Zacks Industry Outlook Highlights Siemens, Fastenal and Global Industrial Company

For Immediate ReleaseChicago, IL – March 24, 2026 – Today, Zacks Equity Research discusses Siemens SIEGY, Fastenal FAST and Global Industrial Company GIC.Industry: Industrial ServicesLink: https://www.zacks.com/commentary/2887871/3-industrial-services-stocks-to-watch-despite-industry-headwindsThe Zacks Industrial Services industry's near-term outlook has been clouded by a weak manufacturing sector as customers remain wary of the effects of tariffs. Increased input costs and the implementation of tariffs are expected to erode industry margins.Despite the current setback, the rise in e-commerce activities will be a key catalyst for the industry. Companies like Siemens, Fastenal and Global Industrial Company are positioned for growth by leveraging strategies to capitalize on this demand. They have also been lowering costs, increasing productivity and efficiency, and investing in automation and digitization, which will aid growth.Industry DescriptionThe Zacks Industrial Services industry comprises companies that provide industrial equipment products and MRO (maintenance, repair and operations) services. It includes routine maintenance, emergency maintenance and spare part inventory control, which keep a facility and its equipment in good operating condition. Industry participants serve a wide array of customers, ranging from commercial, government and healthcare to manufacturing.The industry's products (power tools, hand tools, cutting fluids, lubricants, personal protective equipment and consumables) are utilized in production and plant maintenance but are not directly related to customers' core products or services. These companies reduce MRO supply-chain costs and improve customers' plant floor productivity by offering inventory management and process and procurement solutions.Trends Shaping the Future of the Industrial Services IndustryManufacturing Activity Shows Signs of Growth, but Outlook Remains Uncertain: The manufacturing sector contributes around 70% to the industry's revenues. The Institute for Supply Management's manufacturing index, after being in contraction for 26 consecutive months until December 2024, had moved up above 50% (indicating expansion) in January and February 2025. It slipped back into contraction in March 2025 and remained below 50% through December 2025 as customer spending remained subdued due to the impact of tariffs.In January 2026, the index moved back into expansion territory with a reading of 52.6%, followed by a slightly slower 52.4% in February. However, given last year's trend, the durability of this recovery remains uncertain. After four straight readings in contraction, the New Orders Index expanded for the second straight month in February 2026. The reading for the month was 55.8%. lower than January's 57.1%. Also, the index has not delivered consistent growth since the end of its 24-month expansion streak in May 2022.High Costs and Impact of Tariffs are Concerning: The industry has been experiencing significant inflation levels, including higher prices for labor, freight and fuel. The companies are witnessing labor shortages for some positions and incurring steep labor costs to meet demand. Industry players are focusing on pricing actions, cost-cutting measures, efforts to improve productivity and efficiency and the diversification of the supplier base to mitigate some of these headwinds. The imposition of tariffs and retaliatory tariffs will also heighten costs for the industry.E-commerce to be a Growth Driver: MRO demand is significantly impacted by the evolution of e-commerce. Customer demand for highly tailored solutions, with real-time access to information and rapid delivery of products, is rising. Customers want to execute their business activities in the most efficient way possible, which often means online. E-commerce is expected to surge due to rising Internet penetration, widespread smartphone adoption and the convenience of online shopping.Additionally, advancements in digital payments, logistics and personalization are making the online shopping experience faster, safer and more customer-centric. To capitalize on this trend, industrial service companies are heavily investing in improving their digital capabilities and increasing their e-commerce share.Zacks Industry Rank Indicates Dull ProspectsThe group's Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bearish prospects in the near term. The Zacks Industrial Services Industry, a 16-stock group within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #232, which places it in the bottom 5% of 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.Before we present a few Industrial services stocks that investors can add to their portfolio, it is worth taking a look at the industry's stock-market performance and its valuation