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Here's Why Investors Should Consider Retaining RBC Bearings Stock Now
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Key Takeaways
RBC's Aerospace/Defense revenues climbed 41.2% in Q4, fueled by OEM and aftermarket demand.
RBC expects Q1 fiscal 2027 net sales of $500-$510 million, up 14.7-17% year over year.
RBC expanded defense, space and commercial offerings with the VACCO Industries acquisition.
RBC Bearings Incorporated (RBC - Free Report) has been benefiting from strength in the Aerospace/Defense segment, driven by solid momentum in the commercial aerospace market. Strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals is driving the segment’s performance (revenues up 41.2% year over year in fourth-quarter fiscal 2026). An increase in demand for the company’s bearings and engineered component products in the defense market is likely to bode well for the segment in the quarters ahead.
The company is also witnessing strength in the Industrial segment (revenues increased 5.5% year over year in the fiscal fourth quarter). Stable demand for its highly engineered bearings and precision components in food & beverage, aggregate & cement, grain, semiconductor and warehousing markets bodes well. For the first quarter of fiscal 2027, RBC Bearings anticipates net sales to be in the range of $500-$510 million, suggesting a year-over-year increase of 14.7-17%.
RBC Bearings intends to strengthen its business through acquisitions. In July 2025, the company completed the acquisition of VACCO Industries from ESCO Technologies. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong design, engineering and production capabilities, enabled the company to expand its customer offerings in the defense, space and commercial markets.
RBC’s Price Performance
Image Source: Zacks Investment Research
In the past six months, shares of this Zacks Rank #3 (Hold) company have risen 25.6% compared with the industry’s 4.2% growth.
Despite the positives, RBC has been dealing with rising costs and expenses. In fiscal 2026, the company’s cost of sales increased 14.3% year over year. Selling, general and administrative expenses also increased 13.2% year over year in the same period due to rising personnel costs and stock compensation costs.
The company utilizes a variety of raw materials, including steel and cast iron, in its businesses. The persistence of tariff-related concerns, particularly for steel, might inflate costs and delay the delivery of products to its customers.
Stocks to Consider
Some better-ranked stocks from the same space are discussed below.
HLIO delivered a trailing four-quarter average earnings surprise of 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 5.5%.
Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.1%.
The Zacks Consensus Estimate for AIT’s fiscal 2026 earnings has improved 0.3% in the past 60 days.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 12.7%.
In the past 60 days, the consensus estimate for FLS’s 2026 earnings has remained stable.
View the Zacks #1 Rank List
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Here's Why Investors Should Consider Retaining RBC Bearings Stock Now
Key Takeaways
RBC Bearings Incorporated (RBC - Free Report) has been benefiting from strength in the Aerospace/Defense segment, driven by solid momentum in the commercial aerospace market. Strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals is driving the segment’s performance (revenues up 41.2% year over year in fourth-quarter fiscal 2026). An increase in demand for the company’s bearings and engineered component products in the defense market is likely to bode well for the segment in the quarters ahead.
The company is also witnessing strength in the Industrial segment (revenues increased 5.5% year over year in the fiscal fourth quarter). Stable demand for its highly engineered bearings and precision components in food & beverage, aggregate & cement, grain, semiconductor and warehousing markets bodes well. For the first quarter of fiscal 2027, RBC Bearings anticipates net sales to be in the range of $500-$510 million, suggesting a year-over-year increase of 14.7-17%.
RBC Bearings intends to strengthen its business through acquisitions. In July 2025, the company completed the acquisition of VACCO Industries from ESCO Technologies. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong design, engineering and production capabilities, enabled the company to expand its customer offerings in the defense, space and commercial markets.
RBC’s Price Performance
Image Source: Zacks Investment Research
In the past six months, shares of this Zacks Rank #3 (Hold) company have risen 25.6% compared with the industry’s 4.2% growth.
Despite the positives, RBC has been dealing with rising costs and expenses. In fiscal 2026, the company’s cost of sales increased 14.3% year over year. Selling, general and administrative expenses also increased 13.2% year over year in the same period due to rising personnel costs and stock compensation costs.
The company utilizes a variety of raw materials, including steel and cast iron, in its businesses. The persistence of tariff-related concerns, particularly for steel, might inflate costs and delay the delivery of products to its customers.
Stocks to Consider
Some better-ranked stocks from the same space are discussed below.
Helios Technologies (HLIO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HLIO delivered a trailing four-quarter average earnings surprise of 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 5.5%.
Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.1%.
The Zacks Consensus Estimate for AIT’s fiscal 2026 earnings has improved 0.3% in the past 60 days.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 12.7%.
In the past 60 days, the consensus estimate for FLS’s 2026 earnings has remained stable.