Zacks Industry Outlook Highlights Stanley Black & Decker, Core & Main, Kennametal and Enerpac Tool Group

For Immediate ReleaseChicago, IL – March 20, 2026 – Today, Zacks Equity Research discusses Stanley Black & Decker, Inc. SWK, Core & Main, Inc. CNM, Kennametal Inc. KMT and Enerpac Tool Group Corp. EPAC.Industry: Manufacturing ToolsLink: https://www.zacks.com/commentary/2886460/4-manufacturing-tools-stocks-to-watch-on-prospering-industry-trendsThe Zacks Manufacturing-Tools & Related Products industry is poised for growth on the back of strength in the manufacturing sector, increased investments in product development and technological advancements. The industry participants' efforts to digitize business operations and expand market presence through strategic acquisitions are expected to foster the growth of the industry.However, cost inflation and challenges due to a shortage of skilled labor have marred the industry's outlook. Stanley Black & Decker, Inc., Core & Main, Inc., Kennametal Inc. and Enerpac Tool Group Corp. are a few industry participants that can capitalize on the opportunities.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 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 Future of the Manufacturing Tools IndustryStrength 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 second consecutive month in February. Per the Institute for Supply Management's (ISM) report, the Manufacturing Purchasing Manager's Index touched 52.4% in February. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 55.8% in the same month.Investments in Product Development & Innovation: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.Acquisition-Based Growth Strategy:The industry participants bank on an acquisition-based growth strategy to expand their customer reach and product offerings. This helps them foray into new markets and solidify their competitive position. Exposure to various end markets helps tool manufacturing companies offset risks associated with a single market.Rising Costs Hurt Margins:Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues might increase raw material and other logistics expenses. The latest ISM report's Supplier Deliveries Index reflects slower deliveries for the third straight month in February.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.Zacks Industry Rank Indicates Solid ProspectsThe Zacks Manufacturing-Tools & Related Products industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #74. This rank places it in the top 30% of 244 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates strong 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.We will present a few stocks from the industry that you may want to consider for your portfolio. But before that, it is worth taking a look at the industry's shareholder returns and its current valuation first.Industry Underperforms 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 appreciated 6.7% compared with the sector and the S&P 500 index's growth of 22.1% and 21.7%, respectively.Industry's Current ValuationOn the basis of forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing tools and related product stocks, the industry is currently trading at 16.57X compared with the S&P 500's 21.63X. It is also below the sector's P/E (F12M) ratio of 21.54X.Over the past five years, the industry has traded as high as 22.13X and as low as 11.65X, with a median of 17.97X.Four Manufacturing Tool Stocks to Keep a Tab OnKennametal:Based in Latrobe, PA, Kennametal is a manufacturer, marketer and distributor of high-speed metal cutting tools, tooling systems and wear-resistant parts. Its products are marketed through several channels to the end users, including manufacturers of machine tools, transportation vehicles and others.The company is benefiting from an increase in aerospace original equipment manufacturer build rates in the Americas region, easing supply-chain pressures in the EMEA region and robust U.S. and international defense spending volumes within the Metal Cutting segment. Strength in the energy market, supported by data center power generation wins, also augurs well. Its investments in product development and manufacturing facilities also bode well.This Zacks Rank #1 (Strong Buy) company's Zacks Consensus Estimate for fiscal 2026 (ending June 2026) earnings has remained steady over the past 30 days. You can see the complete list of today's Zacks #1 Rank stocks here.Core & Main:Based in Saint Louis, MO, CNM provides wastewater, water, storm drainage and fire protection products and services to private water companies, municipalities and professional contractors. The company's products and services are used in the maintenance, repair, replacement and construction of infrastructure for water, storm drainage, wastewater and fire protection systems.CNM is benefiting from increased demand for fusible high-density polyethylene, treatment plant solutions and geosynthetics products. The acquisitions of certain assets and liabilities of Canada Waterworks in September 2025 also bode well for Core & Main.CNM currently carries a Zacks Rank #3 (Hold). The company's fiscal 2027 (ended January 2027) earnings estimate has remained unchanged in the past 30 days.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 strength in the product business. The acquisition of DTA also bodes well for the company.EPAC currently carries a Zacks Rank of 3. For fiscal 2026 (ending August 2026), the company's consensus estimate for earnings has remained steady in the past 30 days.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. The company's commitment to rewarding shareholders through dividend payments adds to its appeal. Cost-reduction efforts and supply-chain optimization programs are also expected to support Stanley Black's margin in the quarters ahead.SWK currently carries a Zacks Rank of 3. For 2026, the company's consensus estimate for earnings has increased 0.6% in the past 30 days.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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Kennametal Inc. (KMT): Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC): Free Stock Analysis Report Core & Main, Inc. (CNM): 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