BofA Securities has laid out its preferred names in the industrials and multi-industry cohort as firms approach the second quarter of 2026, naming AMETEK its top pick amid signs of accelerating short-cycle orders and persistent strength in data center-related demand.
The bank projects median organic year-over-year growth for the sector will decelerate sequentially to 5.1% in Q2 2026 from 6.0% in the prior quarter. Despite that sequential softness, BofA models show organic growth accelerating on both two- and three-year stacked bases, suggesting improving momentum over a multi-year horizon.
AMETEK
BofA places AMETEK atop its list after the company reported first-quarter organic orders growth of 22% year-over-year, with gains above 10% across each segment. Management told BofA at the bank May conference that demand strength had continued through April. Based on the stronger orders trajectory anticipated in the second quarter, BofA sees upside risk to its 2026 estimates.
On the corporate actions front, AMETEK disclosed an agreement to acquire Indicor Instrumentation for $5 billion in cash and also completed its acquisition of First Aviation Services. The firm retention of analyst interest is reflected in Rothschild Redburn maintaining its Buy rating on the company.
Rockwell Automation
BofA reported takeaways from its site visit to Automate 2026 indicating that industrial automation demand is broadening, with limited pushback on price - a dynamic that provides a constructive backdrop for Rockwell Automation. The bank proprietary indicators and channel checks point to strengthening short-cycle demand, and the BofA Industrial Momentum Indicator showed month-over-month improvement.
Rockwell has launched new software platforms to coordinate manufacturing processes, including FactoryTalk Orchestration and FactoryTalk ResilientEdge. Separately, DA Davidson initiated coverage on Rockwell with a Neutral rating.
ITT Inc.
Orders in ITT short-cycle industrial businesses improved in Q4 2025 and accelerated further in Q1 2026. At BofA conference on May 12, ITT 's CEO described April as "equally strong" and emphasized there was "no pre-buy" activity and "no inventory buildup." Management also called European defense spending a "big opportunity" and said the company has placed orders for machines to expand capacity for European defense work.
ITT reported first-quarter 2026 earnings of $1.98 per share on revenue of $1.2 billion, beating analyst expectations. The company completed its acquisition of Aerospace Contacts for $31 million, and DA Davidson responded by raising its price target on the stock.
Forgent Power Solutions
BofA expects orders from neoclouds to outpace hyperscale or colocation demand, favoring companies that have expanded capacity and operate with below-average lead times. The bank anticipates that company management will provide initial fiscal year 2027 revenue guidance that supports upside relative to consensus, which would be constructive for firms exposed to neocloud-related equipment demand.
Innio N.V.
Following Innio 's February initial public offering, BofA initiated coverage and anticipates equipment orders of $1.22 billion in the second quarter, representing growth of 122% year-over-year. That orders profile would underpin potential upside to BofA's fiscal year estimates for revenue of $3.80 billion and adjusted EBITDA of $720 million.
Post-IPO, Innio has attracted Buy or equivalent ratings from multiple firms, including BofA Securities, UBS, Morgan Stanley and Goldman Sachs.
Implications for investors and markets
BofA's sector work highlights a mixed near-term growth signal - sequential deceleration in median organic growth - alongside improving medium-term momentum as shown by two- and three-year stacked growth. The bank's company-level checks and conference engagement point to strengthening short-cycle orders across industrial automation, certain industrial components and equipment for data center-related customers. Corporate M&A and acquisitions are also prominent in the narrative, with AMETEK's planned $5 billion Indicor transaction and ITT's small acquisition noted.
Investors focused on industrials may view the bank's top picks as exposure to improving short-cycle dynamics, software-enabled automation growth and select equipment demand tied to cloud and neocloud expansion.