Manufacturing activities are expected to increase with continuing progress on the vaccination front and the reopening of the economy. Thus, we think it could be wise to buy the dip in the following fundamentally sound manufacturing stocks: Timken Company (NYSE:TKR), Hillenbrand (NYSE:HI), Johnson Electric (JEHLY), and Vishay Precision Group (NYSE:VPG). Let’s discuss these names.Even though the economy is gradually recovering, high material prices and supply chain issues continue to impact the manufacturing industry. According to Trading Economics, the IHS Markit US Manufacturing PMI came in at 59.2 in October 2021, down slightly from 60.7 in September 2021.
However, rapid vaccinations are helping manufacturers return to full operational capacity. Ryan Sweet, a senior economist at Moody's (NYSE:MCO) Corporation’s (MCO) Moody’s Analytics, said, “Factory orders continue to climb, a good sign for manufacturing.”
Against this backdrop, we think it could be wise to scoop quality manufacturing stocks The Timken Company (TKR), Hillenbrand, Inc. (HI), Johnson Electric Holdings Limited (JEHLY), and Vishay Precision Group, Inc. (VPG). They are currently trading below their 52-week price highs but have significant upside potential.