5 Best Manufacturing Stocks To Buy Now

In this article, we discuss 5 best manufacturing stocks to buy now. If you want to read our detailed analysis of the manufacturing sector, head directly to 12 Best Manufacturing Stocks To Buy Now. 

5. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 52

Caterpillar Inc. (NYSE:CAT) is the largest construction equipment manufacturer in the world. It is one of the best manufacturing stocks to buy. On June 14, Caterpillar Inc. (NYSE:CAT) declared a $1.30 per share quarterly dividend, an 8.3% increase from its prior dividend of $1.20. The dividend is payable on August 18, to shareholders of record on July 20. 

According to Insider Monkey’s first quarter database, 52 hedge funds were bullish on Caterpillar Inc. (NYSE:CAT), compared to 50 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 7.35 million shares worth $1.68 billion. 

Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

4. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 52

The Boeing Company (NYSE:BA) designs, manufactures, and services commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems worldwide. The Boeing Company (NYSE:BA) released its demand for commercial aircraft and services for the next 20 years on June 19, noting that 42,595 new commercial planes will be demanded by 2042 due to rising passenger traffic and airlines replacing their fleets with latest, fuel-efficient planes. The Boeing Company (NYSE:BA) is one of the best manufacturing stocks to invest in. 

According to Insider Monkey’s first quarter database, 52 hedge funds were bullish on The Boeing Company (NYSE:BA), compared to 53 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent stakeholder of the company, with 1.7 million shares worth $368.7 million. 

Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:

“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”

3. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 58

Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company that operates through Aerospace, Honeywell Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions segments. It is one of the top manufacturing stocks to buy. On April 27, Honeywell International Inc. (NASDAQ:HON) reported a Q1 non-GAAP EPS of $2.07 and a revenue of $8.86 billion, outperforming Wall Street estimates by $0.15 and $360 million, respectively. 

According to Insider Monkey’s first quarter database, 58 hedge funds were long Honeywell International Inc. (NASDAQ:HON), compared to 44 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a significant position holder in the company, with 1.3 million shares worth $254.7 million. 

Here is what ClearBridge Investments has to say about Honeywell International Inc. (NASDAQ:HON) in its Q1 2021 investor letter:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”

2. General Electric Company (NYSE:GE)

Number of Hedge Fund Holders: 59

General Electric Company (NYSE:GE) is an American multinational conglomerate that manufactures and commercializes gas and steam turbines, commercial and military aircraft engines, integrated engine components, electric power and mechanical aircraft systems, among others. It is one of the premier manufacturing stocks to invest in. On April 25, General Electric Company (NYSE:GE) reported a Q1 non-GAAP EPS of $0.27 and a revenue of $14.5 billion, outperforming Wall Street estimates by $0.13 and $1.04 billion, respectively. 

According to Insider Monkey’s first quarter database, 59 hedge funds were bullish on General Electric Company (NYSE:GE), and Chris Hohn’s TCI Fund Management is the largest stakeholder of the firm, with 26.1 million shares worth $2.5 billion. 

Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q1 2023 investor letter:

“General Electric Company (NYSE:GE) was a material contributor during the quarter. With the successful spin-off of GE HealthCare in early January, the company operates in two major markets: GE Aerospace and GE Vernova. GE Aerospace powers three out of every four commercial flights. GE Vernova helps generate 30% of the world’s electricity and has a meaningful role to play in the energy transition. The company’s service activities, which are higher margin and more resilient, represent approximately 60% of revenue and 85% of its backlog. The company reported strong fourth quarter 2022 results and management’s 2023 outlook is positive.”

1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 65

Deere & Company (NYSE:DE) manufactures and distributes different equipment worldwide, operating through Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services segments. Deere & Company (NYSE:DE) is one of the best manufacturing stocks to watch. On May 31, the company declared a $1.25 per share quarterly dividend, in line with previous. The dividend is payable on August 8, to shareholders of record on June 30. 

According to Insider Monkey’s first quarter database, 65 hedge funds were bullish on Deere & Company (NYSE:DE), compared to 63 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with a position worth $1.6 billion. 

ClearBridge Large Cap Value Strategy made the following comment about Deere & Company (NYSE:DE) in its Q4 2022 investor letter:

“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”

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