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3 Metal Fabrication Stocks to Buy as Industry Trends Improve
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The Zacks Metal Products - Procurement and Fabrication industry remains well-positioned supported by healthy, strong demand across its varied end markets. Recent expansion in the manufacturing sector instils optimism. Strategic pricing and cost-control initiatives are expected to help companies maintain margins despite the impact of tariffs.
Companies in the industry like TriMas Corp. (TRS - Free Report) , GrafTech International (EAF - Free Report) and NN Inc. (NNBR - Free Report) are expected to gain from these trends and their efforts to gain market share. Their continued focus on cost efficiency and operational improvements is expected to further enhance profitability.
About the Industry
The Zacks Metal Products - Procurement and Fabrication industry primarily comprises metal processing and fabrication service providers that transform metal into metal parts, machinery or components used across various other industries. Their processes include forging, stamping, bending, forming and machining, which are used to shape individual pieces of metal, and welding and assembling to join parts. The companies either use one of these processes or a combination of these. The most common raw materials utilized by metal fabrication companies include plate metal, formed or expanded metal, tube stock, welding wire or rod, and casting. The industry players serve an array of markets, including construction, mining, aerospace and defense, automotive, agriculture, oil and gas, electronics/electrical components, industrial equipment, and general consumer.
What's Shaping the Future of Metal Products - Procurement and Fabrication Industry
Industry Shows Long-Awaited Recovery: The Institute for Supply Management’s manufacturing index returned to expansion territory with a reading of 52.6% in January 2026 after 12 months of contraction. The New Orders Index also moved back into expansion at 57.1%, marking its first growth since August 2025. The Production Index climbed to 55.9% from 50.7% in December, its highest level since February 2022. Notably, the fabricated metal products industry was among the few industries to record expansion across all three indices.
Strategic Pricing Actions to Offset Cost Pressures & Tariffs: The industry had been experiencing higher prices for labor, freight and fuel. Labor shortages for some positions are driving up labor costs. To counter these pressures, manufacturers are implementing strategic pricing adjustments, cost-reduction initiatives and productivity enhancements. Additionally, companies are diversifying their supplier bases, modifying supply chains and increasing prices to mitigate the impact of tariffs.
Automation & End-Market Growth to Act as Catalysts: A strong emphasis on delivering cost-effective technical solutions and adopting automation to reduce labor dependence and boost efficiency is positioning the industry for future growth. Continued innovation and product development are expected to support this momentum. Expected growth in the end-use sectors, such as manufacturing, aerospace and automotive, is anticipated to benefit the metal fabrication market over the next few years. Rapid industrialization in developing economies also presents growth opportunities, driving long-term demand.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat prospects in the near term. The Zacks Metal Products - Procurement and Fabrication industry, which is a seven-stock group within the broader Industrial Products Sector, currently carries a Zacks Industry Rank #55, which places it at the top 23% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Versus Broader Sector
The Zacks Metal Products - Procurement and Fabrication industry has outperformed its sector and lagged the Zacks S&P 500 composite over the past year.
Over this period, the industry has grown 50% compared with the sector’s rise of 15.5%. Meanwhile, the Zacks S&P 500 composite has moved up 17.3%.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing Metal Products - Procurement and Fabrication companies, the industry is currently trading at 10.79X compared with the S&P 500’s 19.05X and the Industrial Products sector’s trailing 12-month EV/EBITDA of 19.78X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Over the last five years, the industry traded as high as 13.46X and as low as 4.58X, the median being 7.76X.
3 Metal Products - Procurement & Fabrication Stocks to Buy
TriMas: The company’s packaging segment continues to benefit from strong demand in the beauty and personal care end markets. Emphasis on product innovation and the introduction of sustainable packaging solutions are expected to drive organic growth for the segment. Recent investments in incremental capacity should further support the segment’s performance, while improved cost management initiatives are contributing to margin expansion. Additionally, TriMas has entered into an agreement to divest its Aerospace segment to sharpen its focus on the packaging business. The company’s strategy of pursuing bolt-on acquisitions, both within the industry and in adjacent product categories, to broaden its product portfolio, customer base, end markets and footprint is also expected to support long-term growth.
The Zacks Consensus Estimate for Bloomfield Hills, MI-based TriMas’ fiscal 2026 earnings has moved up 1.6% over the past 60 days. The estimate indicates year-over-year growth of 20.2%. TriMas currently carries a Zacks Rank #2 (Buy).
