Stocks to buy
  • Manufacturing stocks are solid investment havens as tech stocks flail about.
  • Encore Wire (WIRE): produces copper wire and cable, which is fundamental to many industries from telecom to housing to infrastructure.
  • Cornerstone Building Brands (CNR): is an exterior building supply manufacturer that sells to both commercial and residential sectors.
  • Carlisle Cos (CSL): has been making engineered products that go into original equipment or aftermarket finished products.
  • Titan International (TWI): has been a key player in the wheels, tires, and undercarriages for industrial vehicles since 1890.
  • Vidler Water Resources (VWTR): is strategically located where there’s fracking and limited resources to water.
  • Tecnoglass (TGLS): designs and manufactures architectural and commercial glass for in the U.S. and Latin America.
  • Zurn Water Solutions (ZWS): focuses on water control and distribution systems and has been in the business since 1891.
Source: Pixel B / Shutterstock.com

One thing that’s certain right now is that the stocks that got us this far aren’t likely to be the stocks worth buying. As the economy shifts, manufacturing stocks are looking much better than their tech-heavy rivals.

And moving forward, tech stocks may face more headwinds as the era of cheap, easy money dissipates and solid, dependable earnings and revenue come back into fashion.

Granted it has been a while since “boring” companies that make real tangible things have been in favor for more than a minute. But they’re back and will remain back now that unfettered growth with little to support the sky-high valuations of these stocks is no longer cool.

What’s more, the stocks of the companies listed here aren’t the big-cap stocks with broad market recognition. This isn’t the kind of market where being a headliner is a good thing. This is a market where small, quality companies that have proven their economic resilience will prevail.

They may not be sexy, but they’ll be there making money quietly and consistently. Here are the best manufacturing stocks to buy and let whirl away in your portfolio:

WIRE Encore Wire $113.92
CNR Cornerstone Building Brands $24.38
CSL Carlisle Cos $263.64
TWI Titan International $14.40
VWTR Vidler Water Resources $15.75
TGLS Tecnoglass $23.64
ZWS Zurn Water Solutions $31.60

Encore Wire (WIRE)

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Copper wire. No, it’s certainly not going to raise many heartbeats above resting, but when you think of a product that’s fundamental to almost every sector in the economy — construction, vehicles, electronics, telecom, etc. — it’s copper wire.

Encore Wire (NASDAQ:WIRE) has a $2 billion market capitalization and sells directly to electrical suppliers, not the public. And all it does is sell copper wire. It isn’t diversified into a lot of other stuff. It has a variety of copper cable available for various industries and that’s it.

But that’s all it has to be, since copper wiring is a fundamental building block of the economy. And its relatively small size means any growth is good for WIRE.

WIRE stock has been hit during the current downturn; it has lost 28% year-to-date. But it’s still up 42% in the past 12 months and trades at a price-to-earnings (PE) ratio of below 4.

This stock has an “A” rating in my Portfolio Grader.

Cornerstone Building Brands (CNR)

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One of the themes in these manufacturing stocks is they circle around three industries. The first is housing and buildings. And Cornerstone Building Brands (NYSE:CNR) is in this group.

Granted, WIRE crosses over a number of groups, but building supplies are certainly one key sector. And where WIRE focused on essentially one core product, CNR focuses on one sector — residential and commercial buildings.

Now those two markets don’t always march in lockstep. And some of its products are for the remodeling and repair market, not just new construction. But the larger point is, CNR is a reliable winner when it comes to growth in the real estate sector. And whether people are buying new homes or fixing the one they have, CNR is likely involved.

CNR stock has a market cap of $3 billion, so it’s a niche player but well established. And the stock has gained 40% year-to-date, and 72% in the past 12 months. Yet it still trades at a PE ratio below 5.

This stock has an “A” rating in my Portfolio Grader.

Carlisle Cos (CSL)

Source: Shutterstock

While Carlisle Cos (NYSE:CSL) has been around since 1917, it went public in the 1960s. But don’t be surprised if the name doesn’t ring a bell. CSL has been a construction material and equipment supplier for decades.