picture.Industry vs S&P 500 & SectorThe Industrial Services industry has underperformed its sector and the Zacks S&P 500 composite over the past year.Over this period, the industry has declined 8.5% against the sector's gain of 16.6%. The Zacks S&P 500 composite has moved up 15.8%.Industry's Current ValuationOn the basis of the forward 12-month EV/EBITDA ratio, a commonly used multiple for valuing Industrial Services companies, we see that the industry is currently trading at 31.58X compared with the S&P 500's 11.51X and the Industrial Products sector's forward 12-month EV/EBITDA of 7.47X.Over the last five years, the industry traded as high as 40.54X and as low as 24.47X, the median being 31.58X.3 Industrial Services Stocks to Keep an Eye OnSiemens: The company reported a 10% increase in orders in the first quarter of fiscal 2026, driven by double-digit growth across most industrial segments. Order momentum was led by Smart Infrastructure, which achieved record-high intake, alongside strong gains in Digital Industries and solid growth in Mobility. Revenues rose 8%, and the company anticipates comparable revenue growth of 6–8% for fiscal 2026, with a book-to-bill ratio expected to remain above one.Artificial Intelligence continues to be a key growth catalyst, with the company scaling industrial AI across its core sectors in collaboration with leading partners. By embedding AI across design, development, products and operations, it is delivering measurable value to customers. The company also benefited from the acquisitions of Altair Engineering Inc., and Dotmatics. Additionally, the company recently announced an investment of more than $165 million to expand manufacturing capacity in the United States, enhancing its ability to produce electrical infrastructure to support the rapid expansion of Artificial Intelligence and large-scale data centers.The Zacks Consensus Estimate for the Munich, Germany-based company's fiscal 2026 earnings has been revised 2% upward in the past 60 days. The consensus mark indicates year-over-year growth of 25%. SIEGY has a trailing four-quarter earnings surprise of 3.7%, on average. The company currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Fastenal: The company reported a 11% increase in net sales in the fourth quarter of 2025. Despite a weak industrial production trend in the quarter, this performance was supported by stronger customer contract signings. Manufacturing end markets outperformed, led by key account growth and fastener expansion. Other end market sales were favorably impacted by growth with transportation and data center customers. In the quarter, daily eBusiness sales rose 6.4%. Sales through Digital Footprint were 62% of total sales, which the company aims to lift to 66% in 2026.Fastenal is also making concerted efforts to control costs and offset cost inflation, particularly in container and transportation costs. The strategies for the same include automating warehouses, increasing delivery efficiency through its trucking network and selling more private-label products with higher margins. This will aid the company to improve its efficiency and also boost margins.The Zacks Consensus Estimate for the Winona, MN-based company's fiscal 2026 earnings has moved up 0.8% in the past 60 days. The consensus mark indicates year-over-year growth of 12.8%. FAST has a long-term estimated earnings growth rate of 12.7% and currently carries a Zacks Rank of 3.Global Industrial Company: The company reported a 14% increase in revenues for the fourth quarter of 2025, with average daily sales rising 7.4%, supported by both volume growth and pricing gains. It continues to advance its strategic initiatives aimed at driving profitable top-line growth and scaling the business in 2026 and beyond. These efforts include transforming its business model to become more customer-centric and reshaping its go-to-market strategy to better align with evolving customer needs. In 2025, the company also invested in its CRM and service platforms to gain deeper customer insights, enabling better alignment of its services and solutions and enhancing the overall value delivered to customers.The Zacks Consensus Estimate for the Port Washington, NY-based company's fiscal 2026 earnings has been revised 1% upward in the past 60 days. The consensus mark indicates year-over-year growth of 8%. GIC has a trailing four-quarter earnings surprise of 24.1%, on average. General Industrial has a long-term estimated earnings growth rate of 16% and a Zacks Rank of 3.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.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.SeeWant 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 Fastenal Company (FAST): Free Stock Analysis Report Global Industrial Company (GIC): Free Stock Analysis Report Siemens AG (SIEGY): 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