In this article, we’ll look at the 13 Best Manufacturing Stocks to Invest In Now.
US manufacturing activity rose at the fastest pace since 2022 in January. The Institute for Supply Management manufacturing index rose to 52.6, energized by solid growth in new orders and production. The significant increase from 47.9 is a clear indicator that US manufacturing activity is on the mend after languishing over the past three years.
Expansion in the manufacturing sector for the first time in 12 months affirms the resiliency of the US economy amid the uncertainty triggered by the trade war and US tariffs. Import tariffs have raised raw material prices, posing a major headwind to manufacturing activity.
“In January, U.S. manufacturing activity returned to expansion territory, with improvements in all five subindexes that make up the PMI® (New Orders, Production, Employment, Supplier Deliveries, and Inventories), though the Employment and Inventories indexes still remain in contraction,” ISM Chair Susan Spence said.
Global manufacturing is off to a solid start in 2026, as evidenced by the number of economies reporting higher production. PMI data sponsored by J.P. Morgan and compiled by S&P Global Market Intelligence indicate global manufacturing rose to a three-month high of 50.9 in January, affirming the improvement of business conditions.
While manufacturing has yet to hit the mark envisioned by President Donald Trump amid sweeping tariffs, some companies are leading the pack amid heightened activity.
Our Methodology
To compile a list of the Best Manufacturing Stocks to Invest In Now, we analyzed the iShares U.S. Manufacturing ETF and also used Finviz Screener. We settled on stocks engaged in manufacturing in various sectors. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Manufacturing Stocks to Invest In Now
13. USA Rare Earth, Inc. (NASDAQ:USAR)
USA Rare Earth, Inc. (NASDAQ:USAR) is one of the best manufacturing stocks to invest in now. On January 24, USA Rare Earth, Inc. (NASDAQ:USAR), received a significant boost in its bid to develop a rare-earth mineral site in Sierra Blanca, Texas. The United States government announced plans to take a 10% stake in the company as part of a $1.6 billion debt-and-equity investment package.
With the $1.6 billion debt-equity investment, the US government is to receive 16.1 million shares in the company and an additional 17.6 million shares. The investment is part of the Trump administration’s bid to secure critical minerals for national security.
To complement the federal support, the company has secured $1.5 billion in private investment from institutional backers. The investment brings a $3.1 billion capital injection to help accelerate the company’s mine-to-magnet projects in Texas.
“USA Rare Earth’s heavy critical minerals project is essential to restoring U.S. critical mineral independence,” said U.S. Secretary of Commerce Howard Lutnick. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”
The significant capital injection will help the company develop its domestic mine and magnet facility. The company has been developing the Sierra Blanca mine, which is slated to open in 2028. The company also owns a magnet manufacturing facility in Stillwater, Oklahoma.
USA Rare Earth, Inc. (NASDAQ:USAR) is a vertically integrated American company developing a domestic supply chain for rare earth magnets, spanning from mining to finished product. It focuses on producing neodymium and other heavy rare earth elements at its Round Top Mountain project in Texas and on manufacturing permanent magnets in Stillwater, Oklahoma.
12. NuScale Power Corporation (NYSE:SMR)
NuScale Power Corporation (NYSE:SMR) is one of the best manufacturing stocks to invest in now. On February 12, NuScale Power Corporation (NYSE:SMR) inked a strategic partnership with Oak Ridge National Laboratory to enhance the use of artificial intelligence.
The two are joining forces to leverage AI to explore how fuel could be efficiently and effectively managed across multiple reactors. Nuscale already uses proven off-the-shelf fuel assemblies, offering a unique opportunity to enhance fuel efficiency in up to 12 reactors. The US Department of Energy’s Gateway for Accelerated Innovation in Nuclear Gain has already awarded funding to the two partners in the research program.
“With the tremendous focus on growing energy consumption in the U.S. and around the world, NuScale is committed to bringing clean, reliable energy to our customers, and this strategic partnership with ORNL will use cutting-edge computational science to create even more energy efficient fuel management solutions for our multi-module plants,” said John Hopkins, NuScale President and Chief Executive Officer.
NuScale Power Corporation (NYSE:SMR) is a manufacturing company that designs and develops advanced small modular reactor (SMR) nuclear technology to provide scalable, safe, and carbon-free energy.
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