Best manufacturing stocks to invest in 2026

The manufacturing sector remains a critical engine of global economic growth, blending innovation, scale, and operational excellence. With advancements in automation, electrification, and sustainability, top manufacturing companies are leading the way into the future.

Celestica leads as a global electronics manufacturing services provider, delivering design, engineering, and supply chain solutions to technology companies worldwide. Powell Industries delivers critical electrical infrastructure and power distribution equipment, supporting data centers and industrial facilities globally. Power Solutions specializes in custom-engineered power systems and engines for industrial and on-road applications, capitalizing on electrification trends.

Investors seeking durable, well-run businesses with strong cash flow should pay attention to this segment. These manufacturing leaders stand out for operational discipline and exposure to long-term infrastructure, electrification, and automation demand in 2026.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Celestica (NYSE:CLS)

    Celestica Incorporated is a global leader in electronics manufacturing services, providing design, engineering, and supply chain solutions to companies across various industries. Founded in 1994 and headquartered in Toronto, Canada, the company has grown into a key player delivering high-quality, customized solutions to leading global brands. Over the years, Celestica has established itself as a trusted partner for companies seeking comprehensive manufacturing and supply chain expertise.

    Celestica`s core business revolves around offering comprehensive end-to-end product lifecycle solutions, including design, prototyping, manufacturing, and after-market services for global customers. It serves industries such as aerospace, defense, healthcare, industrial, and communications, providing critical components and systems that enhance performance and efficiency. With a focus on innovation, sustainability, and operational excellence, Celestica helps its clients accelerate time-to-market while optimizing costs and maintaining high reliability.

    Celestica financial statements

    Analysts recommendation: 1.35

    Financial Health

    • Return on assets (ROA): 10.13%
    • Return on equity (ROE): 40.49%
    • Return on investment (ROI): 28.06%

    Profitability

    • Gross margin: 12.06%
    • Operating margin: 8.78%
    • Net profit margin: 6.72%

    Growth

    • EPS (past 5 years): 72.45%
    • EPS (current): 7.17
    • EPS estimate (next quarter): 2.05
    • EPS growth (this year): 99.9%
    • EPS growth (next year): 43.23%
    • EPS growth (next 5 years): 40.46%
    • EPS growth (quarter-over-quarter): 78.61%
    • Sales growth (past 5 years): 16.6%
    • Sales growth (quarter-over-quarter): 43.6%

    💡 Why invest in Celestica?

    Celestica shows strong electronics manufacturing capabilities worldwide, supporting complex high-reliability programs globally:

    • Technology Growth Exposure: Celestica benefits directly from the expansion of cloud computing, 5G networks, and IoT devices through its manufacturing partnerships with leading technology companies across multiple high-growth sectors.
    • Complex Manufacturing Capabilities: The company specializes in high-mix, low-volume production that requires advanced technical capabilities, providing competitive advantages in serving demanding customers with sophisticated requirements.
    • Global Network Operations: Celestica operates plants on several continents, providing geographic diversification and resilient supply chains that mitigate disruptions, optimize costs, and improve delivery performance for global customers.
    • Diverse Customer Portfolio: The company serves communications, enterprise, aerospace, defense, industrial, and healthcare sectors, reducing dependence on any single market and strengthening revenue stability across cycles and geographies.

    🐌 Key considerations before investing in Celestica

    Celestica faces margin pressure in electronics manufacturing as pricing competition and efficiency demands challenge profitability:

    • Customer Concentration Risk: A significant portion of revenue comes from a limited number of large technology customers, creating concentration risk if major accounts reduce orders or shift production to alternate partners during demand downturns.
    • Technology Evolution Challenges: Staying relevant requires continuous investment in new technologies, automation, and workforce training, with execution risk if initiatives fail to deliver expected productivity and capability gains.
    • Geopolitical Risk Exposure: Global operations expose the company to trade tensions, tariffs, regulatory changes, and currency movements, which can disrupt supply chains, increase costs, and complicate planning across jurisdictions globally.
    • Competitive Pressure Risk: Electronics manufacturing services are highly competitive, with persistent pricing pressure and narrowing margins, requiring continuous efficiency improvements, lean programs, and automation to maintain profitability.

    Final thoughts on Celestica

    Celestica offers exposure to technology megatrends through a diversified customer base and global manufacturing capabilities, presenting a solid investment opportunity in EMS. The company`s expertise in complex, high-mix manufacturing provides durable advantages when serving demanding customers across industries and mission-critical global programs. However, investors should be aware of the concentration risk from major customers and the ongoing pressure from intense competition in the EMS industry.

