The global manufacturing industry’s market size was estimated at $14.16 trillion in 2024, according to Cognitive Market Research. By 2031, this market size is expected to be $20.76 trillion, with a CAGR of 4.9%. The growth in this sector is driven by technological advancements and digital transformation. This year, the role of cybersecurity in manufacturing increased, particularly for small and medium-sized manufacturers/SMMs, as reported by the National Institute of Standards & Technology within the US Department of Commerce.
One notable change in this industry over the past few years has been the manufacturing sector’s evolution from traditional mass production to smart manufacturing. Traditional methods were standardized and specialized, and therefore lacked flexibility. However, smart manufacturing incorporates AI, IoT, and cloud computing to create connected, intelligent production ecosystems. With the increased adoption of IoT devices, AI, and cloud-based solutions, manufacturers are becoming more vulnerable to cyber threats. To combat these threats, SMMs invest in cybersecurity solutions like firewalls, encryption, and intrusion detection systems.
That being said, we’re here with a list of the 12 best manufacturing stocks to buy according to hedge funds.
A manufacturing space with a worker in the foreground, illuminated by a cutting tool on the leather belt strip.
Methodology
We sifted through the iShares US Manufacturing ETF to compile a list of the top manufacturing stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Manufacturing Stocks to Buy According to Hedge Funds
12. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 39
Ford Motor Company (NYSE:F) is one of the best manufacturing stocks to buy according to hedge funds. On July 10, Ford Motor announced a recall of 850,318 vehicles in the US due to a potential low-pressure fuel pump failure. This defect could lead to an engine stall and increase the risk of a crash and was highlighted by the US National Highway Traffic Safety Administration/NHTSA.
The NHTSA estimates that ~10% of the recalled vehicles have this specific defect. Before a fuel pump failure occurs, drivers might observe symptoms such as poor engine performance, such as misfiring, rough running, reduced power, or the illumination of the check engine light.
The NHTSA noted that failures are more likely to happen when fuel levels are low or during hot weather conditions. Ford has received at least 6 consumer complaints concerning loss of power due to pump failure, but the automaker is currently unaware of any accidents or injuries directly related to this defect.
Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans & cars, and Lincoln luxury vehicles worldwide.
11. Rockwell Automation Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 46
Rockwell Automation Inc. (NYSE:ROK) is one of the best manufacturing stocks to buy according to hedge funds. On June 26, Rockwell Automation announced that Sintetica, which is a Swiss pharmaceutical company, adopted its FactoryTalk PharmaSuite manufacturing execution system/MES.
The integration at Sintetica’s production facility in Switzerland aims to enhance quality, insights, and external interactions, as well as use quicker batch reviews to shorten time to market for its innovative therapies, such as drugs for anesthesia, pain management, intensive care, and neuromodulation.
Rockwell Automation consultants collaborated closely with Sintetica during the design and implementation phases. Following a pilot deployment on two lines, operator feedback has been highly positive, noting the benefits of data-driven insights in reducing time spent on monitoring, recording, and disseminating essential batch information and operational machine logs.
Rockwell Automation Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
