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.
11. Symbotic Inc. (NASDAQ:SYM)
Symbotic Inc. (NASDAQ:SYM) is one of the best manufacturing stocks to invest in now. On February 2, Chief Executive Officer Rick Cohen reiterated that operational execution and product innovation continue to yield tangible economic benefits. Likewise, management expects solid growth this year, supported by rising deployments and expanding profitability.
The remarks follow solid first-quarter fiscal 2026 results as profitability exceeded expectations, driven by stronger margins. Revenue in the quarter was up 29% year over year to $630 million, and the net income was $13 million. Meanwhile, adjusted EBITDA surged to $67 million from $18 million in the first quarter of fiscal year 2025.
“We are off to a strong start this fiscal year,” said Rick Cohen, Symbotic Chairman and Chief Executive Officer. “Our operational execution and product innovation are yielding tangible economic benefits for both our customers and us.”
For the second quarter, Symbotic expects revenue to range between $650 million and $670 million. Adjusted EBITDA is expected to improve to between $70 million and $75 million.
Symbotic Inc. (NASDAQ:SYM) is an automation technology company that develops AI-powered robotic and software platforms to modernize supply chain logistics for large-scale retailers, wholesalers, and food/beverage companies. The company specializes in end-to-end warehouse automation, automating storage, retrieval, sorting, and palletizing to improve throughput, space utilization, and labor efficiency.
10. QuantumScape Corporation (NYSE:QS)
QuantumScape Corporation (NYSE:QS) is one of the best manufacturing stocks to invest in now. On February 4, QuantumScape Corporation (NYSE:QS) inaugurated its new Eagle Line at its San Jose facility, with automotive partners, government officials, and ecosystem collaborators attending the showcase. The Eagle Line represents a highly automated production blueprint, incorporating QS’s proprietary Cobra process to manufacture its solid‑state battery separator.
Once fully ramped, the Eagle Line will produce battery cells for customer sampling, testing, and integration, while also serving as a scalable model for licensing partners to manufacture at gigawatt‑hour levels. It will further act as a platform for advancing QS’s technology and process improvements at a meaningful scale.
CEO Dr. Siva Sivaram called the Eagle Line a major step toward commercialization, while COO Dr. Luca Fasoli highlighted the team’s achievement in scaling up production with greater automation, quality, and output. Together, they emphasized the Eagle Line’s role in meeting customer demand and demonstrating the viability of QS’s solid‑state battery technology.
QuantumScape Corporation (NYSE:QS) is a California-based company focused on developing next-generation solid-state lithium-metal batteries for electric vehicles (EVs) and other applications. Its technology is designed to replace traditional lithium-ion batteries.
9. Advanced Drainage Systems, Inc. (NYSE:WMS)
Advanced Drainage Systems, Inc. (NYSE:WMS) is one of the best manufacturing stocks to invest in now. On February 12, Advanced Drainage Systems, Inc. (NYSE:WMS) announced the pricing of a private offering of a $500 million of 5.375% senior unsecured notes due 2034.
The company plans to use net proceeds from the offering to refinance the outstanding balance under its existing senior secured credit facility. It also plans to redeem 5% senior notes due 2027, with the balance to be used for general corporate purposes.
Earlier on February 5, the company’s board of directors approved a quarterly dividend of $0.18, representing a 13% year-over-year increase. The dividend is to be paid on March 16, 2026, to shareholders of record as of March 2, 2026.
Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems, commented, “Today’s dividend announcement, as well as the new $1 billion stock repurchase authorization announced today, is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to strategically invest in our business.”
On February 5, Advanced Drainage Systems reported fiscal Q3 2026 results with net sales up slightly to $693.4 million, driven by growth in non‑residential construction despite weaker domestic pipe sales. Gross profit rose 7.3% to $259.2 million, while net income per diluted share climbed to $1.19. Adjusted EBITDA increased 9.3% to $209.2 million, reflecting stronger volumes and product mix.
