The Economy Looks Strong: 3M and 7 Other Manufacturing Stocks That Could Shine in 2025

As the U.S. economy continues to show resilience, with real GDP projected to grow by 2.5% in 2025, manufacturing stocks are poised to benefit from favorable economic conditions. This article explores how 3M and seven other manufacturing stocks could shine in the coming year, driven by factors such as strong consumer spending, a robust labor market, and an influx of capital into the industry.



1. 3M (MMM): Once a dependable dividend stock, 3M has faced challenges in recent years, including sluggish sales, recalls, and lawsuits. However, the company has appointed a new CEO, Bill Brown, who is leading a turnaround effort. 3M plans to shift products to faster-growing end markets, evaluate mergers and acquisitions, and streamline R&D spending. With a forward dividend yield of 2.1% and a P/E ratio of 17 for 2025, 3M's stock may offer an attractive entry point for investors looking for a turnaround story.
2. Parker Hannifin (PH): Specializing in components for engines and aircraft, Parker Hannifin gained 39% in 2024. Its 30-year track record of free cash flow growth and exposure to post-Covid air travel make it a reliable choice. Trading at a P/E ratio of 17 for 2025, the stock is attractively priced relative to the S&P 500.
3. Stanley Black & Decker (SWK): Although down 15% in 2024, Stanley Black & Decker is on analysts' radar following a management focus on operational transformation. Mizuho's Brett Linzey recently upgraded it to Outperform, highlighting its turnaround potential.
4. Lennox International (LII): Lennox International is a global leader in the heating, ventilation, air conditioning, and refrigeration markets. The company has shown strong financial performance and has a history of dividend growth. In 2024, the stock gained 24%, and analysts expect it to continue performing well in 2025.
5. Dover Corporation (DOV): Dover Corporation is a diversified global manufacturer with a strong track record of growth and dividend increases. The company operates in various industries, including refrigeration and food equipment, engineered systems, and fluid solutions. In 2024, the stock gained 18%, and analysts expect it to continue growing in 2025.
6. Regal Rexnord (RRX): Regal Rexnord is a leading provider of power transmission and motion control products and solutions. The company has a strong balance sheet and a history of dividend growth. In 2024, the stock gained 22%, and analysts expect it to continue performing well in 2025.
7. Illinois Tool Works (ITW): Illinois Tool Works is a diversified manufacturer with a strong track record of growth and dividend increases. The company operates in various industries, including food equipment, automotive, and industrial products. In 2024, the stock gained 14%, and analysts expect it to continue growing in 2025.
8. Rockwell Automation (ROK): Rockwell Automation is a leading provider of industrial automation and digital transformation solutions. The company has a strong balance sheet and a history of dividend growth. In 2024, the stock gained 16%, and analysts expect it to continue performing well in 2025.



These manufacturing stocks have shown promising signs of recovery or growth potential for 2025, driven by a strong economy, favorable economic indicators, and strategic initiatives. However, investors should conduct thorough research and consider various factors before making investment decisions.