In this article, we will be taking a look at the 13 Best Manufacturing Stocks to Buy Right Now.
Cognitive Market Research estimates the value of the global manufacturing market at $14.16 trillion in 2024. At a CAGR of 4.9%, this market is projected to reach $20.76 trillion by 2031. Digital advancements and technological breakthroughs are driving the growth of this sector. Specifically for SMMs (small and medium-sized manufacturers), cybersecurity has become more important in manufacturing this year, according to the US Department of Commerce’s National Institute of Standards & Technology.
The transition of the manufacturing sector from conventional mass production to smart manufacturing in recent years has been a significant shift in this business. Conventional approaches lacked flexibility since they were specialized and standardized. Nevertheless, cloud computing, IoT, and AI are all incorporated into smart manufacturing to build intelligent, networked production ecosystems. The growing use of cloud-based solutions, AI, and IoT devices is making manufacturers more susceptible to cyberattacks. SMMs spend money on cybersecurity solutions, including intrusion detection systems, firewalls, and encryption, to counter these dangers.
That being said, we’re here with a list of the best manufacturing stocks to buy right now.
Our Methodology
For our methodology, we began by screening manufacturing stocks listed in the iShares U.S. Manufacturing ETF. From this pool, we identified the top 13 stocks by portfolio weight and ranked them based on the total number of hedge fund holders as of Q2 2025, using data sourced from the Insider Monkey database. In cases where two stocks had the same number of hedge fund holdings, their ETF portfolio weight was used as a tiebreaker to determine the ranking.
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).
Here is our list of the 13 best manufacturing stocks to buy right now.
13. PACCAR Inc (NASDAQ:PCAR)
Number of Hedge Fund Holders: 40
PACCAR Inc. (NASDAQ:PCAR) is making significant strides in digital transformation and autonomous vehicle technologies, aiming to enhance fleet efficiency, predictive maintenance, and customer support. In September 2025, the company highlighted partnerships and investments in AI, connectivity, and data systems as key drivers of long-term growth amid fluctuations in traditional truck demand. The stock stands thirteenth on our list among the best manufacturing stocks.
Alongside its technology push, the firm declared a quarterly cash dividend of $0.33 per share, reflecting strong financial health and ongoing shareholder returns. The company also rolled out new infotainment and connectivity features for Peterbilt trucks, including wireless Apple CarPlay, embedded navigation, and upgraded in-cab systems to improve driver experience and operational efficiency.
Product innovation continues with advanced battery-electric vehicles, including the Kenworth T680E and T880E equipped with the proprietary PACCAR ePowertrain, as well as CARB-compliant MX-13 engines designed to meet California’s strict emissions standards. Strategic investments are further supporting the ramp-up of DAF electric truck production and the expansion of testing and manufacturing facilities.
Looking ahead, PACCAR Inc. (NASDAQ:PCAR) plans up to $800 million in capital expenditures for 2025 to address regulatory requirements and increase vocational truck capacity. Leadership changes scheduled for January 2026 are expected to strengthen the corporation’s innovation agenda and guide its growth strategy, positioning the business at the forefront of sustainable and technology-driven trucking solutions.
12. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is accelerating its transformation with major moves in electric vehicles, digital manufacturing, and corporate innovation. Recently, the company unveiled the Henry Ford II World Center in Dearborn, set to replace its historic Glass House headquarters. The new campus is designed to foster collaboration among engineering, design, and technology teams, enabling faster innovation and supporting the business’s transition from legacy gasoline models to flexible electric, hybrid, and internal combustion vehicles.
The automaker also announced its Universal EV Platform and a forthcoming $30,000 battery-electric pickup, planned for 2027. The vehicle leverages a modular “assembly tree” process, reducing assembly time by up to 40% while improving cost efficiency and production flexibility. Cars built on the platform will be Ford Motor Company (NYSE:F)’s first software-defined vehicles, capable of over-the-air updates, app integration, and decoupled hardware-software systems, addressing prior manufacturing inefficiencies and battery cost challenges.