Year‑to‑date, sales grew 3.7% to $2,373.6 million and EBITDA rose 8.8% to $774.9 million. The company completed its NDS acquisition in February, announced a new $1 billion stock repurchase program, and ended the quarter with $1.6 billion in liquidity and a leverage ratio of 0.5x. For fiscal 2026, ADS expects sales of $2.99–$3.04 billion and EBITDA of $930–$960 million.
Advanced Drainage Systems, Inc. (NYSE:WMS) is a leading manufacturer of high-performance thermoplastic corrugated pipe and water management products, focusing on stormwater and onsite septic wastewater solutions. It manufactures products for construction, infrastructure, and agriculture, while also operating as one of North America’s largest plastic recyclers.
8. Aptiv PLC (NYSE:APTV)
Aptiv PLC (NYSE:APTV) is one of the best manufacturing stocks to invest in now. On February 2, Aptiv PLC (NYSE:APTV) Chief Executive Officer Kevin Clark announced plans to spin off the EDS business as Versigent, resulting in two optimally positioned independent companies.
The divestment comes on the heels of Aptiv PLC delivering record revenue, operating income, and earnings per share, backed by a robust product portfolio. For the three months ended December 31, it delivered a 5% increase in revenue to $5.2 billion as full-year revenue increased 3% to $20.4 billion.
Adjusted net income in the fourth quarter came in at $402 million or $1.86 a share, compared to $411 million or $1.75 a share delivered the same quarter the prior year. Full-year adjusted net income totaled $1.73 billion or $7.82 a share, an improvement from $1.61 billion or $6.26 a share in the prior year. For the first quarter of 2026, Aptiv PLC expects net income of between $130 million and $170 million on net sales of between $4.95 billion and $5.15 billion.
Aptiv PLC (NYSE:APTV) is a global technology company that designs, develops, and manufactures software, hardware, and advanced electrical components for the automotive industry, focusing on making vehicles safer, greener, and more connected.
7. Ford Motor Company (NYSE:F)
Ford Motor Company (NYSE:F) is one of the best manufacturing stocks to invest in now. On February 24, Reuters reported that Ford Motor Company (NYSE:F) is recalling 412,774 Explorer vehicles in the U.S. due to rear suspension toe links that may fracture, according to the National Highway Traffic Safety Administration. The regulator warned that fractured toe links could cause a loss of steering control, prompting the recall.
On February 10, Ford announced its Q4 and full‑year 2025 results. Quarterly revenue came in at $45.9 billion, down 5% year‑over‑year, with a net loss of $11.1 billion. For the full year, revenue rose to $187.3 billion, while net loss totaled $8.2 billion. Adjusted EBIT was $6.8 billion, and operating cash flow reached $21.3 billion. Looking ahead, Ford expects 2026 adjusted EBIT of $8–10 billion and adjusted free cash flow of $5–6 billion.
CEO Jim Farley highlighted progress in lowering material and warranty costs, improving quality, and making strategic decisions to strengthen Ford’s future. CFO Sherry House emphasized improvements in the industrial system, a robust product roadmap, and disciplined capital efficiency as drivers of stronger results in 2026 and beyond.
Ford Motor Company (NYSE:F), headquartered in Dearborn, Michigan, is a global automaker employing about 169,000 people worldwide. Its Ford+ plan focuses on three customer‑centered segments: Ford Blue (gas and hybrid vehicles), Ford Model e (electric vehicles and software), and Ford Pro (commercial vehicles and services). The company also offers financial services through Ford Credit and develops connected technologies, such as BlueCruise, to enhance customer experiences.
6. Xylem Inc. (NYSE:XYL)
Xylem Inc. (NYSE:XYL) is one of the best manufacturing stocks to invest in now. On February 10, Xylem Inc. (NYSE:XYL) reiterated the impact of its underlying transformation, as reflected by record full-year revenue, adjusted EBITDA margin, and adjusted earnings per share. Likewise, the company expects resilient underlying demand as it continues to simplify its product portfolio to deliver essential technologies.