  • Powell Industries (NYSE:POWL)

    Powell Industries is a leading provider of custom-engineered electrical equipment and services for the energy, industrial, and utility sectors. Founded in 1947 and headquartered in Houston, Texas, the company specializes in manufacturing complex power distribution and control solutions. With a strong presence in North America and international markets, Powell Industries serves industries such as oil and gas, petrochemicals, mining, and renewable energy.

    The company`s core business revolves around designing and producing switchgear, motor control centers, bus duct systems, and other power management solutions. Powell Industries focuses on delivering highly reliable and safe electrical infrastructure that ensures operational efficiency and minimizes downtime. By integrating advanced automation and engineering expertise, the company continues to support critical industries with innovative and robust power solutions.

    Powell Industries financial statements

    Analysts recommendation: 2.33

    Financial Health

    • Return on assets (ROA): 14.02%
    • Return on equity (ROE): 32.16%
    • Return on investment (ROI): 27.99%

    Profitability

    • Gross margin: 30.18%
    • Operating margin: 17.03%
    • Net profit margin: 16.82%

    Growth

    • EPS (past 5 years): 59.82%
    • EPS (current): 15.39
    • EPS estimate (next quarter): 3.96
    • EPS growth (this year): 18.9%
    • EPS growth (next year): 11.02%
    • EPS growth (next 5 years): 13.21%
    • EPS growth (quarter-over-quarter): 18.95%
    • Sales growth (past 5 years): 16.32%
    • Sales growth (quarter-over-quarter): 4%

    💡 Why invest in Powell Industries?

    Powell Industries offers several potential advantages for investors seeking exposure to the industrial and energy sectors:

    • Critical Infrastructure Provider: The company`s products serve as critical components in power distribution and control systems, making it a vital part of the energy infrastructure that supports essential industrial operations worldwide.
    • Broad Customer Portfolio: Powell Industries serves a wide range of industries including oil and gas, petrochemicals, mining, and renewable energy sectors, effectively reducing reliance on any single market segment.
    • Innovation Focus Strategy: The company consistently invests in research and development initiatives to enhance product offerings, develop advanced automation solutions, and meet evolving customer needs in the electrical equipment market.
    • International Footprint Reach: With operations spanning multiple countries and international markets, Powell Industries can effectively capitalize on growth opportunities in various regions while diversifying geographic revenue sources.

    🐌 Key considerations before investing in Powell Industries

    Powell Industries faces significant cyclical demand pressures in the power distribution equipment sector continuously:

    • Industrial Cycle Exposure: The company`s performance experiences significant influence from economic cycles, as industrial activity levels and capital expenditure decisions directly impact demand for electrical equipment.
    • Market Competition Intensity: The electrical equipment market operates with intense competition from both established industry players and new entrants, creating pressure on pricing, market share, and profit margins.
    • Commodity Input Volatility: Fluctuations in the prices of raw materials including copper, steel, and other essential components can significantly impact manufacturing costs and overall profitability during supply disruptions.
    • Regulatory Compliance Requirements: The electrical industry operates under various safety, environmental, and technical regulations that can affect product design specifications, manufacturing processes, and operational costs.

    Final thoughts on Powell Industries

    Powell Industries` focus on critical infrastructure, diversified customer base, and commitment to innovation make it an attractive investment for those seeking exposure to the industrial and energy sectors. However, economic cycles, competition, commodity prices, and regulatory factors necessitate careful consideration. Thorough research on Powell Industries` product pipeline, market expansion plans, and financial performance is crucial before investing.

  • Modine Manufacturing (NYSE:MOD)

    Modine Manufacturing Company is a diversified thermal management company that designs and manufactures heat transfer and storage products for diverse applications. Founded in 1916 and headquartered in Racine, Wisconsin, company operates through two primary segments: Vehicular Thermal Solutions and Performance Technologies. Modine serves customers in automotive, commercial vehicle, off-highway, industrial, and HVAC markets, providing solutions for engine cooling, power electronics cooling, and climate control systems.

    Modine has been strategically focusing on higher-growth markets, particularly in electric vehicle thermal management, data center cooling, and commercial HVAC applications. The company has invested to expand capabilities in power electronics cooling and battery thermal management, positioning to benefit from electrification across industries. Modine`s global footprint spans North America, Europe, and Asia, enabling service to a diverse customer base with local production and support.

    Modine Manufacturing financial statements

    Analysts recommendation: 1.11

    Financial Health

    • Return on assets (ROA): 9.89%
    • Return on equity (ROE): 10.02%
    • Return on investment (ROI): 5.41%

    Profitability

    • Gross margin: 23.85%
    • Operating margin: 11.91%
    • Net profit margin: 3.4%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 1.82
    • EPS estimate (next quarter): 1.58
    • EPS growth (this year): 20.64%
    • EPS growth (next year): 50.84%
    • EPS growth (next 5 years): 34.18%
    • EPS growth (quarter-over-quarter): -218.01%
    • Sales growth (past 5 years): 5.51%
    • Sales growth (quarter-over-quarter): 30.5%

    💡 Why invest in Modine Manufacturing?

