With fresh 50% U.S. “emergency” tariffs on Canadian goods shaking long standing trade links, investors are suddenly being forced to rethink which companies are most exposed to cross border friction and which ones lean more on U.S. based production. That kind of shock can shuffle winners and laggards quickly, which creates both risk and potential opportunity. This article walks through three stocks from a reshoring focused screener that could be positively exposed to this new backdrop.
The three stocks highlighted below are only a sample from this reshoring focused idea, and the full screen surfaced 20 more U.S. listed industrial and manufacturing companies with similar stories that are not covered here. To identify and analyze the reshoring candidates that best fit your approach, head straight to the U.S.-focused reshoring and domestically oriented industrials screener.
Broadwind (BWEN)
Broadwind is a U.S. based manufacturer of towers, gearing, and industrial components used in power generation and critical infrastructure, which ties it closely to the reshoring and domestically oriented industrials theme. The company generated about $31.6 million from its Gearing segment and $39.6 million from Industrial Solutions, with additional contributions from Heavy Fabrications, all of it reported from U.S. customers. With a market cap of about $104 million, Broadwind sits at the smaller end of the industrial spectrum but remains firmly focused on domestic manufacturing.
Investors looking at reshoring themes may find Broadwind interesting because it is already seeing increased inquiries from customers who want to move sourcing onshore, and management reports that order activity is picking up as a result. The company is tightly linked to U.S. policy for renewables and grid related equipment, which can support demand but also introduces risk if tax credits fade or technology trends move away from its core products. In addition, recent efforts to expand its U.S. footprint and improve manufacturing efficiency mean this is a business where the balance between domestic upside and execution risk is still playing out.
Broadwind’s rising onshore interest and expanding U.S. footprint could be masking a much bigger story for this smaller industrial stock. Get the full context in the 4 key rewards and 2 important warning signs (1 is major!)
Applied Industrial Technologies (AIT)
Applied Industrial Technologies is a Cleveland based distributor of motion, fluid power, flow control, and automation gear that many U.S. factories rely on, which ties it neatly into the reshoring and domestically oriented industrials theme. The business is built around two main segments, with the Service Center arm generating about US$3.2b of revenue and Engineered Solutions contributing roughly US$1.9b, reflecting a mix of day to day maintenance parts and higher value engineered projects. With a market cap around US$12.6b, Applied Industrial Technologies is a large, established player in the industrial supply chain.
Applied Industrial Technologies provides exposure to the practical side of reshoring, where U.S. manufacturers need reliable domestic partners for automation, maintenance, and fluid power systems. Its mix of higher margin Engineered Solutions work and record recent results helps explain why many investors are interested. However, the stock already trades at a premium, and growth expectations are well flagged after August’s guidance and analyst upgrades. In addition, ongoing acquisition activity, exposure to tariff and pricing shifts, and some recent insider selling create a story that appears attractive but also includes several pressure points that may be worth understanding before leaning into the current enthusiasm.
Applied Industrial Technologies’ momentum story can look straightforward, yet the premium pricing and recent insider moves suggest there is more under the surface. Get the full picture in the 2 key rewards and 1 important warning sign
Astronics (ATRO)
Astronics is a U.S. headquartered designer and manufacturer of aerospace, defense, and electronics equipment, which ties it into the reshoring and domestically oriented industrials theme through its role in U.S. aerospace and defense supply chains even though it also serves customers globally. The business is heavily skewed to its Aerospace segment, which generated about $863 million of revenue, with a smaller $79 million contribution from Test Systems and a minor offset from intersegment sales. With a market cap of roughly $3.3b, Astronics is a mid sized player with meaningful exposure to U.S. industrial and defense activity.
Astronics is drawing attention because it is closely linked to U.S. aerospace and defense programs at a time when cross border supply friction is rising, and it remains less exposed to U.S. Canada trade flows than many traditional industrials. The company has been working to clean up its portfolio and improve margins, and is now profitable, yet still carries high debt, one off legal and restructuring hits, and a Test Systems segment that has struggled with project execution. For investors seeking a U.S. focused industrial tied to aircraft production, military electronics, and tariff sensitive supply chains, Astronics presents a mix of growth potential, operational complexity, and risk that may merit further research.
Astronics’ renewed profitability and cleanup story may look compelling, yet the high debt and Test Systems issues raise questions that many investors may be underestimating. Get the context that ties this all together in the 3 key rewards and 2 important warning signs
Seeking Alternatives Before The Crowd?
Fresh ideas can move fast. Some stocks sit under the radar for now, then gather breakout momentum once the crowd catches on. Scan these while it still matters and consider your options.
- Explore potentially sturdier income sources by reviewing a curated 12 dividend fortresses that focuses on companies aiming to combine sizeable yields with balance sheets built to handle tougher conditions.
- Identify early movers in automation and factory efficiency by checking the hand picked 38 robotics and automation stocks geared toward businesses supplying the machines that keep production lines running.
- Monitor infrastructure themes by scanning the focused 38 power grid technology and infrastructure stocks featuring companies involved with equipment and services that keep electricity flowing.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com