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Bank of America Names Top Industrial Stocks for Second Quarter 2026
Summary
Bank of America Securities has identified its leading industrial and multi-industry stock picks for the second quarter of 2026, with AMETEK leading the list. The selections are based on factors including accelerating short-cycle orders and robust demand in sectors like data centers and automation.
BofA Securities has released its top stock selections in the industrials sector heading into the second quarter of 2026. While the investment bank anticipates a sequential deceleration in median organic year-over-year growth for the sector, it models an acceleration in growth when viewed on a two- and three-year stacked basis.
AMETEK was named the top pick, driven by signs of accelerating short-cycle orders and continued strong demand from data centers. The company reported 22% year-over-year organic orders growth in the first quarter, with strength continuing into April. BofA noted potential upside to 2026 estimates based on the expected order strength.
Rockwell Automation was also highlighted, with BofA citing broadening demand for industrial automation and strengthening short-cycle demand trends. Similarly, ITT Inc. was recognized for improving orders in its short-cycle industrial businesses. ITT's CEO described April as "equally strong" and pointed to European defense spending as a significant opportunity for the company.
AdOther companies on the list include Forgent Power Solutions, which BofA expects to benefit from growing orders by "neoclouds," and Innio N.V., a recent IPO. BofA anticipates Innio will report a 122% year-over-year increase in equipment orders for the second quarter, which could support higher-than-expected revenue and earnings for the fiscal year.