Ticker: ZBRA
Year-to-date performance: -19%
What the analysts say: “We think 2H25 results and likely demand momentum into 2026 will drive upside following the stock’s 2Q correction. We expect upward revisions to 2026 consensus EPS estimates as 2H results beat on margins, and Elo deal accretion is added to models, with notable potential upside to 4Q sales should lingering tariff uncertainty dissipate by November.”
Zebra’s valuation, which is near a multi-year low, also makes it an attractive investment opportunity, analysts said, adding that the company was the bank’s top pick within the SMID Industrials sector.
Ticker: SPXC
Year-to-date performance: +24%
What the analysts say: “We remain confident in the underlying business and earnings set-up for 2H and into 2026. We sense that newly raised capital could be deployed sooner rather than later, not only for inorganic investments like Ingenia’s US capacity build, but also for acquisitions.”
The company also has a “unique” and outsize opportunity in data centers, UBS said, adding that the stock was among its list of “winners that should keep winning” in the sector.
Ticker: ITT
Year-to-date performance: +24%
What the analysts say: “As outlined in our last Q’s preview, we have viewed 2025 EPS guidance as relatively conservative; we continue to expect ITT to navigate towards the high end of the latest guidance range of $6.35-$6.55,” analysts wrote.
“If anything, we think our model forecast of ~3% organic growth this year could prove light, especially considering orders and backlog growth the last few Qs.”
Ticker: CR
Year-to-date performance: +19%
What the analysts say: “We continue to like the set up for CR earnings; we expect 2025 EPS to exceed guidance range of $5.50-$5.80 (UBSe is $5.95). Updated guidance from 2Q seems conservative to us, particularly on A&E sales growth and implied 2H margins.”
Ticker: CGNX
Year-to-date performance: +27%
What the analysts say: “CGNX growth starting to broaden outside of warehouse and 2026 Street estimates look too low; also positive on new mgmt.”
CGNX’s second-quarter results also “reaffirmed” the bank’s “Buy” rating on the stock, analysts said, pointing to the company’s earnings beat in the last reporting period.
Ticker: TDY
Year-to-date performance: +23%
What the analysts say: “TDY’s orders strength keep us constructive on 2H results; return of M&A flywheel does not look priced in.”
They continued: “The longer cycle A&D businesses are likely seeing continued healthy growth, and might even be outperforming given military funding stimulus in the EU and rising drone-based operations which we think benefits TDY.”
Ticker: XYL
Year-to-date performance: +22%
What the analysts say: “Similar to last Q, we expect XYL to report 3Q results that are ~in-line to slightly better than mgmt EPS guidance ($1.20-$1.25), and we are reaffirming our 2025 EPS estimates which are at the high end of guidance range.”
Ticker: GTES
Year-to-date performance: +19%
What the analysts say: “We continue to believe that Street estimates are too low for 2026. Considering the backdrop of 3+ year demand downturn, we would expect a lower interest rate / less uncertainty tariff environment to support HSD organic growth acceleration as short cycle activity returns.”
Ticker: VNT
Year-to-date performance: +17%
What the analysts say: “We reiterate our Buy rating on VNT. We see upside to our $50 PT should: 1) the stock begin garnering more investor attention and re-rate higher from its deeply discounted current P/E multiple; and 2) the company continues buying back shares at its current pace representing ~1/2 of FCF.”