NEW YORK ( TheStreet) -- PACCAR (PCAR), Kennametal (KMT), Caterpillar (CAT) and Illinois Tool Works (ITW) are four manufacturing companies that reported positive quarterly earnings. On average, analysts expect their shares to rise between 12% to 17%.
The rebound in industrial activity across major economies will benefit these equipment makers in the coming months. Industrial production rose 0.8% month-over-month in December in the U.S., 1.3% in Europe, 2.7% in India, 1.5% in China and 3.1% in Japan. These increases indicated demand should rise for these mining equipment manufacturers.
According to a recent PricewaterhouseCoopers quarterly survey of manufacturing executives, almost 63% were optimistic about growth prospects in the next 12 months. This indicates a 28-point increase, compared with the prior quarter. The majority of the U.S. manufacturing companies reported higher-than-expected quarterly earnings, indicating strong demand from emerging markets.
Equipment manufacturers believe that urbanization and industrial growth in the developing and emerging economies will boost infrastructure, improve living standards and raise the demand for products and commodities.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV