Manufacturing stands tall as a cornerstone of the U.S. economy, symbolizing vitality and innovation. Second only to powerhouse China, the manufacturing sector in America, according to data from The National Association of Manufacturers, contributes a hefty 10% to the country’s GDP. This sector employs a staggering 13 million individuals, showcasing its impressive economic muscle by generating a whopping $1.6 trillion annually through exports of manufactured goods worldwide.

A glimpse into the lives of those contributing to this economic sector reveals a comfortable average annual salary of $98,846 for American manufacturing employees, with a remarkable 93% of them enjoying healthcare benefits under their employer’s wing. Furthermore, an astonishing 53% of private sector research and development (R&D) spending in the U.S. finds its home in the manufacturing realm. Forecasts predicting four million net new jobs within the industry by the year 2030 bust myths of manufacturing decline. With this economic significance in mind, we delve into the top three manufacturing stocks to consider for investment in March 2024.

General Electric (GE)

General Electric (NYSE:GE) emerges as a phoenix rising from the ashes, embodying the quintessential American comeback story. Renowned for its diverse manufacturing portfolio, GE has experienced a glorious resurgence after enduring over a decade of stagnation. Dubbed a “value trap” by industry analysts, GE stock has defied all odds, skyrocketing by a notable 85% over the past year, with a commendable 28% surge in the current year of 2024. This remarkable revival reflects a shift in sentiment towards a company many had prematurely counted out.

The strategic move to dismantle the conglomerate into separate publicly traded entities has been a game-changer for General Electric. Following the successful spinoff of its healthcare division last year, GE is poised to further enhance its operational efficiency by spinning off its energy business into an independent entity this April. This deconstruction strategy is undoubtedly paying dividends, as evidenced by GE’s most recent financial triumphs.

GE’s fourth quarter of 2023 financial report trumpeted positive news, outperforming analyst expectations with an impressive earnings announcement of $1.03 per share, surpassing the projected 91 cents. Revenue surged by 15% to a notable $19.42 billion, outshining estimates of $17.67 billion. Notably, robust demand continues to drive growth in GE’s jet engine segment, showcasing the company’s resilience and strategic vision.

Alcoa (AA)

For investors seeking a bargain opportunity amidst the shifting tides of the aluminum market, Alcoa (NYSE:AA) emerges as a promising candidate. While the Pittsburgh-based aluminum giant faced challenges in recent years, a recent strategic move to acquire Australian aluminum rival Alumina (OTC:AWCMY) for $2.21 billion has stirred anticipation in the industry. Alcoa’s bold acquisition bid aims to strengthen its position in the global markets for alumina and bauxite, key components in aluminum production. The proposed acquisition, facilitated through an all-stock deal, has received a vote of confidence from Alumina’s board of directors, auguring well for the consolidation.

As Alcoa charts its growth trajectory through strategic acquisitions, its stock price has experienced a dip of close to 50% over the last year, setting the stage for potential value investors to seize an attractive proposition. Alcoa’s strategic move aligns with the evolving demands of the market as the world transitions towards sustainable energy sources, underlining the company’s proactive stance in adapting to changing industry dynamics.

Taiwan Semiconductor Manufacturing Co. (TSM)

Revolutionizing Technology: Taiwan Semiconductor Manufacturing Co.

The Titan of Microchips

When it comes to technology manufacturing, few entities loom as large as Taiwan Semiconductor Manufacturing Co. (NYSE:TSM). Holding the mantle as the world’s leading manufacturer of microchips and semiconductors, TSMC commands a staggering 75% share of the global microchip market. These chips are the unseen engines propelling a multitude of devices, from AI-powered chatbots to everyday appliances and automobiles. The strategic significance of TSMC in the global economic landscape cannot be overstated.

A Booming Stock Performance

Amidst a surging demand for microchips, particularly driven by the rise of artificial intelligence applications, TSMC’s stock is basking in the limelight. Year-to-date, the company’s share price has soared by an impressive 36%. Looking back over the past 12 months, investors have witnessed a remarkable ascent of 54% in TSM shares. Not content to rest on its laurels in its native Taiwan, TSMC recently inaugurated its state-of-the-art microchip facility in Japan, signaling its global ambitions.

Expanding Horizons: From Taiwan to Arizona

Eyeing the burgeoning microchip demand in the United States, TSMC has embarked on a massive undertaking – the construction of two cutting-edge fabrication plants in Arizona at a staggering cost of $40 billion. These facilities are poised to bolster America’s microchip supply chain and cement TSMC’s foothold in the burgeoning U.S. market. The company’s expansion into Arizona marks a significant milestone in its quest for global dominance in semiconductor manufacturing.