    Modine makes thermal management and fluid handling solutions for global markets, serving critical applications with lifecycle value:

    • Essential Thermal Solutions: Modine provides critical heating and cooling systems that are fundamental requirements for buildings, vehicles, and industrial equipment, creating consistent demand across multiple market cycles and seasons.
    • Sustainability Leadership Focus: The company prioritizes energy-efficient thermal management solutions that align with growing demand for green buildings, electric vehicle infrastructure, and environmentally conscious industrial practices.
    • Diversified Market Exposure: Modine serves automotive, commercial HVAC, industrial equipment, and data center markets, reducing dependence on any single industry while capturing growth across multiple sectors, while balancing cyclicality.
    • Global Manufacturing Footprint: With operations in North America, Europe, and Asia, Modine gains diversification, local market access, and effective service for multinational customers, supporting programs with flexible capacity globally.

    🐌 Key considerations before investing in Modine Manufacturing

    Modine faces economic cycles and intense global competition, impacting visibility, planning, and execution across key markets:

    • Competitive Market Pressure: The thermal management industry includes global and regional competitors vying for share, pressuring margins and requiring continuous innovation to maintain product leadership and customer satisfaction over time.
    • Building Cycle Exposure: Modine building sector sales correlate with construction activity and economic conditions, making the company vulnerable to downturns in commercial and residential building markets, especially during prolonged downturns.
    • Commodity Price Volatility: Fluctuations in steel, aluminum, and other commodity prices directly impact manufacturing costs and profitability, requiring effective supply chain management and pricing strategies, pressuring margins without hedging.
    • Compliance Cost Challenges: The HVAC and automotive industries face evolving energy efficiency standards and safety regulations that increase development costs and require compliance investments, raising development timelines and costs.

    Final thoughts on Modine Manufacturing

    Modine Manufacturing leadership in essential thermal management solutions, sustainability focus, and diversified market exposure create compelling opportunities for investors seeking exposure to critical industrial infrastructure. However, the company faces competitive pressures, construction cycle dependency, and commodity cost volatility that require careful, ongoing evaluation of cyclical risks. Like a reliable climate system working behind the scenes, Modine offers steady growth potential to investors who understand the sector`s opportunities and challenges.

  • Power Solutions (NYSE:PSIX)

    Power Solutions International, Inc. designs, engineers, and manufactures a wide range of engines and power systems for industrial and on-road applications. Founded in 1985 and headquartered in Wood Dale, Illinois, the company has strategically pivoted towards the high-growth data center power generation market. This shift has been a major catalyst, with shares up over 800% last year amid strong demand for backup power driven by the AI boom.

    The company`s primary business involves providing customized, emission-certified power systems, including natural gas and diesel-powered electric generators for mission‑critical applications. Its Power Systems segment, which now accounts for the majority of sales, is experiencing rapid growth fueled by hyperscalers expanding their data center capacities. PSI`s integrated, custom‑engineered solutions position it as a key supplier of critical infrastructure supporting uninterrupted power for AI and cloud computing.

    Power Solutions financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 16.6%
    • Return on equity (ROE): 118.49%
    • Return on investment (ROI): 39.12%

    Profitability

    • Gross margin: 27.57%
    • Operating margin: 13.91%
    • Net profit margin: 17.94%

    Growth

    • EPS (past 5 years): 51.02%
    • EPS (current): 5.26
    • EPS estimate (next quarter): 0.64
    • EPS growth (this year): 59.9%
    • EPS growth (next year): 17.56%
    • EPS growth (next 5 years): 45.14%
    • EPS growth (quarter-over-quarter): 59.18%
    • Sales growth (past 5 years): -2.71%
    • Sales growth (quarter-over-quarter): 62%

    💡 Why invest in Power Solutions?

    Power Solutions provides essential infrastructure and energy services for customers across data center and industrial markets:

    • Data Center Dynamo: The company`s strategic focus on providing backup power generators for data centers is its primary growth engine, placing PSIX in a lucrative, rapidly expanding market segment serving hyperscalers with certified uptime.
    • Impressive Financial Performance: PSIX has demonstrated remarkable financial transformation, reporting strong revenue growth and significant net income increases while consistently beating earnings estimates and showing operational excellence.
    • Strong Profit Margins: The company boasts a healthy gross margin of 29.7% that has been improving year-over-year, indicating efficient operations and strong pricing power for its in-demand products in the competitive market across core offerings.
    • Strengthening Financial Health: Management has been actively improving the company`s balance sheet by paying down debt, with this financial discipline expected to generate significant free cash flow and enhance shareholder value today.

