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3 Solid Stocks to Grab as Manufacturing Activity Hits 3-Month High
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Key Takeaways
U.S. manufacturing PMI climbed to 55.5 in October, marking its highest level in three months.
Production surged to 59 points, while new orders hit their highest reading since July.
AIT, CR and AIN offer earnings growth prospects of 10.1%, 19.7% and over 100%, respectively.
The manufacturing sector has been making a steady recovery after struggling for months. Manufacturing activity has been gaining momentum this year despite inflationary pressures and continued geopolitical tensions.
Manufacturing activity rose at a solid pace in October, boosted by robust demand that also saw a jump in production and new orders.
Given the positive sentiment, it would be ideal to invest in three stocks from the manufacturing sector — Applied Industrial Technologies, Inc. (AIT - Free Report) , Crane Company (CR - Free Report) and Albany International Corp. (AIN - Free Report) — that we have detailed below.
Manufacturing Activity Rises
The ISM Manufacturing PMI rose to 55.5 in October from September’s reading of 54.5 and surpassed analysts’ expectations, who had forecast it to remain unchanged. Any reading above 50 indicates growth in the sector. The Manufacturing PMI has remained above the 50 threshold in all 10 months of the year.
The manufacturing sector, which accounts for 9.4% of the economy, has been showing steady recovery over the past few months. Most importantly, the production index rose 2.3% in October to hit 59 points, its highest level since November 2021. The new orders index jumped to 55.5 last month, its highest reading since July.
The new orders index has now stayed above the 50 threshold for 10 straight months, reflecting solid demand for U.S. manufactured goods. Manufacturing activity is being primarily driven by aggressive consumer spending and investment in AI.
President Donald Trump’s latest tariffs on Canada have posed a major challenge for the manufacturing sector. Manufacturers are also feeling price pressures due to a sudden jump in the costs of aluminum, steel and energy products linked to the ongoing conflict in the Middle East. Oil prices have surged, increasing costs of raw materials.
However, robust domestic demand has been boosting the manufacturing sector. The U.S. economy grew 3.4% in the third quarter of 2026, the fastest pace in over five years after increasing 2.2% in the second quarter.
3 Industrial Products Stocks With Upside
Applied Industrial Technologies
Applied Industrial Technologies, Inc. is a distributor of value-added industrial products — including engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous industrial supplies. AIT’s products are mainly sold to original equipment manufacturers and maintenance, repair and operations customers in Australia, North America, Singapore and New Zealand.
Applied Industrial Technologies’ expected earnings growth for the current year is 10.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. AIT currently has a Zacks Rank #2 (Buy).
Crane Company
Crane Company is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. CR has two strategic growth platforms: Aerospace & Advanced Technologies and Process Flow Technologies.
Crane Company’s expected earnings growth for the current year is 19.7%. The Zacks Consensus Estimate for the current year's earnings has improved 3.6% over the past 60 days. Currently, CR has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albany International
Albany International Corp. is a global advanced textiles and materials processing company.
Albany International’s expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year’s earnings has improved 7% over the past 60 days. Currently, AIN sports a Zacks Rank #1.
View the Zacks #1 Rank List
Image: Bigstock
3 Solid Stocks to Grab as Manufacturing Activity Hits 3-Month High
Key Takeaways
The manufacturing sector has been making a steady recovery after struggling for months. Manufacturing activity has been gaining momentum this year despite inflationary pressures and continued geopolitical tensions.
Manufacturing activity rose at a solid pace in October, boosted by robust demand that also saw a jump in production and new orders.
Given the positive sentiment, it would be ideal to invest in three stocks from the manufacturing sector — Applied Industrial Technologies, Inc. (AIT - Free Report) , Crane Company (CR - Free Report) and Albany International Corp. (AIN - Free Report) — that we have detailed below.
Manufacturing Activity Rises
The ISM Manufacturing PMI rose to 55.5 in October from September’s reading of 54.5 and surpassed analysts’ expectations, who had forecast it to remain unchanged. Any reading above 50 indicates growth in the sector. The Manufacturing PMI has remained above the 50 threshold in all 10 months of the year.
The manufacturing sector, which accounts for 9.4% of the economy, has been showing steady recovery over the past few months. Most importantly, the production index rose 2.3% in October to hit 59 points, its highest level since November 2021. The new orders index jumped to 55.5 last month, its highest reading since July.
The new orders index has now stayed above the 50 threshold for 10 straight months, reflecting solid demand for U.S. manufactured goods. Manufacturing activity is being primarily driven by aggressive consumer spending and investment in AI.
President Donald Trump’s latest tariffs on Canada have posed a major challenge for the manufacturing sector. Manufacturers are also feeling price pressures due to a sudden jump in the costs of aluminum, steel and energy products linked to the ongoing conflict in the Middle East. Oil prices have surged, increasing costs of raw materials.
However, robust domestic demand has been boosting the manufacturing sector. The U.S. economy grew 3.4% in the third quarter of 2026, the fastest pace in over five years after increasing 2.2% in the second quarter.
3 Industrial Products Stocks With Upside
Applied Industrial Technologies
Applied Industrial Technologies, Inc. is a distributor of value-added industrial products — including engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous industrial supplies. AIT’s products are mainly sold to original equipment manufacturers and maintenance, repair and operations customers in Australia, North America, Singapore and New Zealand.
Applied Industrial Technologies’ expected earnings growth for the current year is 10.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. AIT currently has a Zacks Rank #2 (Buy).
Crane Company
Crane Company is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. CR has two strategic growth platforms: Aerospace & Advanced Technologies and Process Flow Technologies.
Crane Company’s expected earnings growth for the current year is 19.7%. The Zacks Consensus Estimate for the current year's earnings has improved 3.6% over the past 60 days. Currently, CR has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albany International
Albany International Corp. is a global advanced textiles and materials processing company.
Albany International’s expected earnings growth for the current year is more than 100%. The Zacks Consensus Estimate for the current year’s earnings has improved 7% over the past 60 days. Currently, AIN sports a Zacks Rank #1.