Yet in the 1990s it went on a wave of acquisitions to expand its competitive footing, buying out a number of leading competitors in strategic niche markets. CSL has a market cap of more than $12 billion these days, so it was very effective broadening its base.

Today, it sells everything from disc brakes to powders and sealants to roofing membranes. By this point, CSL has its hands in a lot of industrial processes and is a key provider to many industries that are at the heart of the “real” economy.

The stock is treading water year-to-date, but it has gained 29% in the past 12 months.

This stock has an “A” rating in my Portfolio Grader.

Titan International (TWI)

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Along the line of core providers to foundational industries, Titan International (NYSE:TWI) is one to be included. This company started in the U.S. heartland in 1890. And to this day it focuses on a very particular sector, with a global reach.

TWI sells wheels and tires for industrial equipment, from earth movers to farm machinery, to every other type of motorized equipment in between. Also, in Latin America and Russia it sells light truck tires, although the Russian market is no longer viable.

But that shouldn’t disturb the demand for this equipment in TWI’s other markets. Both Europe and the U.S. have significant infrastructure stimulus spending that will take many years to unwind, as well as a great deal of assistance that will be needed in Ukraine. TWI also produces tires for the military.

The thing is, with its broad base of customers and its longevity, TWI only has a market cap of $880 million. But you don’t have to worry about chasing the stock since it’s trading at a PE ratio of 17, although the TWI has gained 25% year-to-date.

This stock has a “B” rating in my Portfolio Grader.

Vidler Water Resources (VWTR)

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Water is like real estate, they’re not making any more of it. And that’s where Vidler Water Resources (NASDAQ:VWTR) fits in. The company supplies water to developers, farmers, energy resources firms, and other that need water in the dry Western places of the U.S. (Nevada, California, Idaho, Colorado, New Mexico, Arizona). Some of those places are also where there are significant shale deposits.

Fracking for oil in shale deposit is a water heavy operation and in many cases west of the Mississippi, those shales are on very arid land. And if you’re not following any of the news out West, there’s a significant drought that happening once again in California and neighboring states. That’s trouble for the agriculture industry as well as simply moving potable water to where it’s needed for the population.

This all means VWTR is in demand on a number of fronts. But bear in mind, VWTR only has a market cap of $290 million, so it will be volatile. However, that volatility is to the upside right now. VWTR has gained 32% year-to-date and 75% in the past 12 months. Yet it trades at a PE ratio of below 9.

This stock has an “A” rating in my Portfolio Grader.

Tecnoglass (TGLS)

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There’s a Zen saying that the utility of a vase is the emptiness inside. In that vein, the power of building is the ability to let the light and the outside world in while be safe inside. And that’s where glass comes in.

Tecnoglass (NASDAQ:TGLS) is a leading commercial and architectural glass company that operates in the U.S. and Latin America. Its products add functionality to numerous office buildings, administrative buildings, hotels, hospitals, and others.

It has glass products for every occasion. It offers insulating glass, laminated glass, monolithic glass, bent glass, you name it. That also means if a building owner wants to upgrade their glass to something more efficient for a tax break, TGLS can do the job as well.

TGLS has a $1 billion market cap and the stock returned 87% in the past 12 months. But it’s now down almost 10% year-to-date, yet it trades at a PE ratio of under 17. There’s still plenty of growth ahead and it’s now on sale.

This stock has a “B” rating in my Portfolio Grader.

Zurn Water Solutions (ZWS)

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One thing that’s just as important as having water is being able to distribute it and use if for commercial and industrial use. And that’s why Zurn Water Solutions (NYSE:ZWS) has been around since 1891.

This Wisconsin-based company has been making and selling water control systems for a very long time. They were selling water control solutions back when Benjamin Harrison was president.

And today its devices are in even more demand as environmental and supply issues make water resources ever more vital. Leaky faucets and drains are no longer acceptable.

ZWS stock reflects this. With a $4 billion market cap, ZWS is a small, focused and solid company. And right now, it’s on the upswing. The stock has gained 42% in the past 12 months, but is down 5% year-to-date. It has a decent PE ratio of 22.

This stock has a “B” rating in my Portfolio Grader.

On the date of publication, Louis Navellier has positions in WIRE and ZWS stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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