    🐌 Key considerations before investing in Power Solutions

    Power Solutions faces owner control, data center reliance, competition, tariff risk, pressuring execution and profitability:

    • Majority Ownership Control: Weichai America Corp. is the majority owner of PSIX, creating significant concentration risk where strategic decisions could potentially favor the parent company's interests over minority shareholders over time.
    • Data Center Dependence: The company`s recent success is heavily tied to the continued expansion of data centers, creating significant risk if this sector experiences slowdowns or reduced capital investment in infrastructure across cycles.
    • Industrial Competition Intensity: PSIX faces stiff competition from larger, more established players in the industrial power systems market with greater resources, market reach, and established customer relationships across key verticals and regions.
    • Geopolitical Trade Risks: The company has acknowledged the evolving tariff environment as a potential risk, with changes in trade policy potentially introducing supply chain disruptions and increased manufacturing costs across supply chains.

    Final thoughts on Power Solutions

    Power Solutions International has successfully engineered a powerful pivot into the data center market, resulting in explosive growth and a revitalized financial profile. The AI revolution provides a strong runway, but risks remain, including competitive pressures and the influence of its majority owner. For investors who believe the data center boom is just getting started, PSIX offers a compelling opportunity to plug into a high-growth story.

  • Hanza (ST:HANZA)

    Hanza Holding AB is a Nordic manufacturing partner providing electronics and mechanical production solutions to technology companies across medtech, cleantech, and industrial automation. Founded in 2008 in Stockholm, Sweden, the company built a manufacturing ecosystem through acquisitions and organic growth, with specialized facilities across Nordics and Central Europe. Hanza combines advanced capabilities with supply chain optimization and engineering expertise, making it a preferred partner for innovative companies seeking efficient local production.

    Core operations span electronics manufacturing services, mechanical production, and integrated supply chain solutions delivered through a cluster model that improves efficiency and reduces logistics costs. Facilities in Sweden, Finland, Estonia, Poland, and the Czech Republic serve clients in medical technology, clean energy, industrial automation, and telecommunications. Nearshoring, specialized production needs, and supply chain resilience trends position Hanza to help Nordic companies maintain competitive advantages through efficient local expertise.

    Hanza financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 4.68%
    • Return on equity (ROE): 12.54%
    • Return on investment (ROI): 10.6%

    Profitability

    • Gross margin: 43.8%
    • Operating margin: 8.26%
    • Net profit margin: 3.64%

    Growth

    • EPS (past 5 years): 22.9%
    • EPS (current): 4.44
    • EPS estimate (next quarter): 13.8
    • EPS growth (this year): 87.8%
    • EPS growth (next year): 18.4%
    • EPS growth (next 5 years): 16.8%
    • EPS growth (quarter-over-quarter): 31.2%
    • Sales growth (past 5 years): 28.4%
    • Sales growth (quarter-over-quarter): 26.8%

    💡 Why invest in Hanza?

    Cluster‑based electronics and mechanical manufacturing with supply chains and engineering support define Hanza’s offering:

    • Cluster-Based Manufacturing Model: Hanza operates an innovative production cluster system that optimizes manufacturing efficiency, reduces logistics costs, and provides supply chain resilience through distributed facilities across sites and regions.
    • High-Growth Sector Focus: The company serves rapidly expanding industries including medtech, cleantech, and industrial automation, providing exposure to secular growth trends and premium pricing opportunities with reliable delivery expectations.
    • Nearshoring Trend Benefits: Hanza capitalizes on companies moving production closer to end markets, offering Nordic customers local alternatives with shorter lead times and improved supply chain reliability, improving responsiveness.
    • Strategic Acquisition Growth: The company has demonstrated acquisition integration capabilities, creating value through strategic purchases of complementary manufacturing businesses and expanded service offerings, supporting capabilities.

    🐌 Key considerations before investing in Hanza

    Hanza faces cycles, competition, integration strain, and cost inflation, pressuring pricing, execution, and resilient operations:

    • Client Dependency Risk: The company`s revenue depends on relationships with key customers in specialized industries, creating vulnerability to contract losses, customer consolidation, or strategic changes that impact volume commitments.
    • Cyclical Industry Exposure: Manufacturing services are subject to economic cycles and demand fluctuations, making revenue and profitability vulnerable to downturns in served industries and inventory adjustments, extending recovery timelines.
    • Integration Execution Challenges: Continued growth through acquisitions requires successful integration of diverse operations, cultures, and systems, with execution risks that could impact operational efficiency and project delivery.
    • Cost Inflation Pressures: Rising labor costs, energy prices, and raw material inflation can pressure margins if not passed through to customers successfully, requiring pricing discipline and contract management under fixed contracts.

