BofA Securities’ Q2 2026 Industrial Stock Picks
BofA Securities released its list of top stock selections in the industrials and multi‑industry sector for the second quarter of 2026, emphasizing accelerating short‑cycle order activity and sustained data‑center demand as key drivers.
Sector‑wide Growth Outlook
The bank projects median organic year‑over‑year growth to slow sequentially in Q2 2026 to 5.1% from 6.0% in the prior quarter, yet on a two‑ to three‑year stack the model shows organic growth accelerating across the sector.
AMETEK – Lead Pick
AMETEK posted first‑quarter organic order growth of 22% year‑over‑year, with every segment delivering gains above 10%. At BofA’s May conference the company confirmed that demand strength persisted through April. BofA anticipates upside to 2026 earnings estimates based on expected stronger order flow in the second quarter. The company also announced a $5 billion cash agreement to acquire Indicor Instrumentation and completed its acquisition of First Aviation Services. Rothschild Redburn kept its Buy rating on AMETEK.
Rockwell Automation
Following BofA’s visit to Automate 2026, the bank noted that industrial automation demand is broadening with no major price push‑backs, providing a supportive backdrop for Rockwell Automation. Proprietary indicators and channel checks point to strengthening short‑cycle demand, and the BofA Industrial Momentum Indicator improved month‑over‑month. Rockwell has launched new software platforms, FactoryTalk Orchestration and FactoryTalk ResilientEdge, to better coordinate manufacturing processes. DA Davidson initiated coverage of the company with a Neutral rating.
ITT Inc.
Orders in ITT’s short‑cycle industrial businesses improved in Q4 2025 and accelerated further in Q1 2026. At BofA’s May 12 conference, ITT’s CEO described April as “equally strong” with “no pre‑buy” and “no inventory buildup,” and highlighted European defence spending as a “big opportunity,” noting that the firm has already placed orders for machines to add capacity for European defence. ITT reported first‑quarter 2026 earnings of $1.98 per share on revenue of $1.2 billion, beating analyst expectations. The company also completed the acquisition of Aerospace Contacts for $31 million, and DA Davidson raised its price target on the stock.
Forgent Power Solutions
BofA expects orders from neocloud providers to grow faster than hyperscale or colocation demand, which should benefit firms that have added capacity and enjoy below‑average lead times. The bank anticipates that management will provide initial fiscal‑year‑2027 revenue guidance that is supportive of upside to consensus expectations.
Innio N.V.
BofA recently initiated coverage of Innio N.V. after its February initial public offering. The bank projects that second‑quarter results will be highlighted by equipment orders of $1.22 billion, representing a 122% year‑over‑year increase, which should underpin upside to BofA’s fiscal‑year estimates of $3.80 billion in revenue and $720 million in adjusted EBITDA. Post‑IPO, Innio has attracted new coverage with Buy or equivalent ratings from BofA Securities, UBS, Morgan Stanley, and Goldman Sachs.
This article was generated with AI assistance and reviewed by an editor.