SIEGY - Barron's touts 10 ways to cash in on today's shortages in materials labor
Americans are facing widespread shortages in materials and labor, and the latest issue of Barron's examines ways investors can cash in through industrial stocks that help ease bottlenecks in the economy.Today's digital, virtual, asset-light, just-in-time economy built over decades has been great for profit margins, but pent-up demand from COVID-19 has left many companies short on plants, equipment and sometimes inventory, Barron's explains.BofA Research thinks companies now seeing strong demand recovery will put some of their surging earnings to work on new plants and equipment, and says investors should focus on companies that sell machines and know-how for bolstering supply chains, such as Oshkosh (OSK) and XPO Logistics (XPO).Valuations for many industrial stocks appear elevated, but it is justified because the economy is in the early stages of recovery, and upward revisions to earnings estimates are likely, say analysts at KeyBanc, who also like Oshkosh as well as Wesco International (WCC).Credit
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Barron's touts 10 ways to cash in on today's shortages in materials, labor