Mueller IndustriesNYSE: MLI

Bloomberg's “Odd Lots” podcast recently discussed with energy investor John Arnold why it's so difficult to build products in America. The discussion got me thinking about American manufacturing stocks.

COLLIERVILLE, Tenn.--(BUSINESS WIRE)--Mueller Industries, Inc. (NYSE: MLI) today announced that it has completed its acquisition of Nehring Electrical Works Company and certain of its affiliated companies (collectively, “Nehring”). Founded in 1912 and headquartered in DeKalb, Illinois, Nehring produces high-quality wire and cable solutions for the utility, telecommunication, electrical distribution, and OEM markets. The acquisition of Nehring provides a substantial platform for long-term growth.

There was a time when globalization wasn't just a quaint idea but something companies strived for. The American stocks attracting investor attention while this economic movement played out are companies like General Electric (NYSE: GE ) and other industrial conglomerates.

One of the fun things about writing about stocks for a living is the library of content you can draw upon for inspiration. Back in June 2020, we were deep in the pandemic, so I wrote a piece about cash-rich stocks to buy for peace of mind.

Mueller Industries is a building materials company that offers potentially ongoing capital gains and a modest dividend. The company operates in multiple countries and its revenue is primarily generated from the US. Mueller has competitive advantages and strong financial performance, although its growth rate has slowed compared to the two previous years.

Mueller Industries is a high-quality traditional manufacturing business with strong profitability metrics and a resilient balance sheet. The company's financial performance has been strong over the past decade, with substantial improvement in profitability metrics and consistent positive free cash flow. Despite challenges in the current macro environment, Mueller Industries is well-positioned compared to competitors and offers an attractive valuation with a potential 32% upside.

Mueller Industries is a leading manufacturer of copper, aluminum, brass, and plastic products, with a strong presence in building construction markets. We touch upon the company's fundamental strengths. We question if the stock has the ability to generate ample alpha at these levels.

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