Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Atkore International Group, Global Brass and Copper Holdings, Caterpillar and DXP Enterprises

Read MoreHide Full Article

For Immediate Release

Chicago, IL – October 3, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Atkore International Group Inc. (ATKR - Free Report) , Global Brass and Copper Holdings, Inc. , Caterpillar Inc. (CAT - Free Report) and DXP Enterprises, Inc. (DXPE - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

ISM Manufacturing Index Gains for 113th Month: 4 Top Picks

Per the latest report from the Institute for Supply Management (ISM), its manufacturing index, for the month of September, increased for the 113th month on the trot.

Such an increase was achieved on the back of robust demand. Despite trade war remaining a concern for factories, the ISM stated that manufacturing activities have been improving steadily, which point toward a resilient and burgeoning economy. Under such circumstances, betting on stocks from the manufacturing sector seems prudent.

Robust Demand Propels Manufacturing Activity

The ISM Manufacturing Index increased to 59.8% last month, in line with the consensus estimate. Although the reading came in lower than 61.3% in August, a level above 50% implies that manufacturing is expanding.

The fall in the metric can therefore be deemed momentary as it stems from concerns related to tariffs. What should rather be noted is that industrial output remained strong in the month as business houses raised spending on machinery and equipment. Further, healthy domestic demand on the back of steadily rising wages, low tax rates and robust labor market conditions kept the sector afloat.

Other Factors Supporting Growth

The Production Index surged 63.9% last month, increasing 0.6 percentage points from August. Further, the Employment Index increased to 58.8% in September, registering a 0.3 percentage point increase from August. This was its highest reading since February.

Further, the New Export Orders Index gained 56% in September, an increase of 0.8 percentage points from August. This was the 31st consecutive month of gains for the metric. Finally, the New Orders Index fell to 61.8% last month.

Of the 18 manufacturing industries which were surveyed, 15 reported growth. Such industries include textile mills, miscellaneous manufacturing, plastics & rubber products, computer & electronic products, food, beverage & tobacco products, machinery, apparel, leather & allied products and paper products.

4 Hot Choices

The measure of economic activity in the manufacturing sector, the ISM Manufacturing Index remained strong in the month of September. The gains were powered by robust domestic demands, high wages and lower taxes. Manufacturing constitutes a significant portion of the U.S. economy and a burgeoning sector implies healthy economic growth.

In this context, we have selected four manufacturing stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Atkore International Group Inc. manufactures and distributes electrical raceway products.

The company is based out of Harvey, IL and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 92.61%. The Zacks Consensus Estimate for the current year has improved 11.4% over the past 60 days.

Global Brass and Copper Holdings, Inc. is a converter, fabricator, distributor and processor of copper and brass products primarily in North America.

The Zacks Rank #1 company is based out of Schaumburg, IL and has an expected earnings growth rate of 14.75% for the current year. The Zacks Consensus Estimate for the current year has improved 6.3% over the past 60 days.

Caterpillar Inc. manufactures and sells mining and construction equipment, natural gas engines, diesel-electric locomotives and other related products in the market.

This Deerfield, IL based company has a Zacks Rank #1. The company has an expected earnings growth rate of 69.27% for the current year. The Zacks Consensus Estimate for the current year has improved 0.6% over the past 60 days.

DXP Enterprises, Inc. is a distributor of products and services in the United States, Canada, Mexico and Dubai that add value and provide cost-saving solutions to industrial customers. 

This Zacks Rank #1 company is based out of Houston, TX. The expected earnings growth rate for the current year is 74.42%. The Zacks Consensus Estimate for the current year has improved 41.5% over the past 60 days.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Caterpillar Inc. (CAT) - free report >>

DXP Enterprises, Inc. (DXPE) - free report >>

Atkore Inc. (ATKR) - free report >>