To complement its product and operational upgrades, the corporation launched a global brand campaign, “Ready Set Ford,” aimed at boosting customer loyalty amid a record year for recalls. The campaign emphasizes quality improvement and customer retention as the company balances innovation with operational challenges.
Looking ahead, Ford Motor Company (NYSE:F)’s combination of modular manufacturing, software-defined EVs, and a collaborative headquarters positions the company for long-term competitiveness in the global automotive market.
11. TE Connectivity PLC (NYSE:TEL)
Number of Hedge Fund Holders: 47
TE Connectivity PLC (NYSE:TEL), a global leader in connectivity and sensor solutions, serves transportation, industrial, medical, energy, and data communications markets across 130 countries. The company’s components enable the distribution of power, data, and signals for next-generation vehicles, networks, and automated factories, positioning TEL at the forefront of industrial and digital transformation.
In 2025, TE Connectivity PLC (NYSE:TEL) demonstrated strong financial momentum. Third-quarter results exceeded Wall Street expectations, with double-digit sales and earnings growth driven by robust demand in industrial segments. In September 2025, the business’s most notable update was the board’s declaration of a regular quarterly cash dividend of $0.71 per ordinary share, payable in December, underscoring the company’s ongoing commitment to shareholder returns.
Strategically, TEL expanded its North American energy footprint with the $2.3 billion acquisition of Richards Manufacturing. The move strengthens the firm’s industrial and energy segments, combining complementary electrical product lines and supporting the modernization of underground utility networks, reinforcing TEL’s position among the best manufacturing stocks in today’s market.
Innovation remains central to TE Connectivity PLC (NYSE:TEL)’s growth strategy. Recognized on the 2025 Clarivate Top 100 Global Innovators list and named among the World’s Most Ethical Companies for the 11th consecutive year, the company is actively integrating artificial intelligence and automation technologies into its operations. This focus positions the corporation as a key player in factory digitalization, robotics, and long-term industrial innovation.
10. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 51
Parker-Hannifin Corporation (NYSE:PH), a global leader in motion and control technologies, is gaining attention as one of the top manufacturing stocks to watch. Known for serving aerospace, industrial, and mobile machinery markets, the company combines more than a century of innovation with financial stability and one of the longest dividend increase streaks in the S&P 500, now at 69 years.
In September 2025, PH finalized its $1 billion acquisition of Curtis Instruments, a key player in motor speed controllers, power conversion devices, and instrumentation for electric vehicles and mobile machinery. Curtis, projected to generate $320 million in 2025 sales, has been integrated into Parker-Hannifin Corporation (NYSE:PH)’s Motion Systems Group, expanding its electrification and hybrid technology offerings. The move aligns with growing global demand for sustainable, decarbonized solutions and strengthens PH’s positioning in the rapidly evolving industrial landscape.
Financially, the company delivered record results for fiscal 2025. Fourth-quarter sales reached $5.2 billion, reflecting 2% organic growth, while net income climbed 18% to $923 million. Adjusted earnings per share rose 7% for the year to $27.33. Parker-Hannifin Corporation (NYSE:PH) also declared a quarterly dividend of $1.80 per share, marking its 301st consecutive payout and reinforcing its shareholder-focused policies. Additionally, the company expanded its share repurchase authorization to cover up to 20 million shares, signaling confidence in long-term growth.
9. AMETEK, Inc. (NYSE:AME)
Number of Hedge Fund Holders: 53
AMETEK, Inc. (NYSE:AME) is a leading global provider of industrial technology solutions. It continues to strengthen its position through operational excellence, innovation, and strategic acquisitions.
In September 2025, AME declared its regular quarterly dividend of $0.31 per share, payable September 30 to shareholders of record as of September 15. The dividend underscores management’s confidence in cash flow and the company’s long-term growth model.
