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4 Stocks to Grab as Higher Industrial Production Boosts Manufacturing
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Key Takeaways
U.S. industrial production rose 0.7% in January as PMI climbed to 52.6, signaling expansion.
New Orders Index surged to 57.1, boosting demand for manufactured goods.
PRLB, RBC, HLIO and TRMB show solid earnings growth estimates amid sector rebound.
The U.S. manufacturing sector struggled over the past three years but appears to be making a solid rebound. Although high prices and a shrinking labor market remain major concerns, demand has been on the rise lately, which is boosting manufacturing activity.
Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — Proto Labs, Inc. (PRLB - Free Report) , RBC Bearings Incorporated (RBC - Free Report) , Helios Technologies, Inc. (HLIO - Free Report) and Trimble Inc. (TRMB - Free Report) — that we have detailed below. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or #2 (Buy) and assures good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Industrial Production Jumps
U.S. industrial production jumped a solid 0.7% sequentially in January, beating analysts’ expectations of a rise of 0.4%, according to data from the Federal Reserve. This follows a 0.2% gain in December. The solid month-over-month gain in industrial production suggests a rebound in manufacturing activity as the sector continues to gain momentum.
Industrial production is a key economic measure because it tracks changes in the total, inflation-adjusted output generated by factories, mining operations and utility providers. A jump in the reading is considered bullish for the U.S. dollar.
The Fed’s report comes days after the ISM Manufacturing Index showed that PMI reading jumped to 52.6 in January from 47.9 in December, surpassing analysts’ expectations of a rise to 48.5. This marked the strongest reading since 2022, with the sector growing for the first time in a year.
Any reading above 47.5% for prolonged periods signals an expansion in the broader economy. The sharp increase in January was largely fueled by a jump in new orders for manufactured products. The New Orders Index surged by 9.7% points to 57.1% from 47.4% in December, reaching its highest level since February 2022 and posting its first increase since August 2025.
Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has somewhat eased borrowing costs and price pressures, thus driving demand.
The Federal Reserve held interest rates steady in its current range of 3.5% to 3.75% at the January meeting. However, the central bank said that it is open to more rate cuts depending on how inflation eases. Earlier, the Fed said that it is hopeful about inflation slowing down to 2.4% by the end of 2026 and economic growth accelerating to 2.3% this year.
4 Industrial Products Stocks With Upside
Proto Labs
Proto Labs, Inc. is an online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. PRLB produces CNC-machined and injection-molded plastic parts.
Proto Labs’ expected earnings growth for the current year is 8.4%. The Zacks Consensus Estimate for current-year earnings has improved 13.2% over the past 60 days. PRLB currently carries a Zacks Rank #1.
RBC Bearings Incorporated
RBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss, and enable proper power transmission in most machines and mechanical systems.
RBC Bearings’expected earnings growth for the current year is 23.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the past 60 days. RBC currently has a Zacks Rank #1.
Helios Technologies
Helios Technologies, Inc. is an industrial technology company. HLIO develops and manufactures hydraulic and electronic control solutions. Helios Technologies’ operating subsidiaries include Sun Hydraulics, Enovation Controls and Faster Group.
Helios Technologies’ expected earnings growth for the current year is 17.2%. The Zacks Consensus Estimate for next year's earnings has improved 0.4% over the past 60 days. HLIO presently has a Zacks Rank #2.
Trimble
Trimble Inc. is a leading technology solutions provider that addresses the needs of building, civil and infrastructure construction, geospatial, survey and mapping, natural resources, utilities, transportation, and government end-markets. Asset owners, general and specialty contractors, engineers and designers, surveyors, energy and utility companies, trucking companies and drivers, as well as state, federal, and municipal governments are TRMB’s primary customers.
Trimble’s expected earnings growth for the current year is 12.8%. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the past 60 days. TRMB presently has a Zacks Rank #2.
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4 Stocks to Grab as Higher Industrial Production Boosts Manufacturing
Key Takeaways
The U.S. manufacturing sector struggled over the past three years but appears to be making a solid rebound. Although high prices and a shrinking labor market remain major concerns, demand has been on the rise lately, which is boosting manufacturing activity.
Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — Proto Labs, Inc. (PRLB - Free Report) , RBC Bearings Incorporated (RBC - Free Report) , Helios Technologies, Inc. (HLIO - Free Report) and Trimble Inc. (TRMB - Free Report) — that we have detailed below. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or #2 (Buy) and assures good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Industrial Production Jumps
U.S. industrial production jumped a solid 0.7% sequentially in January, beating analysts’ expectations of a rise of 0.4%, according to data from the Federal Reserve. This follows a 0.2% gain in December. The solid month-over-month gain in industrial production suggests a rebound in manufacturing activity as the sector continues to gain momentum.
Industrial production is a key economic measure because it tracks changes in the total, inflation-adjusted output generated by factories, mining operations and utility providers. A jump in the reading is considered bullish for the U.S. dollar.
The Fed’s report comes days after the ISM Manufacturing Index showed that PMI reading jumped to 52.6 in January from 47.9 in December, surpassing analysts’ expectations of a rise to 48.5. This marked the strongest reading since 2022, with the sector growing for the first time in a year.
Any reading above 47.5% for prolonged periods signals an expansion in the broader economy. The sharp increase in January was largely fueled by a jump in new orders for manufactured products. The New Orders Index surged by 9.7% points to 57.1% from 47.4% in December, reaching its highest level since February 2022 and posting its first increase since August 2025.
Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has somewhat eased borrowing costs and price pressures, thus driving demand.
The Federal Reserve held interest rates steady in its current range of 3.5% to 3.75% at the January meeting. However, the central bank said that it is open to more rate cuts depending on how inflation eases. Earlier, the Fed said that it is hopeful about inflation slowing down to 2.4% by the end of 2026 and economic growth accelerating to 2.3% this year.
4 Industrial Products Stocks With Upside
Proto Labs
Proto Labs, Inc. is an online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. PRLB produces CNC-machined and injection-molded plastic parts.
Proto Labs’ expected earnings growth for the current year is 8.4%. The Zacks Consensus Estimate for current-year earnings has improved 13.2% over the past 60 days. PRLB currently carries a Zacks Rank #1.
RBC Bearings Incorporated
RBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss, and enable proper power transmission in most machines and mechanical systems.
RBC Bearings’expected earnings growth for the current year is 23.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the past 60 days. RBC currently has a Zacks Rank #1.
Helios Technologies
Helios Technologies, Inc. is an industrial technology company. HLIO develops and manufactures hydraulic and electronic control solutions. Helios Technologies’ operating subsidiaries include Sun Hydraulics, Enovation Controls and Faster Group.
Helios Technologies’ expected earnings growth for the current year is 17.2%. The Zacks Consensus Estimate for next year's earnings has improved 0.4% over the past 60 days. HLIO presently has a Zacks Rank #2.
Trimble
Trimble Inc. is a leading technology solutions provider that addresses the needs of building, civil and infrastructure construction, geospatial, survey and mapping, natural resources, utilities, transportation, and government end-markets. Asset owners, general and specialty contractors, engineers and designers, surveyors, energy and utility companies, trucking companies and drivers, as well as state, federal, and municipal governments are TRMB’s primary customers.
Trimble’s expected earnings growth for the current year is 12.8%. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the past 60 days. TRMB presently has a Zacks Rank #2.