Zacks Industry Outlook Highlights Lincoln Electric, Stanley Black & Decker and Enerpac Tool

For Immediate ReleaseChicago, IL – September 29, 2025 – Today, Zacks Equity Research discusses Lincoln Electric Holdings, Inc. LECO, Stanley Black & Decker, Inc. SWK and Enerpac Tool Group Corp. EPAC.Industry: Manufacturing ToolsLink: https://www.zacks.com/commentary/2757723/3-manufacturing-tools-stocks-to-watch-despite-industry-headwindsThe Zacks Manufacturing-Tools & Related Products industry has been grappling with persistent weakness in the manufacturing sector, tepid new orders and supply-chain disruptions. A tough labor market also creates concerns for the industry.Nevertheless, industry participants’ focus on cost-control measures and investments in product development have allowed them to stay competitive in the market. Lincoln Electric Holdings, Inc., Stanley Black & Decker, Inc. and Enerpac Tool Group Corp. appear well-poised to stay afloat in challenging market conditions.About the IndustryThe Zacks Manufacturing-Tools & Related Products industry comprises companies that develop and distribute hand and mechanics tools, hydraulic tools, engineered fastening systems and heavy-lifting technology solutions. Arc-welding products, robotic-welding packages, fume-extraction equipment, oxy-fuel cutting equipment, plasma cutters, healthcare solutions, electronic security solutions and other products are also produced by some tool-makers.The highly advanced tools are used in industrial, commercial, oil & gas, mining, automotive and other industries. The providers of electronic security solutions cater to the commercial, retail, government, financial and healthcare markets. Regarding international operations, some industry players provide products and services to customers in North and South America, Japan, Europe, Canada, Asia and the Middle East.Major Trends Shaping the Manufacturing Tools Industry's prospectsWeakness 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, the manufacturing sector contracted for the sixth consecutive month in August. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 48.7% in August.A figure less than 50% indicates a contraction in manufacturing activity. Although the New Orders Index expanded in August, touching 51.4%, the metric was in contraction territory for the previous six consecutive months.Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues and tariff-related uncertainties might inflate raw material and other logistics expenses. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries in August. This followed a brief improvement in July after seven months of slower performance through June.The rise in expenses, along with a tough labor market, poses a threat to margins. That said, companies have been focused on cost management initiatives to mitigate cost-related challenges. These include streamlining operational structures, optimizing supply networks and implementing effective pricing policies.Investments in Product Development & Innovation: Industry players’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market is expected to drive growth. While this augurs well for the industry’s long-term growth, hefty investments in research and development often leave companies with highly leveraged balance sheets.Zacks Industry Rank Indicates Weak ProspectsThe Zacks Manufacturing-Tools & Related Products industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #159. This rank places it in the bottom 35% of 246 Zacks industries.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak prospects in the near term. 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.The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of negative earnings prospects for the constituent companies in aggregate. Looking at the aggregate earnings estimate revision, it appears that analysts are keeping less faith in this group's earnings growth potential. The industry’s earnings estimates for 2025 has declined 10.7% over the past year.Despite bleak near-term prospects, we will present a few stocks that you may want to retain in your portfolios. But it is worth taking a look at the industry’s shareholder returns and current valuation first.Industry Lags Both Sector & S&P 500The Zacks Manufacturing-Tools & Related Products industry has underperformed the sector and the S&P 500 composite index in the past year.Over this period, the industry has declined 5.9% against the sector and the S&P 500 Index’s rise of 3.8% and 17.5%, respectively.Industry's Current ValuationOn the basis of forward P/E (F12M), which is a commonly used multiple for valuing manufacturing tools and related product stocks, the industry is currently trading at 18.04X compared with the S&P 500’s 23.34X. It is also below the sector’s P/E (F12M) ratio of 19.87X.In the past five years, the industry has traded as high as 22.13X, as low as 11.65X and at the median of 18.38X.3 Manufacturing Tool Stocks to Keep a Tab OnLincoln Electric: Based in Cleveland, OH, Lincoln Electric is engaged in manufacturing and reselling welding and cutting products. The company is poised to gain from solid momentum in the Harris Products segment, which is witnessing volume growth across all product areas, led by heating, ventilation, and air conditioning (HVAC) and retail channel expansion.Product launches in the automation solutions market and investments in new technologies are also expected to support this Zacks Rank #1 (Strong Buy) company’s growth. You can see the complete list of today’s Zacks #1 Rank stocks here.Lincoln Electric reported better-than-expected results in three of the last four quarters, while missing the mark in one, the earnings surprise being 10.6%, on average. Shares of this company have surged 22.1% in the past year.Stanley Black: Headquartered in New Britain, CT, Stanley Black manufactures tools (power and hand tools) and related accessories and engineered fastening systems, among other items. SWK is benefiting from solid momentum in the DEWALT business. Cost-reduction efforts and supply-chain optimization programs are also expected to support this Zacks Rank #3 (Hold) company’s margin in the quarters ahead.Stanley Black reported better-than-expected results in each of the last four quarters, the earnings surprise being 57.3%, on average. Although the company’s shares lost 33.1% in the past year, they rose 8.6% in the past three months.Enerpac Tool: Based in Menomonee Falls, WI, EPAC is involved in the designing, manufacturing and distribution of various industrial tools, including high-pressure hydraulic tools and controlled force products. Enerpac Tool is benefiting from solid momentum in the Industrial Tools & Services segment, driven by an increase in demand for heavy lifting technology products. The acquisition of DTA also bodes well for it.EPAC carries a Zacks Rank of 3. For the fourth quarter of fiscal 2025 (ended August 2025), the company’s consensus estimate for earnings is pinned at 51 cents per share, indicating a 2% increase from the year-ago quarter’s number.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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC): 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