    Final thoughts on Hanza

    Hanza`s cluster model, sector focus, nearshoring benefits, and acquisition expansion create attractive exposure to specialized manufacturing services for Nordic and European technology customers. Customer concentration, industry cyclicality, integration requirements, and cost inflation pressures require careful evaluation of operational execution and sustained margin management. For investors seeking resilient Nordic manufacturing partners, Hanza offers disciplined growth potential balanced against execution demands and evolving supply chain dynamics.

  • Mueller Industries (NYSE:MLI)

    Mueller Industries manufactures copper, brass, aluminum, and plastic components for plumbing, HVAC, and industrial flow systems across global markets today. Founded in 1917, Mueller Industries pairs materials expertise with process engineering to deliver durable, cost‑effective products at scale globally today. Headquartered in Collierville, Tennessee, the company emphasizes operational rigor, customer reliability, and disciplined capital allocation to support growth and cash generation.

    The company supplies tubing, fittings, valves, and precision components for residential construction, refrigeration, and commercial infrastructure applications across key markets. Integrated manufacturing and distribution capabilities enhance lead times, quality control, and service consistency across North America, Europe, Asia, and the Middle East. Strategic priorities include cost efficiency, capacity investments, and portfolio optimization to align product mix with demand while strengthening margins through cycles.

    Mueller Industries financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 15.93%
    • Return on equity (ROE): 25.61%
    • Return on investment (ROI): 24.24%

    Profitability

    • Gross margin: 29.02%
    • Operating margin: 18.13%
    • Net profit margin: 18.31%

    Growth

    • EPS (past 5 years): 42.73%
    • EPS (current): 6.86
    • EPS estimate (next quarter): 1.67
    • EPS growth (this year): 14.1%
    • EPS growth (next year): 7.69%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 26.54%
    • Sales growth (past 5 years): 9.17%
    • Sales growth (quarter-over-quarter): 4.2%

    💡 Why invest in Mueller Industries?

    Mueller Industries presents fundamental strengths that position it well for investors seeking stable returns and long-term growth:

    • Industrial Manufacturing Leader: Mueller boasts a century-long legacy with leading positions in copper and brass manufacturing, translating to consistent contracts and predictable revenue streams for future growth and operational stability.
    • Diversified Product Portfolio: Mueller expands beyond traditional copper and brass into aluminum, steel, and plastic components, plus valves and instrumentation for strategic diversification and growth opportunities across multiple markets.
    • Global Manufacturing Presence: With operations spanning North America, Europe, Asia, and the Middle East, Mueller serves diverse industrial needs worldwide and accesses emerging markets with growing infrastructure demands and construction projects.
    • Quality Customer Relationships: Mueller thrives on its commitment to high-quality products and strong customer relationships, fostering brand loyalty and driving repeat business through superior service delivery and technical support.

    🐌 Key considerations before investing in Mueller Industries

    Mueller Industries faces housing cyclicality, commodity volatility, and competition that pressure pricing, volumes, and margins:

    • Stock Market Volatility: Like many industrial companies, MLI's stock can be volatile, reflecting expectations of raw material prices, economic conditions, and market sentiment requiring patient investment approaches and long-term perspective.
    • Competitive Market Pressure: Regional manufacturers and global conglomerates vie for market share, challenging Mueller's position and requiring strategic competitive responses to maintain market leadership and pricing power in key segments.
    • Economic Cycle Sensitivity: Global economic downturns can significantly impact industrial spending and infrastructure projects, potentially affecting Mueller's sales and profitability across key market segments and geographic regions.
    • Commodity Price Exposure: Fluctuations in copper, brass, and other metal prices can significantly impact Mueller's profitability and project costs, requiring investors to monitor commodity markets and hedging strategies carefully and consistently.

    Final thoughts on Mueller Industries

    Mueller Industries offers essential components and manufacturing reliability, supported by diversified materials expertise and integrated distribution serving infrastructure markets globally. Key risks include housing cyclicality, commodity price swings, and competitive pressures that can affect pricing, volumes, and short‑term profitability and investment pacing. For investors seeking industrial exposure, Mueller Industries represents a disciplined operator focused on efficiency, cash generation, and durable customer relationships through cycles.

  • Graham (NYSE:GHM)

    Graham Corporation is a global designer, manufacturer, and supplier of vacuum and heat transfer equipment for the energy, defense, chemical, and petrochemical industries. Founded in 1936 and headquartered in Batavia, New York, the company has established itself as a leading provider of mission-critical equipment for power generation, oil refining, and industrial processing applications. Graham serves customers worldwide through its manufacturing facilities in the United States and China.

    The company specializes in custom-engineered solutions including steam jet ejector vacuum systems, surface condensers, heliflow heat exchangers, and other specialized equipment for demanding industrial applications. Graham`s products are essential components in power plants, refineries, and chemical processing facilities, providing critical heat transfer and vacuum services. With a focus on engineering excellence and customer service, the company continues to develop innovative solutions for evolving energy and industrial markets.

