In this article we discuss the 5 best manufacturing stocks to buy now. If you want to read our detailed analysis of the manufacturing industry and its outlook, go to 15 Best Manufacturing Stocks To Buy Now.
5 . iRobot Corporation (NASDAQ: IRBT)
No. of Hedge Fund Holders: 22
iRobot Corporation manufactures robots used for home and commercial purposes. The company’s robots are used for cleaning & healthcare purposes, AI research and machine learning. The company is operating in one of the most futuristic markets, as the robotics industry is expected to reach $176 billion by 2025 amid an increasing demand on the back of automation. iRobot shares have gained 155% over the last 12 months. It ranks 5th on the list of 10 best manufacturing stocks to buy now.
Arrowstreet Capital owns 522,623 shares of IRBT, worth $41.9 million.
4. Simpson Manufacturing Co., Inc. (NYSE: SSD)
No. of Hedge Fund Holders: 25
California-based Simpson Manufacturing makes building material like structural connectors, anchors and related retrofitting products. The stock has gained about 22% in value over the last 12 months. In the fourth quarter, the company posted a GAAP EPS of $0.68, beating the Wall Street by $0.03. Revenue in the period jumped 12% to reach $293.9 million. In 2021, the company expects its operating margin to come in between 16.5% to 18.5%.
With a $129.4 million stake in Simpson Manufacturing Co., John Rogers’ Ariel Investments currently owns 624,907 shares of the company as of the end of the fourth quarter of 2020.
3. TPI Composites, Inc. (NASDAQ: TPIC)
No. of Hedge Fund Holders: 27
Arizona-based TPI Composites ranks 3rd in our list of 10 best manufacturing stocks to buy now. The company makes wind blades that are used in wind power and energy sectors. The company has facilities in North America, China, Turkey, Africa and the Middle East. The stock is up 124% over the last 12 months. However, the stock value recently receded after Craig Hallum downgraded it with a $63 price target, citing weak Q4 results and valuation concerns.
Bruce Emery’s hedge fund, Greenvale Capital, owns $62.8 million worth of TPI Commposites Inc. shares.
2. Trex Company, Inc. (NYSE: TREX)
No. of Hedge Fund Holders: 30
Virginia-based Trex Company manufactures wood-alternative decking and railing, porch, fencing, trim, steel deck framing and outdoor lighting products. The stock is up 84% in the last 12 months. In the fourth quarter, Trex earned $0.37 per share, beating the consensus estimate by $0.01. Revenue in the quarter increased 38% and beat expectations. In the first quarter of 2021, Trex sees revenue of $235 million to $245 million.
As of the end of the fourth quarter of 2020, Broad Bay Capital holds $107.2 million worth of TREX shares. Broad Bay Capital is followed by Montanaro Asset Management and Waratah Capital Investors with $43.3 million and $20.3 million worth of TREX shares, respectively.
Our database shows that 30 hedge funds held stakes in Trex Company Inc. at the end of December, versus the 26 funds in the third quarter.
1. Armstrong World Industries, Inc. (NYSE: AWI)
No. of Hedge Fund Holders: 31
Founded in 1891, Pennsylvania-based Armstrong World Industries is one of the best manufacturing stocks to buy now. The company designs and sells walls and ceilings. The stock has gained 17% year to date. In January, Bank of America upgraded the stock to Buy from Neutral. The bank believes the company has seen the “bottom” in 2020 amid low demand and negative sentiment. In the fourth quarter, Armstrong World posted adjusted EPS of $0.77, beating the Street forecasts by $0.10. Revenue in the period slid 3.3% but beat the Street’s forecast by $7.27 million.
Gates Capital Management currently owns 1.7 million shares of Armstrong World Industries Inc. worth $125.5 million, as of December 31, 2020. Another major stakeholder is Cantillon Capital Management, which owns $92.6 million worth of AWI shares.
A total of 31 hedge funds tracked by Insider Monkey were long AWI at the end of December 2020, compared to 30 funds a quarter earlier.
You can also take a peek at Billionaire Julian Robertson’s Top 10 Stocks and Billionaire Stan Druckenmiller’s Top 10 Stock Picks.