Financially, the corporation is showing robust momentum. For the third quarter of 2025, the company set EPS guidance at $1.72 to $1.76 and raised its full-year outlook to a range of $7.06 to $7.20 per share, following record results in the second quarter. Analysts have responded positively with upgrades and higher price targets, reflecting optimism around the company’s performance trajectory and solidifying its place among the best manufacturing stocks for investors.
AMETEK, Inc. (NYSE:AME)’s strategy centers on technology innovation and acquisitions, complemented by disciplined operations and global expansion. This approach has allowed the company to maintain leadership in specialized industrial technology markets while delivering steady earnings growth and reliable shareholder returns.
8. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 56
Trane Technologies plc (NYSE:TT), a global leader in climate innovation, has strengthened its position in sustainable HVAC and refrigeration solutions with new AI-driven products and strong financial performance. Over the past five years, the company has transformed into a focused climate business, achieving a 12% compound annual revenue growth rate and delivering a 286% total shareholder return, outpacing the S&P 500.
In September 2025, the business announced two major AI-powered offerings, AI Control and ARIA, developed by its BrainBox AI Lab, which was acquired earlier this year. AI Control integrates HVAC optimization to cut heating and cooling energy costs by up to 25% while reducing carbon emissions by 40%. ARIA, a multilingual AI agent, enables facility teams to access real-time insights and recommendations for smarter building management. These innovations support the firm’s mission to advance energy efficiency and decarbonization in commercial buildings and refrigerated transport.
Trane Technologies plc (NYSE:TT)’s sustainability efforts remain central, with 237 million metric tons of customer carbon reductions since 2019 and a target of one billion metric tons by 2030 through its “Gigaton Challenge.” Financially, the corporation delivered record Q2 2025 bookings of $5.6 billion, an 18% increase in adjusted EPS year-over-year, and raised its full-year outlook to 9% revenue growth and approximately $13.05 EPS.
While management flagged a potential 20% decline in the residential HVAC market in Q3, about 15% of its business, investor confidence remains strong. Trane Technologies plc (NYSE:TT) also reinforced its shareholder commitment with a $0.94 quarterly dividend declared for September 2025.
7. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 59
Cummins Inc. (NYSE:CMI), a global leader in power solutions spanning diesel, natural gas, electric, and hybrid technologies, is strengthening its push into clean energy through new strategic partnerships and shareholder-focused initiatives. The company operates across five segments, Engine, Components, Distribution, Power Systems, and Accelera by Cummins, under its Destination Zero strategy to drive decarbonization.
In September 2025, Cummins Inc. (NYSE:CMI) signed a memorandum of understanding with Komatsu Ltd. to co-develop hybrid powertrains for heavy mining equipment, with Wabtec providing drive systems. This collaboration highlights the corporation’s commitment to low-emission, electrified solutions and its broader role in transitioning heavy industries toward sustainable energy.
The business also raised its quarterly dividend by 10% to $2.00 per share, payable in September, marking 16 consecutive years of dividend growth and reflecting confidence in strong cash flow.
Financial results for Q2 2025 were mixed, with revenue declining 2% year-over-year to $8.6 billion, while net income rose to $890 million. Despite cyclical softness in truck markets, Cummins Inc. (NYSE:CMI) has benefited from rising demand in power generation and backup systems, particularly from data centers. Investor sentiment remains positive, with the stock trending upward and reinforcing its standing among the best manufacturing stocks as the company advances its clean energy transition.
6. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 59
Deere & Company (NYSE:DE), the iconic John Deere brand and a global leader in agricultural and construction machinery, is navigating a slowdown in farm demand while positioning itself for long-term growth through technology and manufacturing investments.
In September 2025, the company reported weaker fiscal third-quarter results, with declines in sales and net income as farmers cut spending in response to lower crop prices and macroeconomic pressures. The business also expects tariffs to weigh on earnings by about $600 million this year and has initiated workforce reductions to manage costs.
