'Reshoring' is poised to boost U.S. companies bringing business back home. Shares of these 17 companies will benefit.

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Rising investment in U.S. factories will boost the stocks of homegrown businesses that support the trend, say Bank of America analysts as they suggest dozens of names to clients.

An increasingly chaotic world has U.S. companies bringing back their supply chains. The pandemic, U.S.-China tensions, disputes about Taiwan and war have all seriously damaged supply chains. “Just in time” has become “just in doubt” delivery.

Bank of America suggests dozens of names to clients. I offer 17 below, with help from that bank and Pedro Marcal, the lead portfolio manager of the Aquila Opportunity Growth Fund ATGAX, +0.94%.1. “Surging” mentions of reshoring on earnings calls tell us the trend is real. “It’s occurring, it’s been occurring,” said Huntington Bancshares HBAN, +2.33% CEO Steve Steinour in the bank’s July earnings call.

3. The CHIPS and Science Act of 2022 offers over $50 billion in grants to encourage semiconductor plant construction in the U.S. Also, tax incentives. Intel INTC, +0.68%, Texas Instruments TXN, +0.60%, Taiwan Semiconductor TSM, +0.44%, Samsung, Micron Technology MU, -1.42%, GlobalFoundries GFS, +0.52% and SkyWater Technology SKYT, -0.12% have announced plans to increase chip production in Texas, Arizona, Ohio New York and Idaho.

Industrial automation With wages going up a lot, companies will want to invest in automation. They’ll turn to Rockwell Automation ROK, +1.79% because it specializes in industrial automation equipment, one reason it’s a favored name at Marcal’s Aquila Opportunity Growth Fund. Rockwell gets over half its revenue from domestic sales, and it has the largest market share in this space, says Marcal.

Lithium Americas LAC, +3.09%, which has Lithium mines in Nevada, will benefit as Ford F, +1.43% ramps up factories to make EV batteries in Kentucky and Tennessee, says Marcal.

 

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