According to an ADP report published by CNBC, private-sector job growth showed an improvement in the United States in September, due to a healthy surge in manufacturing hires. This positive data on the payroll indicates that the country’s economic slump post the coronavirus outbreak may be on a path to recovery.
The report, done in conjunction with Moody’s Analytics, comes two days ahead of the more closely watched Labor Department’s count of nonfarm payrolls growth.That report is expected to show an addition of 800,000 after August’s 1.37 million, with the unemployment rate projected to fall two-tenths of a point to 8.2%.
Privet-Sector Payrolls Increase
Per the ADP report, private-sector jobs count showed growth of 749,000, ahead of the 600,000 expected from a Dow Jones economist survey. Companies added jobs at a faster-than-expected pace in September due in good part to a surge in manufacturing hires. This definitely is a sign that the economy has finally started recovering.
Amid the coronavirus pandemic, ADP’s initial estimate has often trailed the official government count by a significant margin, indicating potential upside for the September count. The initial ADP estimate for August was just 428,000 but was revised upward to 481,000, still a good distance from the Labor Department tally.
Manufacturing Activity Boosts Hiring
The report also found that manufacturing added 130,000 jobs in September. The other sectors to add to their payrolls were trade, transportation and utilities, which cumulatively grew by 186,000.
Leisure and hospitality, a sector especially hard hit during the pandemic, saw a gain of 92,000. Education and health services rose 90,000, though all the growth came from the health care side as education lost 11,000.
Companies with more than 500 employees created the maximum number of jobs, with 297,000, while small businesses with fewer than 50 workers lagged with 192,000. Manufacturing is the backbone of any economy and more-than-expected hiring in this sector proves that the worst times are over.
Given that manufacturing and construction activity is once again gaining pace and more people are being hired, it would be prudent to invest in these five stocks.
Astec Industries, Inc. ASTE is a leading manufacturer and marketer of road-building equipment. The company sells equipment used in each phase of road building, from quarrying and crushing the aggregate, to applying the asphalt.
The company’s expected earnings growth rate for the current year is 13.6%. The Zacks Consensus Estimate for current-year earnings has improved 50.4% over the past 60 days. Astec Industries sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kaman Corporation KAMN is in the aerospace and industrial distribution markets. The company produces and markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft.
The company’s expected earnings growth rate for the current year is 12.9%. The Zacks Consensus Estimate for current-year earnings has improved 13.6% over the past 60 days. Kaman Corporationcarries a Zacks Rank #2 (Buy).
Deere Company DE is currently the world’s largest producer of agricultural equipment.
The company’s expected earnings growth rate for next year is 35.9%. The Zacks Consensus Estimate for current-year earnings has improved 19.3% over the past 60 days. Deere Companycarries a Zacks Rank #1.
Helios Technologies, Inc HLIO is an industrial technology company. It develops and manufactures hydraulic and electronic control solutions. The company’s operating subsidiaries includes Sun Hydraulics, Enovation Controls and Faster Group. Its operating business segment consists of Hydraulics and Electronics.
The company’s expected earnings growth rate for next year is 16.8%. The Zacks Consensus Estimate for current-year earnings has improved 20.3% over the past 60 days. Helios Technologies holds a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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