2 Industrial Stocks Poised to Benefit from the U.S. Manufacturing Boom
After decades of seeing jobs move offshore, American manufacturing is in the early stages of a promising comeback.
Driven by supply chain disruptions, rising geopolitical tensions and major government incentives, companies across a number of sectors are bringing production back to U.S. soil.
A wave of tariff-driven policy chips – as well as existing legislation like the CHIPS Act and the Inflation Reduction Act – have accelerated this trend and a number of companies are moving quickly to take advantage.
Investors looking for powerful economic tailwinds – and less speculative potential growth – will find tremendous upside in the industrials sector.
Here are 2 industrial stocks right now poised to take advantage of this shift to U.S.-based manufacturing and potentially deliver long-term gains for investors as the U.S. rebuilds its industrial base.
Eaton Corporation plc (NYSE: ETN)
Eaton Corporation plc (NYSE: ETN) is a power management company deeply embedded in industrial electrification and data center infrastructure.
The company provides critical electrical components, power distribution systems and industrial automation solutions to help build and modernize domestic factories. As more manufacturing moves back to the U.S., demand for Eaton’s infrastructure is climbing.
By capitalizing on the global growth trends of electrification and digitalization, Eaton Corporation is helping to solve the world’s most urgent power management challenges and building a more sustainable society.
The company has revenues of nearly $25 billion as of 2024 and serves customers in more than 160 countries.
According to the 19 analysts covering the company, the average twelve-month price target for shares of ETN is $350.22, which represents a forecasted potential upside of 18.88% from the current share price.
Rockwell Automation, Inc. (NYSE: ROK)
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.
The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services
As companies look to offset labor costs and improve efficiency with smart, U.S.-based production, Rockwell’s solutions are in high demand. The company is already working with many large manufacturers building or expanding U.S. facilities.
Recently it was announced that Rockwell Automation and Amazon Web Services are collaborating to accelerate the digital transformation of the manufacturing industry.
By combining Rockwell’s operational technology with Amazon Web Services’ cloud services, manufacturers will gain scalable, secure, and flexible solutions to optimize asset performance and increase operational visibility. The collaboration aims to empower manufacturers to make faster decisions and optimize operations.
And according to the 19 analysts covering the company, the average twelve-month price target for shares of ROK is $297.11, which represents a forecasted potential upside of 20.09% from the current share price.