GrafTech International: The company’s sales volume rose 9% year over year in the third quarter of 2025. Growth was particularly strong in the United States, where volume surged 53%, underscoring the success of EAF’s strategy to shift its geographic sales mix toward this key market. EAF now expects to achieve an 8-10% year-over-year increase in sales volume for 2025, driven by its efforts to gain market share. The company also achieved a 10% year-over-year reduction in cash cost of goods sold per metric ton, demonstrating its ability to effectively manage production costs across varying demand levels. In the United States, the landscape for the steel industry remains favorable and steel output is expected to increase in the coming year. In Europe, the recently announced trade policy measures will aid recovery. By leveraging its vertically integrated production model and continuing to optimize its geographic sales mix, GrafTech is well-positioned to capitalize on long-term growth opportunities in the global steel sector.
The Zacks Consensus Estimate for 2026 for the Brooklyn Heights, OH-based GrafTech International has remained unchanged at a loss of $4.20 per share. The estimate suggests an improvement from the projected loss of $5.29 for 2025. EAF has a trailing four-quarter earnings surprise of 0.68%, on average. EAF currently carries a Zacks Rank of 2.
Price and Consensus: EAF
NN Inc.: The company’s multi-year transformation efforts remain firmly on track and are expected to deliver record adjusted EBITDA, record new sales wins, positive free cash flow and set a strong foundation for sustained improved results. NNBR continues to pivot toward higher-margin products and more attractive end markets. Rationalization of underperforming business, cost optimization and disciplined cash management also bode well. NN now has its largest sales growth team to date and an opportunity pipeline exceeding 800 new programs, representing more than $800 million in potential annual revenues. The company executed a successful M&A strategy in 2025 and continues to evaluate multiple opportunities. These include transformational acquisitions that would significantly accelerate NNBR’s scale and growth trajectory, while smaller tuck-in acquisitions would advance its growth and cost efficiency initiatives.
The Zacks Consensus Estimate for Charlotte, North Carolina-based NN Inc.’s 2026 earnings has moved up 16.7% over the past 60 days. NNBR has a trailing four-quarter earnings surprise of 97.9%, on average. The company has an estimated long-term earings growth of 45% and carries a Zacks Rank of 2.
Price and Consensus: NNBR
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3 Metal Fabrication Stocks to Buy as Industry Trends Improve
The Zacks Metal Products - Procurement and Fabrication industry remains well-positioned supported by healthy, strong demand across its varied end markets. Recent expansion in the manufacturing sector instils optimism. Strategic pricing and cost-control initiatives are expected to help companies maintain margins despite the impact of tariffs.
Companies in the industry like TriMas Corp. (TRS - Free Report) , GrafTech International (EAF - Free Report) and NN Inc. (NNBR - Free Report) are expected to gain from these trends and their efforts to gain market share. Their continued focus on cost efficiency and operational improvements is expected to further enhance profitability.
About the Industry
The Zacks Metal Products - Procurement and Fabrication industry primarily comprises metal processing and fabrication service providers that transform metal into metal parts, machinery or components used across various other industries. Their processes include forging, stamping, bending, forming and machining, which are used to shape individual pieces of metal, and welding and assembling to join parts. The companies either use one of these processes or a combination of these. The most common raw materials utilized by metal fabrication companies include plate metal, formed or expanded metal, tube stock, welding wire or rod, and casting. The industry players serve an array of markets, including construction, mining, aerospace and defense, automotive, agriculture, oil and gas, electronics/electrical components, industrial equipment, and general consumer.
What's Shaping the Future of Metal Products - Procurement and Fabrication Industry
Industry Shows Long-Awaited Recovery: The Institute for Supply Management’s manufacturing index returned to expansion territory with a reading of 52.6% in January 2026 after 12 months of contraction. The New Orders Index also moved back into expansion at 57.1%, marking its first growth since August 2025. The Production Index climbed to 55.9% from 50.7% in December, its highest level since February 2022. Notably, the fabricated metal products industry was among the few industries to record expansion across all three indices.
Strategic Pricing Actions to Offset Cost Pressures & Tariffs: The industry had been experiencing higher prices for labor, freight and fuel. Labor shortages for some positions are driving up labor costs. To counter these pressures, manufacturers are implementing strategic pricing adjustments, cost-reduction initiatives and productivity enhancements. Additionally, companies are diversifying their supplier bases, modifying supply chains and increasing prices to mitigate the impact of tariffs.
