The industrial sector has been among Wall Street’s strongest performers in 2026, with the State Street Industrial Select Sector SPDR ETF (XLI) gaining 14.5% year to date as of July 29.
Investors have increasingly favored industrial companies as demand for infrastructure development, defense equipment, aerospace, electrical systems and factory automation stayed resilient despite an uncertain macroeconomic backdrop.
Companies tied to artificial intelligence infrastructure also benefited as rising investment in data centers boosted demand for electrical equipment, power management systems and industrial machinery.
RTX Corporation (RTX), Crown Holdings (CCK) and Kaiser Aluminum Corporation (KALU) are three stocks that have capitalized on these favorable conditions throughout the year.
Economic data released throughout 2026 has been painting a gradually improving picture for U.S. manufacturing activity and factory output.
The Institute for Supply Management’s Manufacturing PMI has spent the last 20 months above the 50-point expansion threshold, with the index registering 53.3 percent in June, down 0.7 percentage point from May.
S&P Global’s Manufacturing PMI has also remained in expansion territory for much of 2026, signaling that broader manufacturing conditions are continuing to stabilize.
Long-term structural themes including federal infrastructure spending, manufacturing reshoring initiatives and rising defense budgets amid geopolitical tensions have created sustained demand across industrial businesses.
Crown Holdings (CCK), which manufactures beverage, food and aerosol packaging solutions serving markets worldwide, carries an expected earnings growth rate of 7.7% for the current year, with its Zacks Consensus Estimate improving 4.2% over the past 60 days.
RTX (RTX), the aerospace and defense giant providing aircraft engines, avionics, missile defense and military technologies to commercial and government customers, has an expected earnings growth rate of 14% for the current year.
RTX’s Zacks Consensus Estimate for current-year earnings has increased 3.8% over the past 60 days, and the company holds a Zacks Rank of 2 with a VGM Score of B.
Kaiser Aluminum (KALU), which produces specialty aluminum products for aerospace, automotive, packaging and industrial applications, leads the group with an expected earnings growth rate of 51.2% for the current year.
KALU’s Zacks Consensus Estimate for current-year earnings has increased 5% over the past 60 days, earning the company a Zacks Rank of 1 and a VGM Score of A.
Although concerns over tariffs, global trade and manufacturing activity periodically created volatility, the industrial sector’s earnings resilience and structural growth exposure have allowed it to outperform the broader market in 2026.
