The Zacks Analyst Blog Highlights Kennametal, Mueller Water Products and Trimble

For Immediate ReleaseChicago, IL – February 4, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kennametal Inc. KMT, Mueller Water Products, Inc. MWA and Trimble Inc. TRMB.Here are highlights from Tuesday’s Analyst Blog:3 Industrial Stocks Set to Outpace Q4 Earnings EstimatesThe Zacks Industrial Products sector kicked off the fourth quarter of 2025 earnings season last week. In the quarter, the sector is anticipated to have benefited from strength across key end markets and growth in e-commerce activities. However, persistent weakness in the manufacturing sector, tepid consumer spending, supply-chain bottlenecks and cost inflation are likely to have affected the sector's performance.Per the latest Earnings Trend report, the Industrial Products sector's fourth-quarter earnings are anticipated to witness a year-over-year decline of 2.1% against 3% growth recorded in the previous quarter. The sector's revenues are projected to increase 10.5%, while margins are expected to decline 1.6%. The July-September quarter had witnessed 9.8% revenue growth and a 0.9% decline in margins.Let us discuss the factors that are likely to have played a key role in shaping the performance of industrial stocks in the fourth quarter.Key Factors to Consider for Industrial StocksThe Industrial Product sector has been grappling with persistent softness in the manufacturing sector. Per the Institute for Supply Management report, the Manufacturing PMI (Purchasing Manager's Index) recorded 48.8% in October 2025, 48% in November and 47.9% in December. A figure less than 50% indicates a contraction in manufacturing activity. December marked the tenth consecutive month of contraction for the manufacturing sector.Also, the fourth quarter of the year registered a continued slowdown in orders, with weaker-than-expected readings in the manufacturing sector. The New Orders Index contracted in October, November and December, registering 48.7%, 47.3% and 47.4%, respectively.Over the past several months, the industrial products sector has been bearing the brunt of inflationary pressures, an increase in labor market slack, ongoing supply-chain disruptions and cautious consumer spending. Tariffs and trade-related levies on imported raw materials, packaging components and intermediate goods have added incremental cost pressures, particularly for companies with global supply chains.Nevertheless, companies with exposure to commercial and defense aerospace markets have been benefiting from strong aftermarket and OEM demand, driven by continued strength in air travel and government support. Also, resiliency in the nondurables, business supplies and food & beverage markets is likely to boost the Industrial Sector's results.How to Pick Earnings Estimates Beating Stocks?Given the large number of players operating in the industrial products space, picking the right stock is not an easy task. Our proven model, however, makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat.You can uncover the best stocks before they report earnings with our Earnings ESP Filter.Earnings ESP— the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with maximum chances of delivering positive earnings surprises in their announcement. Our research shows that for stocks with this combination of ingredients, the chances of a beat are as high as 70%.3 Industrial Stocks with Earnings Beat PotentialKennametal Inc. has an Earnings ESP of + 8.57% and a Zacks Rank of 1 at present. The company is scheduled to release fourth-quarter 2025 earnings on Feb. 4. The Zacks Consensus Estimate for KMT's earnings is pegged at 35 cents per share, indicating a 40% year-over-year increase. The company's earnings surpassed the Zacks Consensus Estimate twice, met and missed once each in the trailing four quarters, the average surprise being 26.9%.Kennametal's fourth-quarter performance is expected to have gained from strength in the Metal Cutting segment, supported by an increase in aerospace original equipment manufacturer build rates and robust U.S. and international defense spending volumes. Also, solid momentum in the energy market, supported by data center power generation wins and signs of recovery in the general engineering market, bodes well for the segment. Recovery in the earthworks market, driven by higher mining activity and new project wins in the Americas region, also augurs well.Mueller Water Products, Inc. has an Earnings ESP of +5.00% and a Zacks Rank of 2 at present. The company is scheduled to release first-quarter fiscal 2026 earnings on Feb. 4. The Zacks Consensus Estimate for MWA's earnings is pegged at 27 cents per share, indicating an 8% year-over-year increase. The company's earnings beat the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, the average surprise being 11.7%.Mueller Water is likely to have performed well in the fiscal first quarter, supported by solid demand for most of its product lines, including iron gate, specialty valves, hydrants and repair units. Benefits from the company's manufacturing efficiencies, volume growth and lower effective pricing are likely to have supported its margins and bottom line.Trimble Inc. has an Earnings ESP of +1.91% and a Zacks Rank of 2 at present. The company is scheduled to release fourth-quarter 2025 earnings on Feb. 10. The Zacks Consensus Estimate for TRMB's earnings is pegged at 96 cents per share, indicating 7.9% year-over-year increase. The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.4%.Trimble's fourth-quarter performance is expected to have benefited from strong growth in its recurring revenue streams, particularly in its AECO and Field Systems segments. With increased customer adoption of its digital solutions and AI-driven innovation, the company's significant growth in its ARR is a major positive. It also benefits from its "Connect and Scale" approach, which has strengthened its business model and product offerings, particularly in the construction, geospatial, and transportation markets.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. 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(KMT): Free Stock Analysis Report MUELLER WATER PRODUCTS (MWA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks