AAL, PFD, CRDA: Trending stocks as manufacturing output eases

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AAL, PFD, CRDA: Trending stocks as manufacturing output eases

 AAL, PFD, CRDA: Trending stocks as manufacturing output eases
Image source: Source: © Scanrail | Megapixl.com

Highlights:

  • Growth in manufacturing output eased in the quarter to July amid inflationary pressures.
  • The sector witnessed the slowest growth rate in a year during the period.

Inflationary pressures, as well as the disruption in supply chains due to the Russia-Ukraine conflict, have impacted the UK's manufacturing sector. In the quarter to July, industrial output grew at the slowest pace in over a year, despite a slight pickup in investment.

The Industrial Trends Survey, a quarterly survey by the Confederation of British Industry (CBI), showed that the output balance fell to +6% in July, from +25% in the three months to June. This is the lowest growth since April 2021 but still above the long-term average growth of +2. A similar rate is expected in the quarter to October, CBI said. The survey is based on responses from 237 manufacturing firms. 

Growth in manufacturing output eased in the quarter to July amid inflationary pressures.

Image source: GH Studio, Shutterstock

The latest figures indicated a more typical expansion rate after a period of solid growth over the previous year.

The average costs during the period also saw a slower growth rate of +82%, compared to the previous quarter's rate of +87%. This growth is expected to further slow down to +77% in October. Besides, domestic price growth also eased from +60% in April to +51% in July. 

On the other hand, investment in the sector picked up in July compared to April, while employment registered a slight fall to touch +18% from +21% in April.

In the wake of this news, here's a look at three London-listed manufacturing stocks.

Anglo American plc (LON: AAL)

Anglo American is a leading British miner engaged in the production of platinum, diamonds, copper, iron ore, and other metals. With a market cap of £35,653.14 million, shares of the company were trading at GBX 2,719.00, up 2.01% as of 12:57 pm GMT+1 on Monday. The share value has declined by 8.15% over the past 12 months and by 9.62% on a year-to-date basis. Its earnings per share are currently at 6.93.

Premier Foods Plc (LON: PFD)

The British food manufacturer has popular brands like Cadbury and Mr Kipling under its portfolio. It has acquired Indian and Thai recipe kit maker The Spice Tailor in a £43.8 million deal. The FTSE 250 constituent has a market cap of £975.40 million, and it has given a return of 6.36% to investors over the past year. The earnings per share currently stand at 0.13, and the shares were trading 3.54% up at GBX 117.00 as of 1:06 pm on 25 July.

Croda International (LON: CRDA)

Croda international manufactures speciality chemicals and is listed on the FTSE 100 index. The stock has slipped by 12.37% over the past 12 months, while the year-to-date return is at -31.20%. Shares of the company were trading at GBX 6,946.00, down 1.48% as of 1:09 pm on Monday, with a market cap of £9,844.30 million.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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