The ailing US industry expects its situation to improve under the re-elected US President Donald Trump. A Goldman Sachs analyst now recommends these stocks.
• Weak US industry expects improvement
• Companies are pinning their hopes on Trump and Musk
• Goldman Sachs analyst has some stock recommendations
US industry has been weakening for around two years now. As data from the Institute for Supply Management (ISM) showed in December 2024, the sector has declined in 24 of the last 25 months. But with a view to the new year 2025, confidence is growing: “We are cautiously optimistic today,” quotes “Yahoo Finance” Joe Ritchie. “Several companies are expecting better growth in 2025… It’s only a matter of time before that happens. There will be a tipping point at some point in 2025,” the Goldman Sachs analyst continued.
Trump inspires hope
The cautious optimism is due, among other things, to Donald Trump’s election victory. In economic policy, he relies on deregulation, infrastructure investments and tax cuts, which are well received by companies. Thanks to the red wave in the USA – in addition to the White House, the Republicans have also secured a majority in Congress – Trump should also be able to push through his agenda without much resistance.
The influence of the industry is also seen as positive Elon Musk on the new US administration. The US billionaire, who massively supported Trump during his election campaign, is to become head of the so-called DOGE department, a newly created agency that, as the Department of Government Efficiency, aims to act in an advisory capacity for greater efficiency in US authorities and to leverage massive savings potential. The focus is on reducing bureaucracy.
Goldman Sachs recommends these stocks
Since the US presidential election on November 5, 2024, so-called Trump trades have dominated the market, including space stocks. Looking ahead to 2025, Goldman Sachs analyst Ritchie believes companies that have streamlined their operations and rebalanced their portfolios will be best positioned for growth.
His top pick in the sector is Parker Hannifin, highlighting the company’s decade-long transformation initiative: “Parker-Hannifin is a great company that is very well run… About two-thirds of the business is industry-related and about one-third with aerospace and defense. “They were able to do incredibly well, even at a time when industrial markets were not a tailwind for them,” Yahoo Finance quoted the analyst as saying.
Joe Ritchie also gives a thumbs up to some well-known names. In his opinion, US industrial groups Honeywell and 3M are also taking the right steps to focus more and “change the margins of the business.”
Editorial team finanzen.net
Selected leverage products on 3M
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on 3M
The leverage must be between 2 and 20
Advertising