Despite facing supply chain constraints and Hurricane Ida-related factory shutdowns, the industrial sector’s production has surpassed the pre-pandemic levels by some measures, thanks to substantial government spending. Furthermore, President Biden’s infrastructure bill and the growing external and domestic demand have created optimism around the industrial sector for the first time in months. This will help industrial stocks that are fundamentally sound like CEMEX, (CX). Owens Corning GMS (NYSE :), Huttig Building Products (HBP), and (NYSE 🙂 all deliver strong returns over the next months. This was despite the fact that Hurricane Ida caused plant closings and because the pandemic is still not completely over. Increasing government attention to infrastructure and higher capital spending are some of the factors that contributed. Investor optimism surrounding the industrial sector’s prospects is evident from the Industrial Select Sector SPDR Fund’s (XLI) 28.8% returns over the past year.

While supply chain challenges continue to hinder growth, an increase in the demand for non-residential and industrial outsourcing services will allow the industry sector to experience steady growth. Moreover, President Biden’s infrastructure bill, which is expected to be passed by the end of October, should boost the sector.

We believe it would be prudent to place your bets on high-quality industrial stocks CEMEX and S.A.B. de C.V. (CX), Owens Corning (NYSE:) (OC), GMS Inc (GMS), and Huttig Building Products, Inc. (HBP). (GMS), Huttig Building Products, Inc. Their strong market position and continued modernization will ensure that they deliver substantial returns.

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