Two National Guard members shot near White House
Investing.com - Rockwell Automation (NYSE:ROK) is positioned as the primary beneficiary of accelerating third-quarter order momentum across U.S. industrial sectors, according to recent market analysis from Morgan Stanley.
The data shows industrial machinery orders increased 13% sequentially in the third quarter compared to the second quarter, while construction machinery orders rose 14% quarter-over-quarter. Other strong performers included communication equipment (+7%), process machinery (+5%), and power transmission (+5%).
Parker-Hannifin (NYSE:PH), Regal Rexnord (NYSE:RAL), and Hubbell (NYSE:HUBB) were also identified as beneficiaries of the third-quarter order ramp. Conversely, the data screened negative for Lennox (NYSE:LII), Carrier (NYSE:CARR), and Otis (NYSE:OTIS), with HVACR orders declining 3% sequentially due to sharp residential declines.
The acceleration in industrial machinery orders following President Donald Trump’s "Liberation Day" tariff announcements in April suggests companies are shifting manufacturing production and investment to the U.S. market in response to changing global supply chain costs, potentially signaling the beginning of a U.S. manufacturing capital expenditure upcycle.
Industrial machinery orders have declined 50% in real terms since China joined the WTO in 2000, highlighting the significant opportunity for growth as reshoring trends continue to develop, with analysis suggesting reshored capital expenditure carries ten times the profit uplift for U.S. industrial companies compared to international capital expenditure.
Get more stock picks by Wall Street analysts by upgrading to InvestingPro - get 55% off today.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.