Despite near-term headwinds, Deere & Company (NYSE:DE) is committing $20 billion over the next decade to strengthen U.S. manufacturing and accelerate innovation. Projects include a $70 million excavator factory in North Carolina and factory expansions to produce advanced machinery such as X9 combines with greater harvesting capacity and AI-enabled See & Spray sprayers for precision weed control.
The company’s Smart Industrial Strategy underscores its focus on autonomous and connected equipment. At CES 2025, the company showcased autonomous tractors and dump trucks equipped with advanced sensors to improve efficiency and address labor shortages in agriculture and mining.
To support this transformation, Deere & Company (NYSE:DE) has restructured leadership with new appointments, including Deanna Kovar as President of Worldwide Agriculture & Turf: Production and Precision Ag, and Justin Rose as President of Small Agriculture and Turf globally. Alongside Cory Reed, who now oversees lifecycle solutions and supply chains, the team aims to enhance customer value through smarter, connected equipment.
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON), a global leader in aerospace, industrial automation, energy solutions, and emerging technologies, is sharpening its focus on high-growth sectors with major developments this September.
On September 4, 2025, the company announced a $600 million equity capital raise for its quantum computing subsidiary, Quantinuum, valuing it at $10 billion pre-money. The round drew backing from investors including Quanta Computer, NVIDIA’s NVentures, JPMorgan Chase, Mitsui, and Amgen. The funds will accelerate development of Quantinuum’s next-generation quantum system, Helios, expected to debut later this year, while advancing progress toward fault-tolerant universal quantum computing.
Honeywell International Inc. (NASDAQ:HON) is also moving forward with the planned spin-off of its Solstice Advanced Materials business. This month, the company priced senior notes to support the separation, part of a broader restructuring strategy aimed at unlocking value and focusing on innovation-driven sectors.
Despite a modest stock dip over the past month, Honeywell International Inc. (NASDAQ:HON) has delivered a 47.4% gain over the past five years. Analysts remain optimistic, projecting around 4.6% annual revenue growth supported by expansion into LNG, data centers, and industrial automation. Operational efficiencies and share buybacks are expected to further support long-term earnings growth, reinforcing HON’s reputation as one of the best manufacturing stocks even as markets weigh geopolitical and restructuring uncertainties.
4. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 71
RTX Corporation (NYSE:RTX), a leading aerospace and defense company, reported solid second-quarter 2025 results, driven by strength across its Pratt & Whitney, Collins Aerospace, and Raytheon defense segments. Sales rose 9% year-over-year to $21.6 billion, with adjusted earnings per share up 11% to $1.56. The company’s backlog climbed 15% to $236 billion, split between $144 billion in commercial contracts and $92 billion in defense. RTX also returned $0.9 billion to shareholders and raised its dividend by 8%.
While RTX Corporation (NYSE:RTX) lifted its 2025 sales outlook to $84.75–$85.5 billion, it trimmed adjusted EPS guidance to $5.80–$5.95 due to an estimated $500 million in tariff-related cost pressures, primarily from steel and aluminum.
On the technology front, Pratt & Whitney is developing a new family of engines for munitions and collaborative combat aircraft, targeting thrust between 500 and 1,800 pounds. Meanwhile, RTX Corporation (NYSE:RTX)’s Advanced Electronic Warfare prototype for the Navy’s F/A-18E/F Super Hornet passed a key review milestone, marking progress in next-generation strike fighter capabilities.
3. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 71
General Motors Company (NYSE:GM), a leading U.S. automaker, is making strategic adjustments as it navigates evolving consumer demand and policy changes in the electric vehicle (EV) market.
In early September 2025, General Motors Company (NYSE:GM) announced temporary production cuts at its Spring Hill, Tennessee EV plant, halting assembly of Cadillac Lyriq and Vistiq SUVs through December and scaling back production into early 2026. The move follows weaker-than-expected demand after the expiration of the $7,500 federal EV tax credit at the end of September.
