Industrial-stock metrics will shift from orders to organic growth: UBS
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Companies in the manufacturing sector whose third-quarter earnings beat Wall Streetâs estimates are best poised for gains as they report results in the next few weeks, according to analysts at financial-services firm UBS.
âPositive revisions will be rewarded as market sentiment and positioning have turned more negative over the last month,â Chris Snyder, analyst at UBS, said in an October 10 report. âWhile we have viewed orders as the industrial key performance indicator since the start of the year, we now prioritize Q4 organic guides as the KPI to follow as this will serve as the jumping off point for 2024 expectations.â
Organic revenue and earnings growth typically strips out the effects of foreign-exchange moves, mergers, acquisitions and divestitures.

Amphenol (NYSE:APH), Eaton (NYSE:ETN), 3M (NYSE:MMM), Trane Technologies (NYSE:TT) and Stanley Black & Decker (NYSE:SWK) are best positioned going into earnings season, according to UBS. The bank is more cautious toward W.W. Grainger (NYSE:GWW), Hubbell (NYSE:HUBB), Honeywell International (NASDAQ:HON) and Allegion (NYSE:ALLE).


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