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.
10. Teledyne Technologies Incorporated (NYSE:TDY)
Number of Hedge Fund Holders: 47
Teledyne Technologies Incorporated (NYSE:TDY) is one of the best manufacturing stocks to buy according to hedge funds. On July 1, Teledyne Technologies announced its acquisition of assets from Maretron, which included its Octoplex, MPower, and MConnect product lines, from Littelfuse Inc. (NASDAQ:LFUS).
The acquisition enhances Teledyne’s Raymarine business by offering deeper integration and automation for boat builders and expanding product functionality for consumers while creating new business opportunities for Raymarine and its partners.
The acquisition also includes Maretron’s Florida office, allowing both Raymarine and Maretron to continue serving the strategic US Southeast boating market. This marks Teledyne’s 11th corporate carve-out transaction and its 2nd carve-out completed in 2025.
Teledyne Technologies Incorporated (NYSE:TDY) provides enabling technologies for industrial growth markets in the US and internationally. Raymarine is a part of Teledyne that specializes in high-performance marine electronics. Littelfuse Inc. (NASDAQ:LFUS) designs, manufactures, and sells electronic components, modules, and subassemblies in the Americas, the Asia-Pacific, and Europe.
9. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 53
Cummins Inc. (NYSE:CMI) is one of the best manufacturing stocks to buy according to hedge funds. On July 2, Cummins Inc. announced the launch of its new turbocharger specifically engineered for hydrogen internal combustion engines (H2 ICE). This marks a significant advancement for heavy-duty commercial on-highway applications in Europe.
Cummins Components and Software/CCS is a division of Cummins’ Components business segment and has already secured a contract to supply these H2 ICE turbochargers to a major European OEM. The H2 ICE turbocharger is designed to meet the increasing demand for efficient and sustainable solutions, supporting the transition to low-emission transportation.
It is specifically intended to power the first hydrogen internal combustion engine for heavy-duty on-highway applications in the European market. H2 ICE engine technology has been classified as zero-emission by the European Union/EU and is considered a promising bridge solution for reducing emissions. These H2 ICE engine platforms are also compliant with the upcoming Euro VII emission standards.
Cummins Inc. (NYSE:CMI) offers various power solutions worldwide. It operates through 5 segments: Engine, Distribution, Components, Power Systems, and Accelera.
8. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 53
Dover Corporation (NYSE:DOV) is one of the best manufacturing stocks to buy according to hedge funds. In June, Dover Corp announced the launch of Techcon’s new Side-by-Side/SBS Dispensing Cartridges. These cartridges are designed for precise metering of 2-component adhesives and sealants and are targeted at diverse industries such as electronics, industrial, medical device, and automotive.
The new product line is available in two sizes, 50 ml and 200 ml, and three standard mixing ratios: 1:1, 2:1, and 10:1, which increases versatility and compatibility with most standard cartridge guns. Made from polypropylene, these cartridges ensure a range of chemical compatibilities.
They are sold as complete sets, which include cartridges, caps, plungers, and O-rings, in quantities of 100 and 500. The new product line is expected to positively impact Dover Corp’s revenue streams but also pose challenges like the initial slow market adoption as industries test the product’s efficacy.
Dover Corporation (NYSE:DOV) provides equipment & components, consumable supplies, aftermarket parts, software & digital solutions, and support services worldwide.
7. Carrier Global Corporation (NYSE:CARR)
Number of Hedge Fund Holders: 54
Carrier Global Corporation (NYSE:CARR) is one of the best manufacturing stocks to buy according to hedge funds. On June 25, Carrier Global Corporation announced significant enhancements to its Abound Insights Assistant app. These updates are designed to empower building managers and facilities teams to proactively manage equipment operations and streamline maintenance activities.
The Abound Insights Assistant app provides actionable insights and recommendations for 25+ categories of equipment in commercial buildings, which include HVAC, refrigeration, and controls. These insights are driven by the award-winning Abound Insights AI platform, which analyzes equipment performance across a building portfolio and delivers recommendations directly to building managers via the app.
Some enhancements to the app include a more efficient “To-Do List” feature. Each “To-Do” task now also includes AI-generated repair recommendations and service history to assist technicians in resolving issues successfully.
Carrier Global Corporation (NYSE:CARR) provides intelligent climate and energy solutions in the US, Europe, the Asia Pacific, and internationally.
6. Trane Technologies (NYSE:TT)
Number of Hedge Fund Holders: 56
Trane Technologies (NYSE:TT) is one of the best manufacturing stocks to buy according to hedge funds. On June 30, Trane, which is a brand of Trane Technologies, announced the implementation of the first Dynamic Closed Loop/DCL geothermal system in the US.
This innovative system was installed at North Shore School District 112, which is located in the northern suburbs of Chicago, marking a step towards sustainable and efficient energy solutions for K-12 educational institutions. The North Shore School District 112 faces aging infrastructure and committed to environmental stewardship, and therefore partnered with Trane to explore geothermal energy.
DCL technology uses the superior heat transfer properties of flowing water, which requires less physical space, making it ideal for suburban school settings. This space-saving minimizes environmental disruption as well.
