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3 Industrial Stocks Set to Beat Expectations This Earnings Season
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Key Takeaways
Ingersoll Rand is likely to benefit from demand for compressors, power tools and life sciences solutions.
RBC Bearings is expected to gain from commercial aerospace, defense demand and industrial bearings sales.
Crane could see strength from aerospace markets, process flow demand and recent acquisitions.
The Zacks Industrial Products sector kicked off the second quarter of 2026 earnings season last week. In the quarter, the sector is anticipated to have benefited from the solid momentum in the manufacturing sector, growth in new orders and strong e-commerce activities. However, supply-chain bottlenecks and cost inflation are likely to have weighed on the sector’s performance.
The latest Earnings Trend report indicates a year-over-year improvement in both earnings and revenues for the S&P 500 companies within the Industrial Products sector. Per the report, the sector’s second-quarter earnings are anticipated to witness year-over-year growth of 10.6% compared with a 11.4% increase recorded in the previous quarter.
The sector’s revenues are projected to increase 9.8%, while margins are expected to rise 0.1%. The January-March quarter had witnessed 13.9% revenue growth and a 0.3% decline in margin.
Let us discuss the factors that are likely to have played a key role in shaping the performance of industrial stocks in the second quarter.
Key Factors to Consider for Industrial Stocks
Industrial companies benefited from a favorable business environment during the quarter, supported by improving manufacturing activity and sustained demand across end markets.
Per the latest Institute for Supply Management’s (ISM) report released on July 1, the Purchasing Managers Index (PMI) registered 52.7%, 54.0% and 53.3% in April, May and June, respectively. ISM’s production index in June was 52.2%, reflecting growth for the eighth consecutive month. Also, the new orders index was 56.0%, indicating the sixth successive month of increase. It’s worth noting here that in the second quarter, the United States’ industrial production recorded an annual increase of 4%, with manufacturing output rising 4.7%.
Growth in demand across several markets, including manufacturing, electrical equipment, machinery, fabricated metal products, and appliances & components, is likely to have supported the performance of industrial companies. Firms serving commercial and defense aerospace customers are also expected to have benefited from healthy aircraft production, resilient aftermarket activity and continued government spending. Also, investments in new products, disciplined pricing strategies, targeted commercial initiatives and ongoing efficiency programs are likely to have supported profitability and operational performance.
Despite these favorable trends, industrial companies continue to face headwinds from elevated input costs, persistent supply-chain issues and a softer labor market. In addition, tariffs and trade-related duties on imported raw materials and intermediate components have increased cost pressures, particularly for businesses with globally integrated supply chains.
How to Pick Earnings Estimates Beating Stocks?
Given the large number of players operating in the industrial products sector, picking the right stock is not an easy task. Our proven model, however, makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks before they report earnings with our Earnings ESP Filter.
Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with the maximum chances of delivering positive earnings surprises in their announcement. Our research shows that for stocks with this combination of ingredients, the chances of a beat are as high as 70%.
3 Industrial Stocks With Earnings Beat Potential
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2026 earnings on July 30, after market close. The Zacks Consensus Estimate for IR’s revenues is pegged at $1.96 billion, indicating 3.8% growth from the year-ago quarter’s figure. The consensus estimate for its earnings is pegged at 83 cents per share, indicating a 3.8% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate twice and matched on the other two occasions in the trailing four quarters, the average surprise being 2.4%.
Ingersoll Rand is expected to have benefited from strong demand for its industrial vacuums and blowers, power tools and compressors. Strong momentum in the life sciences business, driven by growth in fluid handling product orders within the legacy Gardner Denver Medical platform, is likely to have been a tailwind for the company. Strength in the precision technologies business and an increase in demand for biopharma solutions also bode well.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2 at present. The company is scheduled to release first-quarter fiscal 2027 earnings on July 31, before market open. The Zacks Consensus Estimate for RBC’s revenues is pegged at $508.6 million, indicating growth of 16.7% from the year-ago quarter. The consensus estimate for its earnings is pegged at $3.42 per share, indicating a 20.4% year-over-year increase. RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.2%.
Strength in the commercial aerospace market, driven by strong orders from the OEM and the aftermarket verticals, is likely to have aided the Aerospace/Defense segment. An increase in demand for RBC’s bearings and engineered component products in the defense market, supported by growth in marine and missile applications orders, is anticipated to support its results. Also, the Industrial segment is likely to have put up a decent performance, aided by stable demand for its highly engineered bearings and precision components.
Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 earnings on July 28, after market close. The Zacks Consensus Estimate for CR’s revenues is pegged at $706.1 million, indicating 22.3% growth from the year-ago quarter. The consensus estimate for its earnings is pegged at $1.66 per share, indicating an 11.4% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.3%.
Crane’s Aerospace & Advanced Technologies segment is expected to have performed well, supported by strength across its commercial and military OEM businesses with higher aircraft build rates and favorable geopolitical backdrop. Stable demand in the pharmaceutical, cryogenic and water and wastewater markets is likely to have augmented its Process Flow Technologies segment. CR’s recent acquisitions of Druck, optek-Danulat, Panametrics and Reuter-Stokes are also expected to have boosted its top line in the quarter.
