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4 Industrial Manufacturing Stocks to Gain on Robust Industry Trends
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The Zacks Manufacturing – General Industrial industry is poised for growth, driven by solid momentum in the manufacturing sector, increased investments in product development and technological advancements. The industry participants’ efforts to digitalize business operations and expand market presence through strategic acquisitions are also expected to boost the industry’s growth.
However, cost inflation and challenges due to a shortage of skilled labor have marred the industry's outlook. Parker-Hannifin Corporation (PH - Free Report) , Nordson Corporation (NDSN - Free Report) , Crane Company (CR - Free Report) and Flowserve Corporation (FLS - Free Report) are a few industry participants that are likely to capitalize on the prevalent opportunities.
About the Industry
The Zacks Manufacturing – General Industrial industry comprises companies that produce a wide range of industrial equipment. Some industry players offer power transmission products, bearings, engineered fluid power components and systems, industrial rubber products, vapor-abrasive blasting equipment, vehicle-powered truck refrigeration systems, adhesive, gel coat equipment, flow-control components and linear motion components. Industrial manufacturing companies also reconstruct and assemble pumps, valves, speed reducers and hydraulic motors. The companies provide services to original equipment manufacturing and maintenance, repair and overhaul customers. These end users belong to the mining, oil and gas, forest products, agriculture and food processing, fabricated metals, chemicals and petrochemicals, transportation and utilities industries.
Major Trends Shaping the Future of the Manufacturing General Industrial Industry
Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the second consecutive month in February. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 52.4% in February. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 55.8% in the same month.
Investments in Innovation & Technological Advancements: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.
Acquisition-Based Growth Strategy: The industry players rely on an acquisition-based growth strategy to broaden their customer base and enhance their product portfolio. This helps them foray into new markets and solidify their competitive position. Exposure to various end markets helps industrial manufacturing companies offset risks associated with a single market.
Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues might increase raw material and other logistics expenses. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the third straight month in February. The rise in expenses, along with a tough labor market, poses a threat to margins. That said, companies have been focused on cost management initiatives to mitigate cost-related challenges. These include streamlining operational structures, optimizing supply networks and implementing effective pricing policies.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Manufacturing – General Industrial industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #77. This rank places it in the top 32% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Given the industry’s bright near-term prospects, we will present a few promising stocks for your portfolio. But before that, it is worth taking a look at the industry’s stock market performance and current valuation.
Industry Lags Sector and Matches the S&P 500
The Zacks Manufacturing – General Industrial industry has underperformed the broader sector and matched the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 21.9% compared with the sector and the S&P 500 Index’s rise of 26.6% and 21.9%, respectively.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing stocks, the industry is currently trading at 24.23X compared with the S&P 500’s 22.98X. It is also above the sector’s P/E ratio of 22.98X.
In the past five years, the industry has traded as high as 26.64X and as low as 16.06X, with the median being 21.39X, as the chart below shows.
Price-to-Earnings Ratio vs. SP500
Price-to-Earnings Ratio vs. Sector
4 Manufacturing-General Industrial Stocks Leading the Pack
Parker-Hannifin: Based in Cleveland, OH, Parker-Hannifin is engaged in manufacturing motion and control technologies and systems. The company stands to gain from steady demand in the commercial and military end markets across both OEM and aftermarket channels within the Aerospace segment. Also, strong demand for its products and aftermarket support services in the general aviation market bodes well.
The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s fiscal 2026 (ending June 2026) earnings has been revised upward by 2.3% in the past 60 days. Its shares have gained 52.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: PH
Nordson: Based in Westlake, OH, Nordson is involved in the manufacturing as well as distribution of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials and other fluids. The company is benefiting from increased demand for engineered fluid solution product lines within the Medical and Fluid Solutions segment. Also, solid demand for electronics dispense systems and x-ray systems is expected to bolster Nordson’s growth.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2026 (ending October 2026) earnings has been revised upward by 1.4% in the past 60 days. Its shares have surged 30.5% in the past year.
Price and Consensus: NDSN
Crane Company: Based in Stamford, CT, Crane Company manufactures and delivers specialized industrial solutions and components through sales representatives and industrial distributors. CR is well-positioned to gain from its original equipment manufacturer (OEM) business, driven by higher commercial aircraft build rates. Solid momentum in the commercial and military aftermarket businesses, driven by continued high utilization of aircraft, is aiding the company’s performance as well.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 earnings has been revised 2% upward over the past 60 days. Shares of Crane Company have gained 28.9% in the past year.
Price and Consensus: CR
Flowserve: Based in Irving, TX, Flowserve is a manufacturer and aftermarket service provider of comprehensive flow control systems globally. The company’s Flowserve Pump Division segment is benefiting from solid momentum in the aftermarket business. The increase in bookings across the energy and general industries' end markets is aiding the Flow Control Division unit’s performance, which bodes well for Flowserve.
The consensus estimate for this Zacks Rank #2 company’s 2026 earnings has been revised 4.6% upward over the past 60 days. Shares of FLS have gained 68% in the past year.
