The 7 Best Manufacturing Stocks to Buy for 2023
There are lots of reasons to find the best manufacturing stocks to buy in 2023. But the biggest in my opinion is that they are great alternatives to tech stocks that have been so badly beaten in recent weeks.
Tech stocks are facing plenty of headwinds as the industry downsizes, correcting the over-hiring committed during and following the coronavirus pandemic. Tech stocks also still have plenty of concerns coming out of Washington, where lawmakers have long made Big Tech a favorite target.
Manufacturing stocks may be a little more boring, but they also provide solid growth and stability. While some on this list may not be household names, that doesn’t matter to my Portfolio Grader tool. The Portfolio Grader evaluates stocks based on their earnings history, analyst sentiment, buying momentum, performance and other qualitative measurements. Then it ranks the stocks on an “A” through “F” scale.
Here are seven manufacturing stocks to buy that are getting good marks with the Portfolio Grader now.
Sunrun (NASDAQ:RUN) is a renewable energy company that’s involved in battery storage and photovoltaic solar energy systems, which use solar radiation to produce electricity.
Both of those spaces are appealing for investors now. Many countries are looking for cleaner energy options out of concern for global climate change.
Russia’s invasion of Ukraine and the challenges European nations have since had in supplying power to its citizens are making it clear how important it is to have control of the energy supply.
Those factors are expected to help push global renewable power capacity by 2,400 gigawatts from 2022 to 2027, according to Renewables 2022. If that doesn’t sound like a lot, then consider this – 2,400 gigawatts would power all of China.
Sunrun stock, which is up 13% over the last six months, is already starting to show some serious potential. Earnings for the third quarter included revenue of $631.91 million versus analysts’ expectations for $568.63 million. Earnings per share was 96 cents – an amazing accomplishment considering the Street was expecting a loss of 7 cents per share EPS.
RUN stock has a “B” rating in the Portfolio Grader.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) is one of the best large-cap names in the market today. As an aerospace and defense conglomerate, Lockheed manufactures a variety of weapons and defense systems, including missiles used by Patriot missile-defense systems, Black Hawk helicopters and F-16, F-22 and F-35 fighters.
The company will continue to profit from the $1.7 trillion omnibus package signed into law that funds the government through much of 2023. It included $858 billion for the Pentagon and related programs.
Lockheed Martin posted revenue of $18.99 billion in the fourth quarter, which topped analysts’ expectations for $18.26 billion. Earnings per share came in at $7.79, better than the $7.39 predicted by analysts. It also pays a quarterly dividend of $3 per share, giving it a 2.6% yield.
LMT stock, which is up 19% over the last year, has “B” rating in the Portfolio Grader.
Icahn Enterprises (IEP)
Icahn Enterprises (NASDAQ:IEP) is a conglomerate owned by famous investor Carl Icahn. It operates in investments, energy, automotive, food packaging, real estate, home fashion and the pharmaceutical sectors.
As an activist investor, Icahn looks for struggling companies and purchases either stock or debt in order to gain a foothold. It then engages in “activist strategies” that can include confronting the board, proxy fights, tender offers or even taking control of companies.
In short, investing in Icahn is a good way of investing in a lot of companies that have potential, but aren’t being managed well – at least according to Icahn portfolio managers.
While Icahn stock goes through dips and valleys, the stock price is roughly the same as it was six months ago. But IEP also pays a huge 14.9% dividend yield, and that also helps push it to a “B” rating in the Portfolio Grader.
Mueller Industries (MLI)
As a producer of copper, copper alloy, brass, aluminum and plastic coils, conduit and other products, Mueller Industries (NYSE:MLI) has a firm foothold in the industrial space.
It has a broad footprint, selling products in North America, Europe, Asia and the Middle East.
What’s good about Mueller is that nations like the U.S. are creating as many manufacturing jobs as possible to not only keep unemployment down but to help drive the economy’s recovery. Manufacturing doesn’t happen without the raw products that Mueller creates.
MLI stock is up 27% in the last year and has a “B” rating in the Portfolio Grader.
Olink Holding (OLK)
Swedish proteomics company Olink Holding (NASDAQ:OLK) is involved in biotech research. The stock is down 21% in the last month, primarily because it held a public offering for 5.8 million American Depository Shares of Olink stock at $20 per share. Following the price drop, shares are holding right around that level now.
But when you back up and look at the bigger picture, you see that this is a company whose stock has been on a consistent rise. And even after slipping back to $20, it’s still up 13% from a year ago.
Olink is marketing a technology platform that it says will allow researchers to perform large-scale analysis of thousands of proteins at the same time, all from less than a drop of blood.
It’s potentially a helpful technology if the company can come through with its promises. But for now, OLK stock has a “B” rating in the Portfolio Grader.
American Lithium (AMLI)
There are a few topics that can make investors take notice as quickly as lithium. It’s a critical component for making electric vehicles and other battery products, and prices continue to be high. American Lithium (NASDAQ:AMLI) has assets in Nevada and also in Peru (the latter being the sixth-largest lithium deposit in the world).
American Lithium has also recently being trading for the first time on the Nasdaq exchange, rather than on over-the-counter markets. That change is a good one for investors, as being on a major exchange will require American Lithium to provide more information through its regular reporting to regulators.
AMLI stock is up 20% over the last year and has a “B” rating in the Portfolio Grader.
Agilent Technologies (A)
Agilent Technologies (NYSE:A) works in the life sciences, diagnostics and applied chemical markets space. The California company provides a host of technology platforms for analytical laboratories and for clinical and routine diagnostics markets.
The company also provides lab management services and has worked to improve digital lab instrumentation and technology to help improve efficiency.
Earnings for the third quarter included revenue of $1.85 billion, which topped analysts’ expectations for $1.76 billion. Earnings per share of $1.53 were better than the $1.39 EPS that the Street projected.
A stock has a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier has positions in LMT and MLI. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.