The announcement came shortly after GM reported record U.S. EV sales in August, with over 21,000 units sold across popular models like the Chevy Equinox EV, Cadillac Lyriq, and GMC Sierra EV. While sales momentum has slowed, the corporation remains confident in its long-term EV growth, supported by demand for affordable models such as the Chevy Equinox EV under $35,000 and the upcoming Chevy Bolt EV near $30,000.
Strategically, the firm is bolstering its competitive edge through a partnership with Hyundai to co-develop new vehicles, including compact SUVs, sedans, pickups, and an electric van for North America. The collaboration focuses on shared R&D and sourcing of key materials like batteries and steel to improve efficiency and cost competitiveness, further cementing GM’s place among the best manufacturing stocks to watch in the EV space.
In a symbolic shift, General Motors Company (NYSE:GM) also announced plans to move its headquarters from Detroit’s Renaissance Center to Woodward Avenue, underscoring a new era as the company balances internal combustion and EV production. CEO Mary Barra emphasized resilience amid supply chain disruptions and regulatory changes while reaffirming GM’s commitment to delivering vehicles that appeal to a broad range of consumers.
2. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 74
Eaton Corporation plc (NYSE:ETN), a global leader in power management solutions, reported record-breaking second-quarter 2025 results, underscoring strong momentum across its core markets. Earnings per share hit $2.51, with adjusted EPS of $2.95, up 8% from last year. Sales climbed 11% year-over-year to $7.0 billion, driven by 8% organic growth alongside acquisitions and favorable currency impacts. Segment margins reached a record 23.9%, while backlog increased 17%, signaling sustained demand.
The Electrical Americas segment stood out, generating $3.4 billion in sales, a 16% jump from Q2 2024, fueled by robust demand in electrification markets. CEO Paulo Ruiz highlighted digitalization, electrification, reindustrialization, and rising defense spending as key growth drivers positioning Eaton Corporation plc (NYSE:ETN) to benefit from long-term industrial and infrastructure megatrends.
In July, ETN announced the acquisition of Resilient Power Systems Inc., a North American firm specializing in solid-state transformer technology. The deal is expected to strengthen Eaton Corporation plc (NYSE:ETN)’s role in the fast-growing electric vehicle ecosystem and expand its applications in areas such as data centers, port electrification, and battery energy storage.
1. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 81
Amphenol Corporation (NYSE:APH) tops our list for being one of the best manufacturing stocks. It is a global leader in electrical, electronic, and fiber optic connectors, serving industries from aerospace and automotive to data centers and telecommunications.
The company reported a strong Q2 2025, with sales up 57% to $5.65 billion, including 41% organic growth. GAAP diluted EPS hit $0.86, a 110% increase, while Adjusted EPS rose 84% to $0.81. Q3 guidance anticipates $5.4–5.5 billion in sales and $0.77–0.79 in adjusted EPS, reflecting continued momentum.
Growth is bolstered by strategic acquisitions. In 2025, the business acquired Narda-MITEQ and plans to buy CommScope’s Connectivity and Cable Solutions segment for $10.5 billion and Trexon for $1 billion. These moves expand its reach in IT, communications, industrial infrastructure, and high-reliability interconnect markets, enhancing future revenue and earnings.
Rising demand from AI-driven data centers further fuels growth, with the AI portfolio generating an estimated $1.15 billion in Q2. APH’s high-speed, low-latency interconnect systems make it a key supplier for AI applications.
The stock hit a 52-week high above $120 in September 2025, returning 88.5% over the past year. With 21 consecutive years of dividend growth at $0.165 per share, Amphenol Corporation (NYSE:APH) appeals to both growth and income investors, cementing its strong position in technology and industrial sectors.
While we acknowledge the potential of APH 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 APH and that has 100x upside potential, check out our report about this cheapest AI stock.
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