For Immediate Release
Chicago, IL – July 7, 2026 – Today, Zacks Equity Research discusses Eaton Corp. plc ETN, Emerson Electric Co. EMR, EnerSys ENS and Franklin Electric Co., Inc. FELE.
Industry: Manufacturing - Electronics
The Zacks Manufacturing - Electronics industry is well-positioned to benefit from solid momentum in the manufacturing sector, stable demand across the electronic services end market and increasing adoption of advanced manufacturing technologies. A surge in e-commerce activities is also likely to support the industry’s growth.
However, supply-chain issues have been weighing on the performance of some industry players. Eaton Corp. plc, Emerson Electric Co., EnerSys and Franklin Electric Co., Inc. are a few industry participants that are expected to capitalize on the opportunities.
Industry Description
The 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.
4 Manufacturing Electronics Industry Trends in Focus
Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the sixth consecutive month in June. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 53.3% in June. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 56% in the same month.
Strength in the Electronics Services Market: 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.
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 Indicates Bright Prospects
The Zacks Manufacturing – Electronics industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #77. This rank places it in the top 31% 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 Underperforms Sector & Outperforms S&P 500
The Zacks Manufacturing – Electronics industry has underperformed the broader sector while outperforming the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 11.8% compared with the sector’s rise of 13.4% and the S&P 500 Index’s increase of 8%.
Industry's Current Valuation
On 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 23.56X compared with the S&P 500’s 21.07X. However, it is above the sector’s P/E ratio of 21.98X.
Over the past five years, the industry has traded as high as 25.64X, as low as 14.22X and at the median of 20.99X.
4 Manufacturing Electronics Stocks to Keep Tabs On
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 strong electrification-driven demand, reflected in rising orders and an expanding backlog. The company is also poised to gain from increased investments in capacity expansion and innovation initiatives.
Shares of this Zacks Rank #3 (Hold) company rose 11.2% in the past year. It beat estimates in three of the last four reported quarters, while matching the mark in one, delivering an average earnings surprise of 1%. 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 segment, driven by strength in the power end markets. Robust growth across the Americas bodes well for the Sensors segment. Solid performance of the power and life sciences end markets is driving the Control Systems & Software segment.
Shares of this Zacks Rank #3 company have inched up 0.5% in the past year. The company beat estimates in two of the last four reported quarters, while matching the mark in the other two, delivering an average earnings surprise of 1.1%.
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 surged 134.5% 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 4.4%.
Franklin Electric: Based in Fort Wayne, IN, Franklin Electric is engaged in providing water and fuel pumping systems to the industrial and petroleum equipment distributors, oil and utility companies and original equipment manufacturers. FELE is well-positioned to benefit from solid momentum in the Water Systems segment, driven by an increase in demand for all other surface pumping equipment and water treatment products. Also, higher demand for fuel management systems and pumping systems within the Energy Systems segment bodes well for it.
Shares of this Zacks Rank #3 company have soared 15.1% in the past year. The company beat estimates in three of the last four reported quarters and missed the mark in one, delivering an average earnings surprise of 2.6%.
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them 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
Emerson Electric Co. (EMR): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Franklin Electric Co., Inc. (FELE): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).