Trane Technologies (NYSE:TT) designs, manufactures, sells, and services solutions for heating, ventilation, air conditioning, and custom & transport refrigeration.
5. Johnson Controls International (NYSE:JCI)
Number of Hedge Fund Holders: 59
Johnson Controls International (NYSE:JCI) is one of the best manufacturing stocks to buy according to hedge funds. On July 8, Sensormatic Solutions, which is a retail solutions portfolio of Johnson Controls, announced the launch of new people-counting devices enabled with Re-Identification (Re-ID) technology and advanced deep learning AI capabilities.
This development provides retailers with more data-driven insights into shopper demographics, abandonment rates, shopper-only conversion rates, dwell times, and previously unseen movement patterns. The Re-ID technology uses complex algorithms to anonymize and identify individual visitors as they move throughout a property.
It relies on generic identifiers like clothing colors rather than personal identifiable information/PI, staff wearables, or facial recognition. This approach helps to protect shopper privacy and ensure compliance with regulations such as GDPR, while still allowing retailers to understand how and where visitors make shopping decisions.
Johnson Controls International (NYSE:JCI) engineers, manufactures, commissions, and retrofits building products and systems in the US, Europe, the Asia Pacific, and internationally. Sensormatic Solutions is the leading global retail solutions portfolio of Johnson Controls.
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
Honeywell International Inc. (NASDAQ:HON) is one of the best manufacturing stocks to buy according to hedge funds. On July 8, Honeywell announced it is exploring “strategic alternatives,” including a potential sale, for two of its business segments: Productivity Solutions & Service/PSS and Warehouse & Workflow Solutions/WWS.
This evaluation precedes Honeywell’s previously announced plan to split into three separate public companies by the end of 2026. The PSS division sells barcode scanners and other warehouse technology and generated over $1 billion in revenue in 2024. The WWS business provides software and products for warehouse and supply chain automation, which also achieved ~$1 billion in sales in 2024.
The evaluation of these alternatives will run parallel to the ongoing workstreams for the planned spin-offs and will not affect their timelines. Honeywell’s advanced materials business is expected to become its own company by early 2026, followed by the aerospace spin-off in H2 2026.
Honeywell International Inc. (NASDAQ:HON) engages in the aerospace technologies, industrial automation, building automation, & energy and sustainable solutions businesses internationally.
3. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 79
General Motors Company (NYSE:GM) is one of the best manufacturing stocks to buy according to hedge funds. On July 9, EnergyX, which is a lithium technology startup backed by General Motors, announced the acquisition of 35,000 acres in the Smackover formation from Pantera Lithium. This deal increases EnergyX’s holdings in the Smackover to ~47,500 acres.
The Smackover is an underground geological formation spanning from Florida to Texas and is known for its rich lithium brine deposits. The acquisition is valued at A$40 million (~$26.1 million) and includes A$6 million in cash and roughly 2.3 million shares in EnergyX, valued at A$14.50 ($9.47) each.
Pantera, which is an Australia-based company that initially agreed to buy this acreage in 2023, will become a minority shareholder in EnergyX once the deal closes, which is expected later this year. The acquisition highlights the growing interest in boosting US lithium production, despite current low market prices.
General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide.
2. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is one of the best manufacturing stocks to buy according to hedge funds. On July 8, Raytheon, which is an RTX business, demonstrated the autonomous capabilities of its Barracuda mine neutralization vehicle for the first time in an untethered and semi-autonomous operation.
The open water testing took place in Narragansett Bay, where the Barracuda proved its ability to autonomously navigate and operate independently underwater. In line with the Navy’s acquisition plan, Raytheon’s Barracuda is on track to achieve initial operational capability and low-rate initial production by 2030.
The Barracuda is the US Navy’s newest program of record for mine neutralization. It stands out as the first untethered and semi-autonomous mine neutralization system capable of tracking and identifying bottom, volume, and near-surface mines, while maintaining a “man-in-the-loop” for the final neutralization decision.
RTX Corporation (NYSE:RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government customers in the US and internationally.
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) is one of the best manufacturing stocks to buy according to hedge funds.On July 9, Boeing was awarded a $2.8 billion contract for the Evolved Strategic Satellite Communications/ESS program by the US Space Force. This program is a crucial space-based component of the US nuclear command, control, and communications/NC3 architecture.
The initial contract covers the development and production of two satellites, with options for two additional satellites in the future. The overall ESS Space Segment acquisition is projected to reach $12 billion, with future procurements potentially transitioning to fixed-price contracts.
The ESS space vehicles are designed to provide increased capacity, flexibility, reliability, and resilience compared to the strategic communications satellites currently in orbit. They will be equipped with flexible and resilient signals to protect against interruption or interception. The program modernizes the NC3 capability currently provided by the Advanced Extremely High Frequency/AEHF system.
The Boeing Company (NYSE:BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems, and services worldwide.
While we acknowledge the potential of BA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BA and that has 100x upside potential, check out our report about this cheapest AI stock.
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