Zacks Industry Outlook Highlights Honeywell, 3M, Carlisle Companies and Federal Signal

For Immediate ReleaseChicago, IL – July 21, 2025 – Today, Zacks Equity Research discusses Honeywell International Inc. HON, 3M Co. MMM, Carlisle Companies Inc. CSL and Federal Signal Corp. FSS.Industry: Diversified OperationsLink: https://www.zacks.com/commentary/2591966/4-diversified-operations-stocks-to-consider-on-promising-industry-trendsThe Zacks Diversified Operations industry is poised to gain from strength across the aerospace, defense, and oil & gas industries. Growth in commercial aviation and steady demand in the medical and life science markets are key catalysts for the industry’s growth. Higher infrastructure development, product innovation and technological advancements are also providing momentum.However, persistent weakness in the manufacturing sector and supply-chain issues have been weighing on the performance of some industry players. Honeywell International Inc., 3M Co., Carlisle Companies Inc. and Federal Signal Corp. are a few industry participants that are likely to capitalize on the opportunities.About the IndustryThe Zacks Diversified Operations industry includes companies that operate in various end markets, including oil & gas, industrial, electronics, power, aviation, technology, finance, healthcare, chemical, non-residential construction and transportation. Such companies manufacture and provide equipment and solutions, including bioprocessing products, molecular testing-related products, gas and steam turbines, generators, commercial jet engines and engineered fluid-process equipment.Industry players also provide related services to a large customer base. A few companies offer services in the agriculture, marine and telecommunications markets and are engaged in providing environmental and safety solutions. The diversified market operators have a vast global presence, with exposure in the United States, Japan, India, China, Canada and other countries.Major Trends Shaping the Future of the Diversified Operations IndustryStrength in Aerospace and Defense Markets: The prospects of multi-sector companies primarily depend on the operating conditions of several end markets. Some factors that currently favor the industry are healthy demand from the aerospace, defense and governmental sectors, stability in the oil and gas market and infrastructure development.Industry players with exposure in the commercial aviation markets are poised to gain from healthy growth in air transport flight hours. Also, solid demand for several products and equipment in the consumer and professional, and home and building product markets bodes well for some industry participants.Investments in Innovation & Technological Advancements: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. 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. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.Weakness 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.Supply-Chain Disruptions: Supply-chain disruptions, especially related to the availability of electrical and electronic components, have been concerning for the industry participants of late. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the seventh straight month in June. Supply-chain issues, if not controlled, might hinder the growth of diversified operation companies, going forward.Zacks Industry Rank Suggests Strong ProspectsThe Zacks Diversified Operations industry, housed within the broader Zacks Conglomerates sector, currently carries a Zacks Industry Rank #92. This rank places it in the top 38% of 245 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust 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 bullish 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 Lags the S&P 500In the past year, the Zacks Diversified Operations industry has underperformed the S&P 500 composite. The industry has grown 6.9% compared with the S&P 500 Index’s 13.7% rise.Industry's Current ValuationOn the basis of forward P/E (F12M), which is a commonly used multiple for valuing diversified operations stocks, the industry is currently trading at 17.82X compared with the S&P 500’s 22.69X.Over the past five years, the industry has traded as high as 23.58X and as low as 13.70X, with a median of 16.71X.4 Diversified Operations Stocks Leading the Pack3M: Based in St. Paul, MN, 3M operates as a diversified technology firm. It has manufacturing operations across the globe and serves a diversified customer base throughout the world. The company stands to gain from strong momentum in the Safety and Industrial segment, driven by strength in roofing granules, industrial adhesives and tapes and electrical markets. Solid momentum in the commercial aircraft and defense-related business and project wins in the advanced materials business are aiding its Transportation and Electronics segment.Shares of this Zacks Rank #2 (Buy) company have soared 23.3% in the past year. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.6%. the complete list of today’s Zacks #1 Rank stocks here..Federal Signal: Based in Oak Brook, IL, this company provides a suite of products and integrated solutions including street sweepers, safe-digging trucks, industrial vacuum loaders and others for municipal, governmental and commercial customers. Federal Signal is well-well positioned to benefit from robust aftermarket demand and strong order intake, supported by effective pricing actions. Growth in demand for public safety equipment, industrial signaling equipment and warning systems has been driving its performance.Shares of this Zacks Rank #2 company have gained 16.6% over the past year. It beat estimates in each of the last four reported quarters, delivering an average earnings surprise of 6.4%.Honeywell: Based in Charlotte, NC, Honeywell is a global diversified technology and manufacturing company with a wide range of products and services. Its diversified portfolio includes aerospace products and services, energy-efficient products and solutions for businesses and process technology.HON is gaining from strength in its commercial aviation aftermarket business, driven by solid demand in the air transport market. Strength in its defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial.Shares of the Zacks Rank #3 (Hold) company rose 11.1% in the past year. The company delivered better-than-expected results in each of the trailing four quarters, the average surprise being 6.7%.Carlisle: Based in Scottsdale, AZ, Carlisle engages in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment. CSL is gaining from growing re-roof activity in the construction sector. Strength in the Carlisle Construction Materials segment, driven by contributions from the MTL acquisition and healthy end-market demand, bodes well for it.The Zacks Rank #3 company has delivered better-than-expected results in three of the trailing four quarters while missing the mark in one, the average surprise being 2.3%. Though the company’s shares lost 2.4% in the past year, they rose 10.4% in the year-to-date period.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia 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.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 Honeywell International Inc. (HON): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Carlisle Companies Incorporated (CSL): Free Stock Analysis Report Federal Signal Corporation (FSS): 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