Automation & End-Market Growth to Act as Catalysts: A strong emphasis on delivering cost-effective technical solutions and adopting automation to reduce labor dependence and boost efficiency is positioning the industry for future growth. Continued innovation and product development are expected to support this momentum. Expected growth in the end-use sectors, such as manufacturing, aerospace and automotive, is anticipated to benefit the metal fabrication market over the next few years. Rapid industrialization in developing economies also presents growth opportunities, driving long-term demand.
Zacks Industry Rank Indicates Bright Prospects
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat prospects in the near term. The Zacks Metal Products - Procurement and Fabrication industry, which is a seven-stock group within the broader Industrial Products Sector, currently carries a Zacks Industry Rank #55, which places it at the top 23% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Versus Broader Sector
The Zacks Metal Products - Procurement and Fabrication industry has outperformed its sector and lagged the Zacks S&P 500 composite over the past year.
Over this period, the industry has grown 50% compared with the sector’s rise of 15.5%. Meanwhile, the Zacks S&P 500 composite has moved up 17.3%.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing Metal Products - Procurement and Fabrication companies, the industry is currently trading at 10.79X compared with the S&P 500’s 19.05X and the Industrial Products sector’s trailing 12-month EV/EBITDA of 19.78X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Enterprise Value/EBITDA (EV/EBITDA) TTM Ratio
Over the last five years, the industry traded as high as 13.46X and as low as 4.58X, the median being 7.76X.
3 Metal Products - Procurement & Fabrication Stocks to Buy
TriMas: The company’s packaging segment continues to benefit from strong demand in the beauty and personal care end markets. Emphasis on product innovation and the introduction of sustainable packaging solutions are expected to drive organic growth for the segment. Recent investments in incremental capacity should further support the segment’s performance, while improved cost management initiatives are contributing to margin expansion. Additionally, TriMas has entered into an agreement to divest its Aerospace segment to sharpen its focus on the packaging business. The company’s strategy of pursuing bolt-on acquisitions, both within the industry and in adjacent product categories, to broaden its product portfolio, customer base, end markets and footprint is also expected to support long-term growth.
The Zacks Consensus Estimate for Bloomfield Hills, MI-based TriMas’ fiscal 2026 earnings has moved up 1.6% over the past 60 days. The estimate indicates year-over-year growth of 20.2%. TriMas currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: TRS
GrafTech International: The company’s sales volume rose 9% year over year in the third quarter of 2025. Growth was particularly strong in the United States, where volume surged 53%, underscoring the success of EAF’s strategy to shift its geographic sales mix toward this key market. EAF now expects to achieve an 8-10% year-over-year increase in sales volume for 2025, driven by its efforts to gain market share. The company also achieved a 10% year-over-year reduction in cash cost of goods sold per metric ton, demonstrating its ability to effectively manage production costs across varying demand levels. In the United States, the landscape for the steel industry remains favorable and steel output is expected to increase in the coming year. In Europe, the recently announced trade policy measures will aid recovery. By leveraging its vertically integrated production model and continuing to optimize its geographic sales mix, GrafTech is well-positioned to capitalize on long-term growth opportunities in the global steel sector.
The Zacks Consensus Estimate for 2026 for the Brooklyn Heights, OH-based GrafTech International has remained unchanged at a loss of $4.20 per share. The estimate suggests an improvement from the projected loss of $5.29 for 2025. EAF has a trailing four-quarter earnings surprise of 0.68%, on average. EAF currently carries a Zacks Rank of 2.
Price and Consensus: EAF
NN Inc.: The company’s multi-year transformation efforts remain firmly on track and are expected to deliver record adjusted EBITDA, record new sales wins, positive free cash flow and set a strong foundation for sustained improved results. NNBR continues to pivot toward higher-margin products and more attractive end markets. Rationalization of underperforming business, cost optimization and disciplined cash management also bode well. NN now has its largest sales growth team to date and an opportunity pipeline exceeding 800 new programs, representing more than $800 million in potential annual revenues. The company executed a successful M&A strategy in 2025 and continues to evaluate multiple opportunities. These include transformational acquisitions that would significantly accelerate NNBR’s scale and growth trajectory, while smaller tuck-in acquisitions would advance its growth and cost efficiency initiatives.
The Zacks Consensus Estimate for Charlotte, North Carolina-based NN Inc.’s 2026 earnings has moved up 16.7% over the past 60 days. NNBR has a trailing four-quarter earnings surprise of 97.9%, on average. The company has an estimated long-term earings growth of 45% and carries a Zacks Rank of 2.
Price and Consensus: NNBR