While investors are worried about the economic recovery due to the emergence of the COVID-19 omicron variant and inflationary pressures, the industrial machinery sector has been attracting investors' attention thanks to President Biden’s recently passed infrastructure bill. So, ABB (ABB) and 3M (MMM) should benefit. But which of these two stocks is a better buy now? Read more to find out.Headquartered in Zurich, Switzerland, ABB Ltd (ABB) manufactures and sells electrification, industrial automation, and robotics and motion products to customers in utilities, industry, and transport, and infrastructure worldwide. In comparison, 3M Company (NYSE:MMM) in St. Paul, Minn., develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer.
The resurgence of COVID-19 cases and rising concerns over its highly transmissible omicron variant have cast a pall over the global economic recovery. In addition, high inflation is keeping the market volatile. However, the continuing vaccination drive and supportive fiscal and monetary policies have boosted the industrial machinery sector’s growth. Moreover, the $1 trillion infrastructure bill, which was passed on November 15, and increasing innovation in the industry, are expected to help the sector grow significantly in the coming months. So, both ABB and MMM should benefit.
ABB’s stock has gained 34.8% in price over the past year, while MMM has returned 3.8%. Also, ABB’s 29.7% gains year-to-date are significantly higher than MMM’s 1% returns. Furthermore, ABB is the clear winner with 5% gains versus MMM’s negative returns in terms of the past months’ performance.