I love learning about new industries and all of their statistics. With research tools like IBIS World, investors are able to analyze the top companies in each respective industry to help guide their overall investment thesis. When looking at the manufacturing industry, which has a 9.9% profit margin as of 2023, the top companies spanning all the way from automotive to food and beverage with the highest % market share are (via IBIS World):
Boeing Co (BA): 1.2%
Exxon Mobil Corporation (XOM): .9%
Ford Motor Co (F): .8%
General Motors Co (GM): .7%
Pepsico (PEP): .6%
Tyson Foods, Inc (TSN): .5%
Johnson & Johnson (JNJ): .2%
All other companies combine for the other 96.4%.
Sentimentally speaking, the sector improved in April 2024 and “output expectations were the strongest for 6 months,” according to CBI, which has me a bit on the bullish side. And manufacturing is the heart of America, after all! So let’s take a look at the top 5 manufacturing stocks’ weekly charts and the company details:
BA
Industry Revenue (2023): $83.4 billion
Industry Profit (2023): $1.1 billion
Total Employees (2023): 156,000
BA had a rough year so far with all of the news, but it looks like recently it found a potential bottom at $159.70. If it can maintain above the 10-day MA $175.48 I’m in favor of this going back to $200s. Ideally the 10-day MA crosses the 50-day would be a bullish sign. However if it breaks that $160-ish level again, it could be seeing a lower low sub $159.70. I am leaning bullish for a big reversal on this name.
XOM
Industry Revenue (2023): $66 billion
Industry Profit (2023): $200.0 million
Total Employees (2023): 63,000
XOM has an incredibly bullish daily chart even with that dip recently. It has maintained its 10-day MA from February to April, but had a slip from the middle to the end of April. Despite it breaking below that reliable support, it defended its 50-day MA and looks like it found a local bottom at about $115. I am leaning bullish that Exxon Mobile could see back to $123 before the end of the year and maybe even new all-time high.
F
Industry Revenue (2023): $58.5 billion
Industry Profit (2023): $2.2 billion
Total Employees (2023): 173,000
F is at a tricky spot currently: it seems to have held well above the 200-day MA, but recently the 10-day has crossed below the 50 which has me cautious. However, if it can close above $12.27 the next few days I would be leaning back towards $12.48 and the previous YTD high $13.78. If it goes below that seemingly reliable support from the last few months above $11.80-12, I’d definitely be looking for a bounce around $11.50.
GM
Industry Revenue (2023): $46.1 billion
Industry Profit (2023): $1.0 billion
Total Employees (2023): 167,000
GM had an incredible run that actually panned out pretty nicely with a Wyckoff Accumulation Pattern on the monthly chart earlier in the year. On its daily chart currently it seems to be retreating to the 10-day MA which has me bullish. That volume bar on March 15 had me so excited that a big move was coming, and lo and behold the stock ended up running $40-45. Now I would be looking for this to ge back above $46 to get the next leg up to the $45-50 levels. Leaning bullish.
PEP
Industry Revenue (2023): $39.0 billion
Industry Profit (2023): $6.2 billion
Total Employees (2023): 315,000
PEP had a golden crossover (50-day MA crossed the 200-day) on 5/2; it has also shown strenght holding mostly above the 10-day MA since April. If it can get back above the previous resistance $180.63, I’m very bullish for the stock to see its 2023 high of $191. But if it breaks down below the previous low on 5/1 at about $173, I would be looking for a bounce around $170ish.
TSN
Industry Revenue (2023): $52.881 billion
Industry Profit (2023): $2.631 billion
Total Employees (2023): 139,000
TSN had a very bullish move in 2024 and just like GM, it had a huge unusual volume bar on 3/15 (which always has me wondering if it was the same buyer; I guess we will never know!). Since 3/15 it ran from $54-62 with a slight drop after earnings which seems to be recovering despite that dip below the 50-day MA. Now to be bullish again, Tyson will need to reclaim its 10-day MA $60.14. I have a feeling this will be going above its previous high of $62 based on the recent recovery. If it falls back below $58, you could potentially get lucky with an entry at $52, but am going to say I am feeling bullish on the company and chart alike.
JNJ
Industry Revenue (2023): $85.159 billion
Industry Profit (2023):
Total Employees (2023): 132,000
JNJ is one stock I notice tends to go opposite the market; on days when SPY is red, I’ve seen this stock appear green multiple times. Not to say it’s always the case, but just an observation over the years. That being said, it did tumble from March highs of $163 all the way down to $143 in April. Now, it looks like it is finally finding support above the 10-day. I would like to see the stock get back above $153 to avoid catching a falling knife (it also had a death cross recently on 4/12 which is bearish (the 50-day MA fell below the 200-day). If it cannot close above the previous resistance in the next couple weeks at about $153 I’m leaning bearish, but bulls could get a stick save here if it can get back to that key level.