Zacks Industry Outlook Highlights Eaton, Emerson Electric, ESCO Technologies and AZZ

For Immediate ReleaseChicago, IL – July 30, 2025 – Today, Zacks Equity Research discusses Eaton Corp. plc ETN, Emerson Electric Co. EMR, ESCO Technologies Inc. ESE and AZZ Inc. AZZ.Industry: Manufacturing - ElectronicsLink: https://www.zacks.com/commentary/2634015/4-manufacturing-electronics-stocks-to-consider-on-robust-industry-trendsThe Zacks Manufacturing - Electronics industry is poised to gain from stable demand across the electronic services end market, product innovation efforts and growing adoption of advanced manufacturing technologies. A surge in e-commerce activities is also likely to aid 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 Corp. plc, Emerson Electric Co., ESCO Technologies Inc. and AZZ 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 FocusWeakness in the Manufacturing Sector: 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, the manufacturing sector contracted in March, April, May and June.Per the Institute for Supply Management's (ISM) report, the Manufacturing Purchasing Manager's Index touched 49% in June. A figure less than 50% indicates a contraction in manufacturing activity. Also, the New Orders Index remained in the contraction territory for the fifth consecutive month, registering 46.4% in June.In addition, supply-chain disruptions, especially related to the availability of 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 for the seventh straight month in June.Strength 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.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Manufacturing – Electronics industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #41. This rank places it in the top 17% of 246 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 Outperforms Sector & the S&P 500The Zacks Manufacturing – Electronics industry has outperformed the broader sector and the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 25.8% compared with the sector's rise of 12% and the S&P 500 Index's increase of 17.9%.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 24.73X compared with the S&P 500's 22.87X. It is also above the sector's P/E ratio of 20.61X.Over the past five years, the industry has traded as high as 25.19X, as low as 18.91X and at the median of 22.61X.4 Manufacturing Electronics Stocks to Keep Tabs OnAZZ: Based in Fort Worth, TX, this company is engaged in providing metal coating solutions for corrosion protection, including hot-dip galvanizing, anodizing, powder coating and plating to the steel fabrication and other industries. AZZ is well-positioned to benefit from an increase in infrastructure-related project spending in end markets including industrial, construction, and electrical transmission & distribution.In the past year, shares of this Zacks Rank #1 (Strong Buy) company have gained 40.1%. AZZ delivered an earnings surprise of 8.1%, on average, beating estimates in the trailing four quarters. You can see the complete list of today's Zacks #1 Rank stocks here.ESCO Technologies: Headquartered in Saint Louis, MO, ESCO Technologies provides engineered filtration, fluid control products and integrated propulsion systems to the aerospace, defense, energy, medical and communications industries. Increase in demand for test and measurement, industrial shielding and medical services is aiding the company's performance. Rising orders for cartridge-actuated devices/propellant-actuated devices products also bode well.Shares of this Zacks Rank #1 company have soared 56.8% in the past year. The Zacks Consensus Estimate for ESE's fiscal 2025 earnings has been revised upward by 6.5% in the past 60 days.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.Eaton's shares have gained 36.7% in the past year. This Zacks Rank #3 (Hold) company reported better-than-expected results in each of the last four quarters, the average being 1.9%.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 Intelligent Devices and Software and Control segments. Strength in the power end markets is aiding the Final Control business. Robust growth across AspenTech and strength in the power and process end markets are buoying the Measurement & Analytical business.EMR's shares have gained 29.2% in the past year. This Zacks Rank #3 company reported better-than-expected results in each of the trailing four quarters, the average being 3.4%.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.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 ESCO Technologies Inc. (ESE): Free Stock Analysis Report AZZ Inc. (AZZ): 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