Price and Consensus: FLS
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4 Industrial Manufacturing Stocks to Gain on Robust Industry Trends
The Zacks Manufacturing – General Industrial industry is poised for growth, driven by solid momentum in the manufacturing sector, increased investments in product development and technological advancements. The industry participants’ efforts to digitalize business operations and expand market presence through strategic acquisitions are also expected to boost the industry’s growth.
However, cost inflation and challenges due to a shortage of skilled labor have marred the industry's outlook. Parker-Hannifin Corporation (PH - Free Report) , Nordson Corporation (NDSN - Free Report) , Crane Company (CR - Free Report) and Flowserve Corporation (FLS - Free Report) are a few industry participants that are likely to capitalize on the prevalent opportunities.
About the Industry
The Zacks Manufacturing – General Industrial industry comprises companies that produce a wide range of industrial equipment. Some industry players offer power transmission products, bearings, engineered fluid power components and systems, industrial rubber products, vapor-abrasive blasting equipment, vehicle-powered truck refrigeration systems, adhesive, gel coat equipment, flow-control components and linear motion components. Industrial manufacturing companies also reconstruct and assemble pumps, valves, speed reducers and hydraulic motors. The companies provide services to original equipment manufacturing and maintenance, repair and overhaul customers. These end users belong to the mining, oil and gas, forest products, agriculture and food processing, fabricated metals, chemicals and petrochemicals, transportation and utilities industries.
Major Trends Shaping the Future of the Manufacturing General Industrial Industry
Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the second consecutive month in February. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 52.4% in February. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 55.8% in the same month.
Investments in Innovation & Technological Advancements: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.
Acquisition-Based Growth Strategy: The industry players rely on an acquisition-based growth strategy to broaden their customer base and enhance their product portfolio. This helps them foray into new markets and solidify their competitive position. Exposure to various end markets helps industrial manufacturing companies offset risks associated with a single market.
Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues might increase raw material and other logistics expenses. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the third straight month in February. The rise in expenses, along with a tough labor market, poses a threat to margins. That said, companies have been focused on cost management initiatives to mitigate cost-related challenges. These include streamlining operational structures, optimizing supply networks and implementing effective pricing policies.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Manufacturing – General Industrial industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #77. This rank places it in the top 32% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Given the industry’s bright near-term prospects, we will present a few promising stocks for your portfolio. But before that, it is worth taking a look at the industry’s stock market performance and current valuation.
Industry Lags Sector and Matches the S&P 500
The Zacks Manufacturing – General Industrial industry has underperformed the broader sector and matched the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 21.9% compared with the sector and the S&P 500 Index’s rise of 26.6% and 21.9%, respectively.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing stocks, the industry is currently trading at 24.23X compared with the S&P 500’s 22.98X. It is also above the sector’s P/E ratio of 22.98X.
In the past five years, the industry has traded as high as 26.64X and as low as 16.06X, with the median being 21.39X, as the chart below shows.
Price-to-Earnings Ratio vs. SP500
Price-to-Earnings Ratio vs. Sector
4 Manufacturing-General Industrial Stocks Leading the Pack
Parker-Hannifin: Based in Cleveland, OH, Parker-Hannifin is engaged in manufacturing motion and control technologies and systems. The company stands to gain from steady demand in the commercial and military end markets across both OEM and aftermarket channels within the Aerospace segment. Also, strong demand for its products and aftermarket support services in the general aviation market bodes well.
The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s fiscal 2026 (ending June 2026) earnings has been revised upward by 2.3% in the past 60 days. Its shares have gained 52.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: PH
Nordson: Based in Westlake, OH, Nordson is involved in the manufacturing as well as distribution of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials and other fluids. The company is benefiting from increased demand for engineered fluid solution product lines within the Medical and Fluid Solutions segment. Also, solid demand for electronics dispense systems and x-ray systems is expected to bolster Nordson’s growth.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2026 (ending October 2026) earnings has been revised upward by 1.4% in the past 60 days. Its shares have surged 30.5% in the past year.
Price and Consensus: NDSN
Crane Company: Based in Stamford, CT, Crane Company manufactures and delivers specialized industrial solutions and components through sales representatives and industrial distributors. CR is well-positioned to gain from its original equipment manufacturer (OEM) business, driven by higher commercial aircraft build rates. Solid momentum in the commercial and military aftermarket businesses, driven by continued high utilization of aircraft, is aiding the company’s performance as well.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 earnings has been revised 2% upward over the past 60 days. Shares of Crane Company have gained 28.9% in the past year.
Price and Consensus: CR
Flowserve: Based in Irving, TX, Flowserve is a manufacturer and aftermarket service provider of comprehensive flow control systems globally. The company’s Flowserve Pump Division segment is benefiting from solid momentum in the aftermarket business. The increase in bookings across the energy and general industries' end markets is aiding the Flow Control Division unit’s performance, which bodes well for Flowserve.
The consensus estimate for this Zacks Rank #2 company’s 2026 earnings has been revised 4.6% upward over the past 60 days. Shares of FLS have gained 68% in the past year.
Price and Consensus: FLS