View the Zacks #1 Rank List
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3 Industrial Stocks Set to Beat Expectations This Earnings Season
Key Takeaways
The Zacks Industrial Products sector kicked off the second quarter of 2026 earnings season last week. In the quarter, the sector is anticipated to have benefited from the solid momentum in the manufacturing sector, growth in new orders and strong e-commerce activities. However, supply-chain bottlenecks and cost inflation are likely to have weighed on the sector’s performance.
The latest Earnings Trend report indicates a year-over-year improvement in both earnings and revenues for the S&P 500 companies within the Industrial Products sector. Per the report, the sector’s second-quarter earnings are anticipated to witness year-over-year growth of 10.6% compared with a 11.4% increase recorded in the previous quarter.
The sector’s revenues are projected to increase 9.8%, while margins are expected to rise 0.1%. The January-March quarter had witnessed 13.9% revenue growth and a 0.3% decline in margin.
Let us discuss the factors that are likely to have played a key role in shaping the performance of industrial stocks in the second quarter.
Key Factors to Consider for Industrial Stocks
Industrial companies benefited from a favorable business environment during the quarter, supported by improving manufacturing activity and sustained demand across end markets.
Per the latest Institute for Supply Management’s (ISM) report released on July 1, the Purchasing Managers Index (PMI) registered 52.7%, 54.0% and 53.3% in April, May and June, respectively. ISM’s production index in June was 52.2%, reflecting growth for the eighth consecutive month. Also, the new orders index was 56.0%, indicating the sixth successive month of increase. It’s worth noting here that in the second quarter, the United States’ industrial production recorded an annual increase of 4%, with manufacturing output rising 4.7%.
Growth in demand across several markets, including manufacturing, electrical equipment, machinery, fabricated metal products, and appliances & components, is likely to have supported the performance of industrial companies. Firms serving commercial and defense aerospace customers are also expected to have benefited from healthy aircraft production, resilient aftermarket activity and continued government spending. Also, investments in new products, disciplined pricing strategies, targeted commercial initiatives and ongoing efficiency programs are likely to have supported profitability and operational performance.
Despite these favorable trends, industrial companies continue to face headwinds from elevated input costs, persistent supply-chain issues and a softer labor market. In addition, tariffs and trade-related duties on imported raw materials and intermediate components have increased cost pressures, particularly for businesses with globally integrated supply chains.
How to Pick Earnings Estimates Beating Stocks?
Given the large number of players operating in the industrial products sector, picking the right stock is not an easy task. Our proven model, however, makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks before they report earnings with our Earnings ESP Filter.
Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with the maximum chances of delivering positive earnings surprises in their announcement. Our research shows that for stocks with this combination of ingredients, the chances of a beat are as high as 70%.
3 Industrial Stocks With Earnings Beat Potential
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2026 earnings on July 30, after market close. The Zacks Consensus Estimate for IR’s revenues is pegged at $1.96 billion, indicating 3.8% growth from the year-ago quarter’s figure. The consensus estimate for its earnings is pegged at 83 cents per share, indicating a 3.8% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate twice and matched on the other two occasions in the trailing four quarters, the average surprise being 2.4%.
Ingersoll Rand is expected to have benefited from strong demand for its industrial vacuums and blowers, power tools and compressors. Strong momentum in the life sciences business, driven by growth in fluid handling product orders within the legacy Gardner Denver Medical platform, is likely to have been a tailwind for the company. Strength in the precision technologies business and an increase in demand for biopharma solutions also bode well.
Ingersoll Rand Inc. Price and EPS Surprise
Ingersoll Rand Inc. price-eps-surprise | Ingersoll Rand Inc. Quote
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2 at present. The company is scheduled to release first-quarter fiscal 2027 earnings on July 31, before market open. The Zacks Consensus Estimate for RBC’s revenues is pegged at $508.6 million, indicating growth of 16.7% from the year-ago quarter. The consensus estimate for its earnings is pegged at $3.42 per share, indicating a 20.4% year-over-year increase. RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.2%.
Strength in the commercial aerospace market, driven by strong orders from the OEM and the aftermarket verticals, is likely to have aided the Aerospace/Defense segment. An increase in demand for RBC’s bearings and engineered component products in the defense market, supported by growth in marine and missile applications orders, is anticipated to support its results. Also, the Industrial segment is likely to have put up a decent performance, aided by stable demand for its highly engineered bearings and precision components.
RBC Bearings Incorporated Price and EPS Surprise
RBC Bearings Incorporated price-eps-surprise | RBC Bearings Incorporated Quote
Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 earnings on July 28, after market close. The Zacks Consensus Estimate for CR’s revenues is pegged at $706.1 million, indicating 22.3% growth from the year-ago quarter. The consensus estimate for its earnings is pegged at $1.66 per share, indicating an 11.4% year-over-year increase. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.3%.
Crane’s Aerospace & Advanced Technologies segment is expected to have performed well, supported by strength across its commercial and military OEM businesses with higher aircraft build rates and favorable geopolitical backdrop. Stable demand in the pharmaceutical, cryogenic and water and wastewater markets is likely to have augmented its Process Flow Technologies segment. CR’s recent acquisitions of Druck, optek-Danulat, Panametrics and Reuter-Stokes are also expected to have boosted its top line in the quarter.
Crane Company Price and EPS Surprise
Crane Company price-eps-surprise | Crane Company Quote