    Graham financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 3.79%
    • Return on equity (ROE): 12.15%
    • Return on investment (ROI): 10.77%

    Profitability

    • Gross margin: 24.63%
    • Operating margin: 7.02%
    • Net profit margin: 6.28%

    Growth

    • EPS (past 5 years): 42.29%
    • EPS (current): 1.35
    • EPS estimate (next quarter): 0.28
    • EPS growth (this year): 78.6%
    • EPS growth (next year): 50.29%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 53.86%
    • Sales growth (past 5 years): 18.3%
    • Sales growth (quarter-over-quarter): 20.5%

    💡 Why invest in Graham?

    Graham provides specialized manufacturing solutions for power generation and industrial customer markets worldwide:

    • Mission Critical Equipment: Graham provides essential vacuum and heat transfer systems for power plants, refineries, and chemical facilities, creating customer dependency and recurring maintenance revenue streams.
    • Custom Engineering Expertise: The company`s specialized design and manufacturing capabilities for complex industrial applications provide pricing power and competitive advantages in niche markets with high barriers to entry.
    • Energy Infrastructure Exposure: Graham benefits from power plant maintenance, refinery upgrades, and industrial facility modernization projects, providing exposure to essential energy infrastructure spending across global markets.
    • Global Operations Network: Operations in United States and China provide cost advantages, market access, and manufacturing flexibility to serve diverse customer requirements and geographic markets with operational efficiency.

    🐌 Key considerations before investing in Graham

    Graham faces substantial project cycle variability and significant competition pressures in specialized markets:

    • Cyclical End Markets: Heavy dependence on power generation, oil refining, and chemical processing industries creates vulnerability to capital spending cycles, energy price volatility, and economic downturns.
    • Small Company Scale: Limited size and resources compared to large industrial equipment manufacturers create challenges in R&D investment, global expansion, and competing for major project contracts with multinational corporations.
    • Project Revenue Volatility: Lumpy project timing and custom equipment orders create earnings volatility and make financial performance difficult to predict across quarterly reporting periods, impacting investor confidence.
    • Intense Competitive Pressure: Competition from larger industrial equipment companies and specialized manufacturers can pressure margins, market share, and pricing power in key product categories, limiting profitability and growth potential.

    Final thoughts on Graham

    Graham`s specialized expertise in vacuum and heat transfer equipment, mission-critical applications, and custom engineering capabilities create compelling opportunities for investors seeking exposure to essential industrial infrastructure. The company`s niche market positioning and technical expertise provide competitive advantages in specialized applications. However, cyclical end markets, small company scale, and project-based revenue patterns warrant careful evaluation of execution capabilities and market dynamics in the industrial equipment sector.

  • Jabil (NYSE:JBL)

    Jabil Circuit, Inc. is a leading provider of electronics manufacturing services and supply chain solutions for diverse global industries. Founded in 1966 and headquartered in St. Petersburg, Florida, Jabil has grown into one of the world's largest electronics manufacturers. The company serves cloud infrastructure, automotive, aerospace, and consumer electronics sectors worldwide.

    The company specializes in complex manufacturing, engineering, and supply chain management that help customers optimize costs. Jabil's comprehensive services span design engineering, manufacturing, supply chain optimization, and after-sales support. Advanced electronics manufacturing capabilities drive continued growth and market leadership.

    Jabil financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 5.16%
    • Return on equity (ROE): 47.82%
    • Return on investment (ROI): 17.08%

    Profitability

    • Gross margin: 8.94%
    • Operating margin: 4.13%
    • Net profit margin: 2.26%

    Growth

    • EPS (past 5 years): 76.36%
    • EPS (current): 6.38
    • EPS estimate (next quarter): 2.49
    • EPS growth (this year): 53.4%
    • EPS growth (next year): 15.81%
    • EPS growth (next 5 years): 17.42%
    • EPS growth (quarter-over-quarter): 53.68%
    • Sales growth (past 5 years): 1.79%
    • Sales growth (quarter-over-quarter): 18.7%

    💡 Why invest in Jabil?

    Jabil demonstrates strong competitive positioning in diversified global electronics manufacturing and logistics sectors worldwide:

    • Market Diversification Benefits: Jabil serves diversified end markets across healthcare, automotive, industrial, cloud and consumer, which reduces reliance on any one product cycle and helps stabilize demand in downturns.
    • AI Infrastructure Momentum: Management is prioritizing cloud and AI data center infrastructure, including a planned multi-year $500 million U.S. manufacturing investment, supporting growth in servers, networking and power.
    • Scaled Global Operations: With a distributed manufacturing and supply-chain network across the Americas, Europe and Asia, Jabil can localize production, qualify alternate suppliers and respond quickly to customer ramps.
    • Long Duration Programs: Deep experience in regulated programs (healthcare and automotive) plus design, test and aftermarket services increases switching costs for customers and supports longer contracts than typical EMS work.

