The industrial sector has made a remarkable recovery over the past few months, benefiting from the rising aggregate demand with the economy’s reopening. Because this trend will likely continue, we think relatively undervalued stocks AGCO Corporation (AGCO), Oshkosh (NYSE:OSK), ManpowerGroup (NYSE:MAN), and Terex (NYSE:TEX), each with stable growth prospects, should be valuable additions to one’s portfolio now. So, let’s pore over these names.The U.S economy is recovering at a faster-than-expected pace, aided by substantial federal stimulus and rising consumer demand. As the economy gradually reopens, the industrial sector is expanding its operational capabilities, snapping out of its pandemic-driven slump.
U.S Industrial production rose 6.6 % year-over-year in July 2021, following an increase of 9.9% year-over-year in June. Furthermore, President Biden’s infrastructure plan is expected to drive the sector’s growth further.
Given the sector’s robust growth prospects, we believe fundamentally sound industrial stocks, AGCO Corporation (AGCO), Oshkosh Corporation (OSK), ManpowerGroup Inc. (MAN), and Terex Corporation (TEX), which look undervalued at their current price levels, should be solid bets now.