U.S. industrial production rose 0.7% in January following a 0.2% gain in December, while the ISM Manufacturing PMI climbed to 52.6 points, marking the first sector expansion since 2022 and driven by a 9.7-point surge in new orders.

RBC Bearings projects 23.6% earnings growth this year, with analysts’ consensus estimate lifted 4.6% over the past 60 days, earning the company a Zacks Rank #1 based on strong demand for its engineered bearings and precision components.

Eased inflation and 75 basis points of rate cuts last year have lowered borrowing costs, supporting manufacturing investment, though high input prices and labor constraints remain potential headwinds to continued output growth.