Buy These 5 Stocks as U.S. Manufacturing Activities Rebound in 2026
The U.S. manufacturing sector has struggled over the past three years but appears to be making a solid rebound in 2026. ISM Manufacturing PMI (purchasing managers’ index) expanded in May for the fifth straight month.
The index for May came in at 54%, higher than April’s metric of 52.7% and above the Zacks Consensus Estimate of 53.3%. Any reading above 50% indicates expansion of manufacturing activities.
The Zacks-defined Manufacturing – General Industrial industry is currently in the top 35% of the Zacks Industry Rank. Since Manufacturing – General Industrial is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Given the positive sentiment, it would be ideal to invest in five stocks from the manufacturing industry with a favorable Zacks Rank and double-digit returns year to date. These are: RBC Bearings Inc. RBC, Helios Technologies Inc. HLIO, Luxfer Holdings plc LXFR, Tennant Co. TNC and Graham Corp. GHM.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
RBC Bearings Inc.
Zacks Rank #2 RBC Bearings is benefiting from strength in its Aerospace/Defense unit. Strength in the commercial aerospace market, driven by strong growth in orders from the aftermarket verticals, bodes well for the segment.
An increase in demand for RBC’s bearings and engineered component products in the defense market is expected to be beneficial. Solid momentum in the Industrial segment, driven by stable demand for its highly engineered bearings and precision components in food & beverage, aggregate & cement and warehousing end markets, also bodes well for RBC. Solid shareholder-friendly policies raise the stock’s attractiveness.
RBC Bearings has an expected revenue and earnings growth rate of 13.6% and 14.2%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% in the last 60 days.
Helios Technologies Inc.
Zacks Rank #1 Helios Technologies is benefiting from sustained order momentum, expanding market reach and improving profitability. HLIO has delivered double-digit order growth for more than a year, with backlog also rising. Growth across both Hydraulics and Electronics segments is driven by infrastructure-related demand, OEM strength and recovery in select end markets.
New product launches are broadening HLIO’s addressable markets, including newer applications such as data center thermal management. At the same time, margin recovery is gaining traction through volume leverage and operational efficiencies. HLIO’s solid cash generation and lower leverage provide flexibility to invest, pursue selective acquisitions and enhance shareholder returns.
Story Continues
Helios Technologies has an expected revenue and earnings growth rate of 2.9% and 12.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.7% in the last 30 days.
Luxfer Holdings plc
Luxfer Holdings is a materials technology company specializing in the design, manufacture and supply of high-performance materials, components and gas cylinders. LXFR had two divisions, Elektron and Gas Cylinders. Currently, Luxfer Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Elektron division focuses on specialty materials based on magnesium, zirconium and rare earths. The Gas Cylinders division manufactures products made from aluminum, composites and other metals using technically advanced processes.
LXFR also offers recycling services and magnesium powders throughout global networks. LXFR operates manufacturing plants in various countries, which include the United Kingdom, the United States, France, the Czech Republic, Canada and China.
Luxfer Holdings has an expected revenue and earnings growth rate of -6.1% and 8.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.1% in the last 30 days.
Tennant Co.
Zacks Rank #1 Tennant is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, significantly reduce their environmental impact and help create a cleaner, safer, healthier world.
TNC’s products include equipment for maintaining surfaces in industrial, commercial and outdoor environments, detergent-free and other sustainable cleaning technologies, and coatings for protecting, repairing and upgrading surfaces.
TNC’s global field service network is the most extensive in the industry. Tennant has manufacturing operations in Minneapolis, MN, Holland, MI, Louisville, KY, Chicago, IL, Uden, The Netherlands, Sou Paulo, Brazil, and Shanghai, China. TNC sells products directly in 15 countries and through distributors in more than 80 countries.
Tennant has an expected revenue and earnings growth rate of 5.4% and -6.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5.8% in the last 30 days.
Graham Corp.
Zacks Rank #2 Graham designs and builds vacuum and heat transfer equipment for process industries and energy markets worldwide. GHM’s products include steam jet ejector vacuum systems and liquid ring vacuum pumps, surface condensers, Heliflows, water heaters, and various types of heat exchangers. GHM markets to chemical, petrochemical, petroleum refining, and electric power generating industries, including cogeneration and geothermal plants.
Graham has an expected revenue and earnings growth rate of 17.4% and 47.4%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 3% in the last 30 days.
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RBC Bearings Incorporated (RBC) : Free Stock Analysis Report
Graham Corporation (GHM) : Free Stock Analysis Report
Luxfer Holdings PLC (LXFR) : Free Stock Analysis Report
Tennant Company (TNC) : Free Stock Analysis Report
Helios Technologies, Inc (HLIO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