    🐌 Key considerations before investing in Jabil

    Jabil faces significant economic sensitivity and intense global competitive industry challenges worldwide significantly:

    • Structurally Thin Margins: Electronics manufacturing services is a scale business with structurally thin margins; wage inflation, unfavorable mix or pricing pressure from large OEMs can quickly compress profitability.
    • Major Customer Concentration: A meaningful portion of revenue comes from a handful of large customers, so a lost program, insourcing decision or product transition at a major OEM could impact utilization and earnings.
    • Geopolitical Supply Risks: Global operations expose Jabil to tariffs, trade restrictions, and geopolitical shocks; disruptions in components or logistics can delay shipments, increase costs and damage relationships.
    • Capex Execution Risks: Expanding into fast-growing AI and infrastructure programs requires capital spending and flawless execution; delays, quality issues or excess capacity can lead to charges and lower returns.

    Final thoughts on Jabil

    Jabil combines global scale, deep manufacturing know-how, and integrated supply chain services with an increasing focus on cloud and AI infrastructure programs. The mix of regulated and infrastructure end markets can support steadier demand and stickier customer relationships over time. Still, investors should weigh structurally thin EMS margins, customer concentration, and execution risk as the company ramps capital-intensive programs.

  • UFP Technologies (NYSE:UFPT)

    UFP Technologies, Inc. is a leading designer and producer of custom-engineered components, primarily using foams, films, and advanced materials. Founded in 1963 and headquartered in Newburyport, Massachusetts, the company started as a small manufacturing business and has grown significantly. Over the decades, UFP Technologies has expanded its reach across various industries, including medical, automotive, aerospace, and defense, by acquiring specialized companies and continuously innovating.

    UFP Technologies specializes in creating highly engineered packaging, protective solutions, and component products that serve critical applications, particularly in healthcare and medical sectors. The company`s expertise in medical device protection, orthopedic implant packaging, and infection prevention solutions has made it a trusted partner for major manufacturers. Beyond healthcare, UFP Technologies provides advanced materials and components for industries that require precision, durability, and regulatory compliance in high-performance applications.

    UFP Technologies financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 9.23%
    • Return on equity (ROE): 18.31%
    • Return on investment (ROI): 12.16%

    Profitability

    • Gross margin: 28.51%
    • Operating margin: 15.32%
    • Net profit margin: 11.22%

    Growth

    • EPS (past 5 years): 23.59%
    • EPS (current): 8.6
    • EPS estimate (next quarter): 2.07
    • EPS growth (this year): 0%
    • EPS growth (next year): 14.32%
    • EPS growth (next 5 years): 8.71%
    • EPS growth (quarter-over-quarter): 0.03%
    • Sales growth (past 5 years): 20.52%
    • Sales growth (quarter-over-quarter): 6.5%

    💡 Why invest in UFP Technologies?

    UFP Technologies demonstrates niche strengths in specialized industrial manufacturing and industrial sector solutions:

    • Advanced Material Expertise: UFP boasts expertise in diverse materials like foams, plastics, and films, utilizing advanced techniques like laminating, molding, and fabrication to create custom solutions across various industries.
    • Diversified Industry Exposure: Recognizing diverse client needs, UFP expands beyond medical devices, offering engineered components and packaging solutions to industries like aerospace, automotive, consumer goods, and electronics globally.
    • Continuous Innovation Focus: UFP prioritizes research and development, investing in advanced technologies and materials to create innovative solutions for evolving customer needs, positioning the company for future success in markets.
    • Expanding Global Footprint: With operations spanning the US, Mexico, and Europe, UFP caters to diverse client needs worldwide, providing access to emerging markets and bolstering its future growth prospects across multiple regions.

    🐌 Key considerations before investing in UFP Technologies

    UFP faces substantial economic pressures and intense competitive challenges in specialized industrial sectors worldwide:

    • Stock Valuation Volatility: Like many industrials, UFPT`s stock can be volatile, reflecting expectations of future raw material prices, economic conditions, and overall market sentiment, requiring a cautious approach with patience.
    • Intensifying Market Competition: Smaller regional manufacturers and global conglomerates are vying for market share, challenging UFP`s dominant position through pricing pressure and technological innovation in custom-engineered markets.
    • Economic Cycle Sensitivity: Global economic downturns can impact industrial spending and project development, potentially hitting UFP`s sales and profitability as customers delay capital expenditures and reduce manufacturing investments.
    • Regulatory Compliance Costs: Evolving regulations surrounding materials, environmental impact, and product safety can impact UFP`s operations and necessitate costly compliance measures, particularly in highly regulated medical markets.

