This post was originally published on this site
The resurgence of COVID-19 cases and rising concerns over the highly transmissible omicron coronavirus variant make investors worried about the economic recovery. In addition, high inflation has contributed to market volatility. However, the Fed’s continued near-zero interest rates, rapid vaccination, and supportive government policies have boosted the industrial machinery sector’s growth. Moreover, the $1 trillion infrastructure bill passed on November 15 is also expected to boost the industrial machinery sector’s growth in the upcoming months. Therefore, both ABB and ITW should benefit.
ABB has gained 5.2% over the past month, while ITW has returned 4.5%. Also, ABB’s 24.3% gain year-to-date is significantly higher than ITW’s 16.8% return. Moreover, ABB is the clear winner with a 30.6% gain versus ITW’s 12.2% return over the past year.
