2 Manufacturing Tool Stocks to Overcome Industry Headwinds

Zacks10-25

The Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, declines in new orders and supply-chain disruptions. The shortage of ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2478595831?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/EH1fN.zYGpjc8jtW3svXQw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/0cc239f466e6f574dd1552e7b8fa1661","is_english":true,"pubTime":"2024-10-25 21:46","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2478595831","market":"us","top_or_hot":-1,"title":"2 Manufacturing Tool Stocks to Overcome Industry Headwinds","media":"Zacks","content":"<div>\n<p>The Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, declines in new orders and supply-chain disruptions. The shortage of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/2-manufacturing-tool-stocks-overcome-134600967.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Manufacturing Tool Stocks to Overcome Industry Headwinds</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Manufacturing Tool Stocks to Overcome Industry Headwinds\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-25 21:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/2-manufacturing-tool-stocks-overcome-134600967.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, declines in new orders and supply-chain disruptions. The shortage of ...</p>\n\n<a href=\"https://finance.yahoo.com/news/2-manufacturing-tool-stocks-overcome-134600967.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0225284248.USD","symbol_name":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/2-manufacturing-tool-stocks-overcome-134600967.html","article_id":"2478595831","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EH1fN.zYGpjc8jtW3svXQw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/0cc239f466e6f574dd1552e7b8fa1661"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478595831","pubTimestamp":1729863960,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, declines in new orders and supply-chain disruptions. The shortage of skilled labor in the United States creates concerns for the industry.However, industry players' emphasis on cost-control initiatives and investments in product development have been enabling them to be competitive in the market. Stanley Black & Decker, Inc. SWK and Techtronic Industries Company Limited TTNDY appear well-poised to stay afloat in challenging market conditions.Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, denting profitability. A few industry participants have been incurring higher restructuring expenses and headcount-related costs. The rise in expenses, along with a tough labor market,","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0225284248.USD":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" ACC","BK4581":"高盛持仓","SPY":"标普500ETF","OEX":"标普100","OEF":"标普100指数ETF-iShares","BK4504":"桥水持仓",".SPX":"S&P 500 Index","SDS":"两倍做空标普500ETF","LU0306807586.USD":"SCHRODER ISF GLOBAL DIVIDEND MAXIMISER \"A\" (USD) INC QF","BK4161":"工业机械","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IVV":"标普500指数ETF","SH":"标普500反向ETF","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","BK4566":"资本集团","LU0321505439.SGD":"Schroder ISF Global Dividend Maximiser A Acc SGD","LU0985481810.HKD":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" (HKD) INC M","VOO":"Vanguard标普500ETF","LU0306806265.USD":"SCHRODER ISF GLOBAL DIVIDEND MAXIMISER \"A\" ACC","LU0225771236.USD":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" (USD) INC MF","UPRO":"三倍做多标普500ETF","BK4559":"巴菲特持仓","TTNDY":"创科实业ADR","SSO":"两倍做多标普500ETF","BK4588":"碎股","BK4550":"红杉资本持仓","SWK":"美国史丹利公司","SPXU":"三倍做空标普500ETF"},"translate_title":"2只克服行业逆风的制造工具股","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TTNDY":1,"SWK":0.9,"VOO":0.74,"SPY":0.74,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"OEF":0.6,".SPX":0.6,"IVV":0.6,"ESmain":0.6},"content_text":"The Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, declines in new orders and supply-chain disruptions. The shortage of skilled labor in the United States creates concerns for the industry.\nHowever, industry players' emphasis on cost-control initiatives and investments in product development have been enabling them to be competitive in the market. Stanley Black & Decker, Inc. SWK and Techtronic Industries Company Limited TTNDY appear well-poised to stay afloat in challenging market conditions.\nAbout the Industry\nThe Zacks Manufacturing-Tools and Related Products industry comprises companies that develop and distribute hand and mechanics tools, hydraulic tools, engineered fastening systems, and heavy-lifting technology solutions. Arc-welding products, robotic-welding packages, fume-extraction equipment, oxy-fuel cutting equipment, plasma cutters, healthcare solutions, electronic security solutions and other products are also produced by some tool-makers. The highly advanced tools are used in industrial, commercial, oil and gas, mining, automotive and other industries. The providers of electronic security solutions cater to commercial, retail, government, financial and healthcare markets. Regarding international operations, some industry players provide products and services to customers in North and South America, Japan, Europe, Canada, Asia, and the Middle East.