    Final thoughts on UFP Technologies

    UFP Technologies` diverse material expertise, focus on innovation, global reach, and diversified client base paint a potentially promising picture for long-term investors seeking exposure to the dynamic manufacturing and packaging sectors. However, stock volatility, rising competition, economic sensitivity, and evolving regulatory landscape warrant a measured approach before investment. UFP Technologies might just find your portfolio custom-crafted for success, but thorough research on their future plans and market positioning is essential.

  • Flex (NASDAQ:FLEX)

    Flex Ltd. is a leading global provider of design, engineering, manufacturing, and supply chain solutions serving diverse industries including automotive, healthcare, industrial, consumer devices, and communications. Founded in 1969 and headquartered in Singapore, the company has evolved from a contract manufacturer into a comprehensive end-to-end solutions provider with operations spanning over 30 countries across the Americas, Europe, and Asia. With decades of manufacturing expertise and a global footprint, Flex has established itself as a trusted partner for major technology brands and industrial companies seeking to optimize their product development and manufacturing operations.

    The company's core business encompasses product design and engineering services, advanced manufacturing capabilities including printed circuit board assembly and system integration, and comprehensive supply chain management solutions that span procurement, logistics, and aftermarket services. Flex serves customers across multiple high-growth sectors including electric vehicles, renewable energy, healthcare technology, and cloud infrastructure, leveraging its scale, technical expertise, and global manufacturing network to deliver innovative solutions. With increasing demand for advanced manufacturing capabilities, supply chain resilience, and product innovation across technology sectors, Flex is strategically positioned to capitalize on secular growth trends while generating stable revenues through long-term customer partnerships and diversified end-market exposure.

    Flex financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 4.53%
    • Return on equity (ROE): 16.85%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 9.27%
    • Operating margin: 5.67%
    • Net profit margin: 3.17%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 2.23
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -4.5%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 7.7%

    💡 Why invest in Flex?

    Flex provides diversified electronics manufacturing and comprehensive advanced technology services to customers globally:

    • Diversified End-Market Exposure: Flex serves automotive, healthcare, industrial and communications customers, limiting reliance on a single cycle while still capturing long-term demand from electrification, automation and connectivity trends.
    • Global Manufacturing Network: A broad footprint across the Americas, Europe and Asia lets Flex place production near customers, diversify sourcing and keep deliveries reliable when regional disruptions or tariffs arise.
    • Comprehensive Solutions Portfolio: Integrated design, engineering, manufacturing and supply-chain services help customers consolidate vendors, shorten product cycles and lower total costs across complex, multi-site programs.
    • Long-Term Customer Relationships: Deep partnerships with technology and industrial customers create recurring programs, higher switching costs, and opportunities to expand engagement across product lifecycles and new launches.

    🐌 Key considerations before investing in Flex

    Despite its strong market position, Flex faces notable challenges inherent to the competitive contract manufacturing industry:

    • Low Margin Business: Contract manufacturing typically runs on thin margins as customers negotiate aggressively, so Flex must maintain high utilization and relentless cost control to deliver attractive earnings over time.
    • Customer Revenue Concentration: Revenue concentration in large OEM accounts creates risk if a key customer shifts programs, reduces volumes, or renegotiates pricing, which can quickly lower utilization and earnings.
    • Supply Chain Disruptions: Global operations expose Flex to component shortages, freight bottlenecks and tariff shifts that can disrupt production schedules, raise costs and strain customer relationships during supply shocks.
    • Technology Transition Risk: Rapid technology shifts require ongoing spending on new equipment and skills, and mis-timed investments or slow adoption can erode competitiveness and profitability across programs.

    Final thoughts on Flex

    Flex's diversified end-market exposure, global manufacturing network, and comprehensive solutions portfolio position it as a leading electronics manufacturing services provider with stable customer relationships. However, investors must consider low profit margins, customer concentration risks, and supply chain vulnerabilities that characterize the contract manufacturing sector. Like a skilled manufacturing partner that adapts to diverse customer needs, Flex leverages its scale and capabilities to generate consistent revenues while navigating the competitive dynamics and operational complexities of global electronics manufacturing.

If you are interested in other stock categories, check out my other lists of the best AI, automotive, basic materials, beauty, brokers, century old, cloud, communication services, conglomerate, construction, consulting, cybersecurity, defense, e-commerce, education, energy, financial, gold mining, healthcare, high dividend, hotel, industrial, insurance, quantum computing, real estate, retail, saas, semiconductor, stocks, tech, travel, utility, waste management stocks.

If you are interested specifically in European manufacturing stocks, check out my best European manufacturing stocks.