Manufacturing PMI Hits 4-Year High: 3 Top Industrial Stocks

U.S. manufacturing activity reached its highest level in more than four years amid strong demand tied to defense spending and the AI infrastructure buildout. The economic backdrop continues to improve, with GDP expected to grow by around 6% in Q3 2026. U.S. production remained strong despite volatility from the Iran conflict, rising energy prices, and inflation concerns. I discuss 3 industrial stocks with Strong Buy and Buy Quant Ratings, offering strong forward growth and solid exposure to manufacturing sector tailwinds. I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income. U.S. Production Grows Despite Uncertainty The U.S. manufacturing sector in July expanded at its fastest rate in more than four years, with solid demand seen across aerospace and defense, machinery, electronics, and activities tied to the AI infrastructure buildout, according to the latest This article was written by Steven Cress, Quant Team Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool designed to help long-term investors create a best-in-class portfolio.Steve is passionate and dedicated to removing emotional biases from investment decisions. Utilizing a data-driven approach, he leverages sophisticated algorithms and technologies to simplify complex, laborious investment research, creating an easy-to-follow, daily updated grading system for stock trading recommendations.Steve was previously the Founder and CEO of CressCap Investment Research until its acquisition by Seeking Alpha in 2018 for its unparalleled quant analysis and market data capabilities. Prior to that, he had also founded the quant hedge fund Cress Capital Management, after spending most of his career running a proprietary trading desk at Morgan Stanley and leading international business development at Northern Trust.With over 30 years of experience in equity research, quantitative strategies, and portfolio management, Steve is well-positioned to speak on a wide range of investment topics.