\nMajor Trends Shaping Manufacturing Tools Industry's Prospects\nWeakness in the Manufacturing Sector: Persistent weakness in the manufacturing sector has been denting industry demand. After breaking a sixteen-month contraction streak by growing in March, the manufacturing sector contracted for the sixth consecutive month in September. Per the Institute for Supply Management’s (ISM) report, in September, the Manufacturing Purchasing Manager’s Index touched 47.2%, matching the figure recorded in August. A figure less than 50% indicates a contraction in manufacturing activity. Also, the New Orders Index remained in the contraction territory for six consecutive months, registering 46.1% in September. The third quarter of 2024 recorded a slowdown in orders, with weaker-than-expected readings in the manufacturing sector.\nSupply-Chain Disruptions: Supply-chain disruptions, especially related to the availability of electronic components, have been concerning for the industry participants of late. This is evident from the latest ISM report’s Supplier Deliveries Index, which reflected slower deliveries in September. Supply-chain issues, if not controlled, might continue to raise warehouse, packaging and other logistics expenses.\nRising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, denting profitability. A few industry participants have been incurring higher restructuring expenses and headcount-related costs. The rise in expenses, along with a tough labor market, poses a threat to margins. That said, companies have been focused on cost management initiatives to mitigate cost-related challenges. These include streamlining operational structures, optimizing supply networks and implementing effective pricing policies.\nInvestments in Product Development & Innovation: Constant focus on innovation by industry players, product upgrades and the development of products to stay competitive in the market will likely drive growth. While this augurs well for the industry’s long-term growth, hefty investments in research and development often leave companies with highly leveraged balance sheets.\nZacks Industry Rank Indicates Weak Prospects\nThe Zacks Manufacturing-Tools & Related Products industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #246. This rank places it in the bottom 2% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are keeping less faith in this group's earnings growth potential. The industry’s earnings estimates for 2024 have decreased 23.5% over the past year.Despite bleak near-term prospects, we will present a couple of stocks that you may want to retain in your portfolios. However, it is worth looking at the industry’s shareholder returns and current valuation first.\nIndustry Lags Sector & S&P 500\nThe Zacks Manufacturing-Tools & Related Products industry has underperformed the sector and the S&P 500 composite index in the past year.Over this period, the industry has appreciated 4% compared with the sector and the S&P 500 index’s growth of 31.4% and 40.2%, respectively.\nOne-Year Price Performance\n\nIndustry's Current Valuation\nOn the basis of forward P/E (F12M), which is a commonly used multiple for valuing manufacturing tools and related product stocks, the industry is currently trading at 19.29X compared with the S&P 500’s 22.01X. It is also below the sector’s P/E (F12M) ratio of 20.29X.In the past five years, the industry has traded as high as 25.05X, as low as 10.98X and at the median of 18.58X, as the chart below shows:\nPrice-to-Earnings Ratio vs SP500\n\nPrice-to-Earnings Ratio vs Sector\n\n2 Manufacturing Tool Stocks to Keep a Tab on\nStanley Black: Headquartered in New Britain, CT, the company manufactures tools (power and hand tools) and related accessories and engineered fastening systems, among other items. It is benefiting from the global cost-reduction program, which is expected to aid Its bottom line and drive margins. The company expects to generate run rate savings of $1.5 billion from this program in 2024 and $2 billion in 2025. SWK’s commitment to rewarding shareholders through dividend payments adds to its appeal.Stanley Black reported better-than-expected results in the last four quarters, the earnings surprise being 20.3%, on average. The Zacks Consensus Estimate for the company’s 2024 earnings has been unchanged in the past 60 days. SWK has an estimated earnings growth rate of 188.2% for the current year. The Zacks Rank #3 (Hold) stock has gained 33.2% in the past year.  You can see the complete list of today’s Zacks #1 Rank stocks here. \nPrice and Consensus: SWK\n\nTechtronic Industries: Headquartered in Hong Kong, the company specializes in designing, manufacturing and marketing power tools, outdoor power equipment, and floorcare and cleaning products, serving markets in North America, Europe, and internationally. Techtronic Industries is benefiting from strength across the TTI Power Equipment segment, driven by solid growth in the MILWAUKEE business. Solid momentum in the floorcare and cleaning business is also expected to bolster TTNDY’s growth.In the past 60 days, This Zacks Rank #3 company’s earnings estimates have been unchanged for 2024. TTNDY has an estimated earnings growth rate of 15.8% for the current year. The stock has gained 61.6% in a year.\nPrice and Consensus: TTNDY\n\nWant 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\nStanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report\nTechtronic Industries Co. (TTNDY) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478595831"}