Here is Why Hedge Funds Strongly Favor RBC Bearings (RBC)

RBC Bearings (NYSE:RBC) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On January 9, Michael Ciarmoli from Truist Financial raised his price target for RBC Bearings (NYSE:RBC) from $471 to $542, and reaffirmed his buy rating.

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Ciarmoli believes that the 2026 outlook for the Aerospace & Defense industry remains positive after a strong performance during the previous year. Such favorable sentiment is being driven by an increase in aircraft manufacturing and sustained aftermarket demand, providing a boost to both OE and AM segments. Despite fewer catalysts to spark growth, the analyst expects the sector to benefit from recapitalization, geopolitical developments, and replenishment needs that will keep demand steady.

On January 6, KeyBanc analyst Steve Barger raised his price target on RBC Bearings (NYSE:RBC) from $475 to $535 and assigned an Overweight rating. Barger has based his bullish stance on expectations of elevated revenues, improved margins, and a modestly lower tax bill.

RBC Bearings Incorporated (NYSE:RBC) develops and sells engineered precision bearings, components, and essential systems. Operating through Aerospace/Defense and Industrial segments, the company offers journal, roller, and spherical plain bearings. It also specializes in plain bearings with metal-to-metal or self-lubricating designs.

While we acknowledge the risk and potential of RBC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RBC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.