Why 3M is an entry point back into industrials

01/27/2024 04:45
Why 3M is an entry point back into industrials

Industrials are currently lagging behind the broader market index despite positive returns in 2023, but is now the the time to buy back in? Zacks Investment Management Director and Client Portfolio Manager Brian Mulberry joins Yahoo Finance's Julie Hyman for the latest installment of Good Buy or Goodbye to give insight into which industrial stocks investors should consider when buying into the sector. Mulberry points to 3M (MMM) as his Good Buy, citing: an improved supply chain, potentially saving up to 38% on margins and adding back into budget sheets for potential growth; a strong cash flow position which allowed them to add back into dividends paid to shareholders, as much as $1 per share. Mulberry says RTX Corp. (RTX) is a Goodbye, pointing to foreign exchange headwinds, considering a sizable part of their private business involves Airbus (AIR.PA), the European-based company priced with euros (EURUSD=X) which can add pressure to the business considering how the US dollar is performing. In addition, the Chinese sanctions on Taiwan dampens their ability for growth. You can find more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live here. Editor's note: This article was written by Nicholas Jacobino

Industrials are currently lagging behind the broader market index despite positive returns in 2023, but is now the the time to buy back in?

Zacks Investment Management Director and Client Portfolio Manager Brian Mulberry joins Yahoo Finance's Julie Hyman for the latest installment of Good Buy or Goodbye to give insight into which industrial stocks investors should consider when buying into the sector.

Mulberry points to 3M (MMM) as his Good Buy, citing: an improved supply chain, potentially saving up to 38% on margins and adding back into budget sheets for potential growth; a strong cash flow position which allowed them to add back into dividends paid to shareholders, as much as $1 per share.

Mulberry says RTX Corp. (RTX) is a Goodbye, pointing to foreign exchange headwinds, considering a sizable part of their private business involves Airbus (AIR.PA), the European-based company priced with euros (EURUSD=X) which can add pressure to the business considering how the US dollar is performing. In addition, the Chinese sanctions on Taiwan dampens their ability for growth.

You can find more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Nicholas Jacobino

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