With the end of 2024 the industrial sector is hopeful for a better 2025. During the Goldman Sachs Industrial and Materials conference analysts predicted a better growth of industrial stocks in 2025. Data from Institute for Supply Management showed the downturn of industry in the last 25 months. The dip has also influenced the stocks of the industry.
Since the start of 2024 top stocks of industry have had ups and downs. Among the op performers are General Electric Aerospace and Eaton Corporation. Then we have Union Pacific and UPS at the bottom of the list of performers as their stock prices have taken a dip over the year.
Trump’s corporate tax cut will play a great role in boosting the economy. Currently corporate tax is at 25%. Trump wants to reduce the tax to 15%. This will help create more businesses. That’s the basic plan to recuperate the lost revenue from taxes. Moreover, Trump’s plan includes deregulation of markets. This will make it easier to invest in various sectors. He wants to prop up the industrial base.
Rather than social welfare he wants to spend the earned taxes on infrastructure to give the economy a boost. This bodes well for the industrial stocks in the future. Stocks of space industries are seeing a rise in their shares. Planet Labs have gained 133.71% over the last 3 months. This is due to investors speculating space industries will get support from the Trump administration.
On the 2025 forecast list we have Parker Hannifin as the company has taken numerous initiatives to position itself better in the industry. Then we have Honeywell International Inc.will get a boost from their transformative actions. As for the aerospace industry Woodward is a good bet. The company has seen a 34.56% growth over the year.
Even though investors are speculating a positive return of the industrial stocks, it remains to be seen. If Trump’s initiatives pay off with the tariff play this could result in more American made exports. As a result the US economy will get just what it needs to revive itself once again.