Zacks Industry Outlook Highlights Eaton, Emerson Electric, EnerSys and Powell

For Immediate ReleaseChicago, IL – January 19, 2026 – Today, Zacks Equity Research discusses Eaton Corporation plc ETN, Emerson Electric Co. EMR, EnerSys ENS and Powell Industries, Inc. POWL.Industry: Manufacturing ElectronicsLink: https://www.zacks.com/commentary/2818630/4-manufacturing-electronics-stocks-to-watch-on-promising-industry-trendsThe Zacks Manufacturing - Electronics industry is benefiting from stable demand across the electronic services end market, increasing adoption of advanced manufacturing technologies and product innovation efforts. A surge in e-commerce activities is also likely to support the industry’s growth.However, a slowdown in the manufacturing sector and supply-chain issues have been weighing on the performance of some industry participants. Eaton Corporation plc, Emerson Electric Co., EnerSys and Powell Industries, Inc. are a few industry participants that are expected to capitalize on the opportunities.Industry DescriptionThe Zacks Manufacturing-Electronics industry comprises companies that manufacture electronic products like battery chargers, battery accessories, outdoor cabinet enclosures, power transmission products, electrical motion controls and motive power devices. Some industry players also provide water-treatment products, engineered flow components, process equipment and turn-key systems.These companies offer state-of-the-art customer support and after-market services to end users. The firms are increasing investments in developing innovative technologies, boosting customer and employee experience, and supply-chain modernization programs. The manufacturing electronic companies sell products and services in various end markets, including robotics, semiconductor, defense, aerospace, medical equipment and satellite communications.3 Manufacturing Electronics Industry Trends in FocusStrength in the Electronics Services Market: Despite a slowdown in manufacturing activities, demand across key end markets has been stable. Electronics manufacturers are steadily benefiting from the higher adoption of advanced manufacturing technologies and processes by original equipment manufacturers.The requirement for integrating advanced electronic components into machinery and electronic devices has been supporting the electronics manufacturing services market. In addition, a few industry players with wide exposure to the booming medical and life science markets are witnessing a positive momentum across their businesses due to sturdy demand for their products and solutions. A surge in the e-commerce business has also been boosting several industry participants’ prospects.Technological Advancement Benefits: With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. With digitization, businesses are gaining a detailed insight into their operational performances, demand cycles, delivery status and supply-chain issues. This, in turn, is helping them bolster their competitiveness in the market with enhanced operational productivity, product quality and lower costs.Softness in the Manufacturing Sector: Persistent weakness in the manufacturing sector has been denting the demand in the industry. After witnessing expansion in economic activities for the second consecutive month in February 2025, the manufacturing sector contracted for the 10th successive month in December 2025. Per the Institute for Supply Management’s (ISM) report, the Manufacturing PMI (Purchasing Manager’s Index) touched 47.9% in December.A figure less than 50% indicates a contraction in manufacturing activity. Also, the New Orders Index contracted, registering 47.7% in the same month. In addition, supply-chain disruptions, especially related to the availability of electrical and electronic components, remain a concern for industry participants of late. This is evident from the latest ISM report’s Supplier Deliveries Index, which reflected slower deliveries in December.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Manufacturing – Electronics industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #52. This rank places it in the top 22% of 243 Zacks industries.The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.Given the strong near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. However, it is worth taking a look at the industry’s shareholder returns and current valuation first.Industry Underperforms Sector & S&P 500The Zacks Manufacturing – Electronics industry has underperformed the broader sector and the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 5.4% compared with the sector’s rise of 10.3% and the S&P 500 Index’s increase of 19.4%.Industry's Current ValuationOn the basis of the forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing stocks, the industry is currently trading at 22.27X compared with the S&P 500’s 23.38X. However, it is above the sector’s P/E ratio of 21.68X.Over the past five years, the industry has traded as high as 25.64X, as low as 14.48X and at the median of 20.99X.4 Manufacturing Electronics Stocks to Keep a Tab OnPowell: Headquartered in Houston, TX, Powell engages in manufacturing and supplying custom-engineered equipment and systems that are used for distributing, controlling and monitoring the flow of electrical energy. The company is benefiting from persistent strength and healthy levels of project activity across the electric utility and commercial & other industrial markets. Also, several favorable trends across the oil, gas and petrochemical end markets, including growth in energy transition projects, such as biofuels, carbon capture and hydrogen, bode well for POWL.Shares of this Zacks Rank #2 (Buy) company have soared 55.2% in the past year. The company beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 8.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Emerson: Based in St. Louis, MO, this global engineering and technology company offers a wide range of products and services to customers in the consumer, commercial and industrial markets. Emerson is witnessing solid momentum in the Final Control business, driven by strength in the power end markets. Robust growth across the Americas and Asia, Middle East & Africa regions is buoying EMR’s Measurement & Analytical business. Solid performance of the power and process end markets is driving the Control Systems & Software business.Shares of this Zacks Rank #3 (Hold) company have gained 18.9% in the past year. The company beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 3.2%.Eaton: Headquartered in Dublin, Ireland, Eaton is a diversified power management company and a global technology leader in electrical components and systems. ETN is benefiting from rising demand from the new AI-data center and contributions from its organic assets. The company is also poised to benefit from the megatrends, including the reindustrialization process started across the globe.Although shares of this Zacks Rank #3 company lost 3.7% in the past year, they rose 5.6% in the past month. It beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 0.7%.EnerSys: Based in Pennsylvania, EnerSys is engaged in the manufacturing, marketing and distribution of various industrial batteries. ENS is well-positioned to benefit from solid momentum in the Specialty segment, driven by strong momentum in the aerospace and defense end market. The expansion of U.S. communications networks, fueled by AI-driven data demand within the Energy Systems segment, also bodes well for it.Shares of EnerSys rose 19.2% in the past year. This Zacks Rank #3 company beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 4.9%.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.comhttps://www.zacks.comPast 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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Powell Industries, Inc. (POWL): 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