The remarks follow solid fourth-quarter and full-year 2025 results. Revenue in the quarter was up 6% to $2.4 billion, while orders increased 9% to $2.4 billion. Adjusted earnings per share in the quarter were up 20% to $1.42. Xylem posted record full-year revenue of $9 billion, up 6% year over year, as adjusted earnings per share increased 19% to $5.08.
“We achieved record full-year revenue, adjusted EBITDA margin, and adjusted EPS, supported by broad-based demand across our largest end markets. Healthy organic revenue and orders growth gave us solid momentum coming into 2026,” said Matthew Pine, Xylem’s CEO.
For the full year 2026, Xylem management expects revenue to range between $9.1 billion and $9.2 billion, representing a 1% to 3% increase. The full year 2026 adjusted EBITDA margin is expected to be between 22.9% and 23.3%.
Xylem Inc. (NYSE:XYL) is a global water technology provider that designs, manufactures, and services equipment to move, treat, analyze, and monitor water. Serving public utility, industrial, commercial, and residential sectors in over 150 countries, they focus on smart, sustainable solutions for the entire water cycle, including pumps, smart meters, treatment systems, and data analytics.
5. Parker-Hannifin Corporation (NYSE:PH)
Parker-Hannifin Corporation (NYSE:PH) is one of the best manufacturing stocks to invest in now. On February 19, 2026, Parker-Hannifin Corporation (NYSE:PH) presented at Citi’s Global Industrial Tech & Mobility Conference, outlining its strategic outlook.
The company emphasized strong aerospace growth, a recovery in industrial orders, and continued focus on operational excellence and acquisitions such as Meggitt, which have accelerated synergies.
At the conference, Parker-Hannifin reported double-digit aerospace growth for the fourth straight year, a 27% adjusted segment operating margin achieved ahead of schedule, and a 7% increase in North American industrial orders. For fiscal 2026, it guided 5% organic growth and forecasted adjusted EBITDA margins near 28%, with industrial margins reaching record levels despite prior headwinds.
Operational updates highlighted strength in construction, power generation, and HVAC markets, while Europe posted its first organic growth after seven quarters of decline. Asia Pacific benefited from electronics and semiconductor demand. The company’s Win Strategy continues to drive efficiency, with the integration of Meggitt exceeding expectations and the pending Filtration Group acquisition expected to deliver $220 million in synergies.
Parker-Hannifin Corporation (NYSE:PH), headquartered in Cleveland, Ohio, is a global leader in motion and control technologies. It designs and manufactures engineered components and systems for a wide range of industries, operating through its Diversified Industrial and Aerospace Systems segments. Founded in 1917, Parker-Hannifin is recognized as one of the largest industrial manufacturers worldwide.
4. Trane Technologies plc (NYSE:TT)
Trane Technologies plc (NYSE:TT) is one of the best manufacturing stocks to invest in now. On February 18, 2026, Trane Technologies plc (NYSE:TT) announced it had completed the acquisition of Stellar Energy Americas, a provider of modular data center cooling solutions. The deal, first revealed on December 2, 2025, strengthens Trane’s position in thermal management for data centers.
At Citi’s Global Industrial Tech & Mobility Conference on the same day, Trane highlighted its focus on innovation and growth. CEO Dave Regnery and CFO Chris Kuehn pointed to robust performance, with commercial HVAC in the Americas expected to grow 7%–8% in Q1 2026, while residential HVAC faces a 20% decline. The company reported revenue growth from $12.5 billion to $21.3 billion over five years, supported by acquisitions and strong demand in data center cooling.
Operational updates showed strength in construction, power generation, and HVAC markets, with Europe returning to growth after seven quarters of decline and Asia benefiting from electronics demand. Trane continues to invest in new products, acquisitions, and digital solutions like BrainBox, while projecting long‑term growth through AI integration and smarter building technologies.
Trane Technologies plc (NYSE:TT) designs, manufactures, sells, and services heating, ventilation, air conditioning (HVAC), and transport refrigeration solutions. Its products include air conditioners, heat pumps, chillers, coils, condensers, dehumidifiers, furnaces, and humidifiers, along with modular cooling systems, energy‑efficiency programs, and indoor air quality solutions. Through its Trane and Thermo King brands, the company combines advanced manufacturing with sustainability and innovation to deliver climate solutions for homes, buildings, and transportation worldwide.
3. TE Connectivity plc (NYSE:TEL)
TE Connectivity plc (NYSE:TEL) is one of the best manufacturing stocks to invest in now. On February 13, TE Connectivity plc (NYSE:TEL) entered into a $3 billion five-year senior revolving credit facility with Bank of America as administrative agent.
The inking of the $3 billion credit facility coincided with the termination of a $1.5 billion five-year unsecured revolver dated April 24, 2024. The new credit facility is poised to bolster the company’s liquidity and its commercial paper program.
In January, TE Connectivity reiterated that it is well-positioned to capitalize on a surge in demand for its artificial intelligence-related tools and products. A surge in investment in data centers and network equipment is increasingly benefiting the likes of TE Connectivity amid rising demand for AI-related tools and products.
In the first quarter of fiscal 2026, the company recorded orders of more than $5 billion, while revenues came in at $4.67 billion, against $4.53 billion expected. It now expects second-quarter adjusted profit of $2.65 per share, above consensus estimates of $2.63 per share.
TE Connectivity plc (NYSE:TEL) is a global industrial technology company that designs and manufactures a vast portfolio of sensors and connectivity solutions, including connectors, antennas, and cables, designed for harsh environments. They enable power, signal, and data distribution across automotive, industrial, communications, and medical industries.
2. Caterpillar Inc. (NYSE:CAT)
Caterpillar Inc. (NYSE:CAT) is one of the best manufacturing stocks to invest in now. On February 17, Caterpillar Inc. (NYSE:CAT) confirmed the acquisition of RPMGlobal Holdings Limited. The acquisition of the Australian-based mining software company is poised to expand the company’s portfolio of data-driven mining technology.
Caterpillar Inc. gains access to crucial software solutions that can help customers plan, operate, and manage mining sites more efficiently. RPMGlobal offers data-driven solutions across the various mining value chains to help mining companies address daily challenges.
“By combining RPMGlobal’s software capabilities with Caterpillar’s proven equipment and technology solutions, we will unlock new opportunities to help customers improve mine site performance, while advancing the future of mining technology in a way that is practical, scalable and grounded in their needs,” said Denise Johnson, group president, Caterpillar Resource Industries.
The acquisition comes on the heels of Caterpillar reporting record fourth-quarter sales of $19.1 billion. The increase was driven by strong demand for construction, mining, and power equipment, even as tariff uncertainty affected manufacturing costs. Similarly, the company entered the New Year with a record backlog and strong momentum.
Caterpillar Inc. (NYSE:CAT) is the world’s leading manufacturer of construction and mining equipment, diesel-electric locomotives, industrial gas turbines, and diesel/natural gas engines. It provides machinery, technology, and financing solutions for industries including infrastructure, energy, and resources.
1. The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) is one of the best manufacturing stocks to invest in now. On February 19, The Boeing Company (NYSE:BA) inked deals to sell almost 100 jets to Vietnamese carriers. The $30 billion worth of deals underscores the growing ties between the Asian nation and the US.
The US aircraft manufacturer is to sell up to 40 787-9 Dreamliners to Vietnam-based carrier Sun PhuQuoc Airways, valued at $22.5 billion. It is the largest-ever order for wide-body aircraft by a Vietnamese airline.
“Our partnership with Boeing establishes a strong foundation for building a world-class airline that operates in sync with the tourism and resort ecosystem Sun Group has developed,” Sun Group Chairman Dang Minh Truong said in a separate statement.
In addition, Boeing will sell 50 737-MAX Jets valued at about $8 billion and plans to invest more than $12 billion in 30 wide-bodies Boeing aircraft.
The Boeing Company (NYSE:BA) is a leading aerospace manufacturer that designs, develops, and sells commercial jetliners, defense systems, satellites, and space launch vehicles. As a major U.S. exporter, it provides services to airlines and government clients worldwide, including logistics, training, and maintenance.
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