.23 per share versus EPS of $1.23 in 2022. Fiscal 2024 EPS is expected to expand another 12% and estimates have continued to trend higher over the last two months offering further support to Aztec’s 15X forward earnings multiple.

Zacks Investment Research
Image Source: Zacks Investment Research

Turning to Terex, sales are projected to jump 16% in FY23 to $5.21 billion compared to $4.42 billion last year. Plus, FY24 sales are expected to rise another 3%. Furthermore, earnings are anticipated at $6.95 a share this year which would be a 61% increase from EPS of $4.32 in 2022.

Fiscal 2024 earnings are forecasted to rise another 3% to $7.20 a share making Terex stock look cheap at just 8.5X forward earnings with EPS estimates noticeably higher over the last 60 days as well.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Simply put, these Zacks Manufacturing-Construction and Mining Industry stocks looked poised to outperform the broader market. Judging from the historical performance in the space this should come as no surprise to investors with Caterpillar, Astec Industries, and Terex stock all coveting a Zacks Rank #1 (Strong Buy) at the moment.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention. 

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Caterpillar Inc. (CAT) : Free Stock Analysis Report

Astec Industries, Inc. (ASTE) : Free Stock Analysis Report

Terex Corporation (TEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Visited 1 times, 1 visit(s) today

Related Article

Why Palantir Stock Is Sinking Today

Palantir (PLTR 4.30%) stock is moving lower again in Wednesday’s trading. The company’s share price was down 4.5% as of 2:50 p.m. ET despite a bullish backdrop for the broader market. The S&P 500 was up 0.7% at the same point in the session, and the Nasdaq Composite was up 1.4%. Stocks are rebounding after

Is This Rally Finally the Real Thing?

Shares of Qualcomm Inc NASDAQ: QCOM are trading around $210 after one of their most explosive rallies in recent years. Just last month, the stock traded as low as $122, but earlier this week it was up near $250. While it’s cooled slightly in the last few sessions, that’s still a rapid gain of more

Here’s What Happened After the 5 Biggest IPOs in Stock Market History

With SpaceX targeting a $2 trillion valuation at its IPO this summer and raising $75 billion in the process, it will be by far the largest public debut in market history. So it’s worth considering what happened when companies set IPO records in the past. Did the previous five largest IPOs reward Day 1 shareholders?

Is a summer stock market crash now inevitable?

Image source: Getty Images The first rule of predicting a stock market crash is never, ever predict a stock market crash. Why? Because they’re entirely unpredictable. As the world faces the biggest energy shock in its history, I’d have expected global share prices to have gone into meltdown weeks ago. But they haven’t. So why

S&P 500, Nasdaq 100 Futures Drop As April Inflation Runs Hotter Than Expected— Zoominfo, Gitlab In Focus (UPDATED)

(Editor’s note: The future prices of benchmark tracking ETFs, and the headline, the lede and the economic were updated in the story.) U.S. stock futures fell on Tuesday after Monday’s higher close. This followed President Donald Trump‘s sharp criticism of Iran’s latest response to a U.S. proposal aimed at ending the conflict, saying the ceasefire

US Stock Market Today S&P 500 Futures Rise As Inflation Jitters Persist

The Morning Bull – US Market Morning Update Wednesday, May, 13 2026 E mini S&P 500 and Nasdaq 100 futures are pointing higher this morning, even as investors digest another hot US inflation print. Headline CPI is running at 3.8% year over year and core CPI at 2.8%, with a 0.6% monthly rise in overall

Global Stocks Trading Up To 49% Below Intrinsic Value Estimates

Global markets have recently shown resilience, with U.S. equity markets rallying on the back of strong corporate earnings and a robust labor market, while European indices experienced modest gains amid easing geopolitical tensions. Despite these positive trends, certain stocks remain undervalued relative to their intrinsic value estimates, presenting potential opportunities for investors who focus on

Dow Jones Futures Fall, S&P 500 Gains As Trump Takes Big Tech Leaders To China—Nvidia, Nextpower, Red Cat In Focus

U.S. stock futures were mixed on Wednesday after Monday’s mostly lower close. Dow Jones futures fell, whereas S&P 500 and Nasdaq 100 indices were rising. This follows President Donald Trump‘s visit to China along with Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang, Tesla Inc.‘s (NASDAQ:TSLA) Elon Musk, Apple Inc.’s (NASDAQ:AAPL) Tim Cook, BlackRock Inc.‘s (NYSE:BLK) Larry

It may be time to worry like it’s 1999

A version of this story appeared in CNN Business’ Nightcap newsletter. To get it in your inbox, sign up for free here. New York —  Eye-popping investments in tech infrastructure. Lofty predictions for workforce transformation. Heavy speculation in financial markets. Is it 1999 all over again? For a handful of veteran Wall Street analysts, the dot-com

3 UK Stocks Estimated To Be Trading At Up To 49.6% Below Intrinsic Value

The United Kingdom’s stock market has been under pressure recently, with the FTSE 100 index experiencing declines due to weak trade data from China and falling commodity prices. As global economic uncertainties weigh on investor sentiment, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. Top 10 Undervalued Stocks Based

Is DraftKings Stock a Buy on Super-App Potential?

DraftKings (DKNG +0.51%) is another former highflier that has been pushed into the presumed loser’s basket by investors. Instead of artificial intelligence (AI) being the culprit, though, the online sports betting stock is a victim of the rise of prediction markets. The stock has now lost more than a third of its value over the

1 Dividend ETF Quietly Outperforming the Market Right Now

It has been a decent start to the year for the S&P 500, up 7% as of Tuesday. Most of those gains have come since March 30 (it’s up over 15% since then), but it’s nice to have the index flirting with all-time highs again instead of approaching correction territory. Although the S&P 500 and

Investors Pull in on Chip Stocks After Hot Inflation: Stock Market Today

(Image credit: Getty Images) All three main equity indexes opened lower after the hottest consumer inflation report since May 2023 seemed to burn all hope for lower interest rates anytime soon. But blue chip stocks lifted the oldest of the benchmarks into the green late in a generally “risk-off” trading session. The April CPI report

Top Global Dividend Stocks For May 2026

As global markets experience a rally driven by robust corporate earnings and the resilience of the U.S. labor market, investors are keenly observing how these dynamics influence dividend stocks. With technology sectors leading gains and geopolitical tensions easing in Europe, identifying dividend stocks that offer stability and growth potential is increasingly important in today’s economic

Why CVS Stock Topped the Market on Tuesday

Ubiquitous American pharmacy operator CVS Health (CVS +3.18%) also had a strong presence on the stock market on Tuesday. That’s because its shares traded in positive territory, rising more than 3% in contrast to the slumping S&P 500 index. New and positive notes from analysts tracking the company helped put some wind in its sails.

Micron flashes investors rare technical signal

Earlier on May 12, I wrote about SanDisk (SNDK) hitting 80 relative strength index, or RSI, one of the most extreme overbought readings in the stock market. The AI memory trade, I noted, was running at a pace that rarely ends quietly. Then Micron (MU) showed up with its own flashing signal too. RSI on

3 Stocks That Could Be Undervalued Opportunities

As global markets experience a mix of resilience and volatility, with U.S. equity markets rallying on strong corporate earnings and European indices facing pressure from geopolitical tensions, investors are keenly observing potential opportunities. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on favorable market conditions, as these stocks often

0
Would love your thoughts, please comment.x
()
x