Are the Stars Aligned for Companies That Actually Make Stuff?
Real Trade Weighted US Dollar Index: Broad data by YCharts
As the chart above suggests, conditions are ripe for earnings gains at big U.S. manufacturing companies. The cheap dollar eases the way for exports. And the recession added yet again to factories’ productivity, with companies learning to do more with less.
Lots of investors have seen this coming, so manufacturing stocks – General Electric (GE), Emerson Electric (EMR), Rockwell Automation (ROK), Danaher (DHR) -- aren’t super cheap.
GE PE Ratio data by YCharts
But if the economy keeps staggering ahead, rather than sinking back into the doldrums, these companies – and other manufacturing stocks – could have considerably more room to run.
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