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U.S. Machinery Industry Analysis

UpdatedFeb 23, 2026
DataAggregated Company Financials
Companies187
  • 7D0.6%
  • 3M25.4%
  • 1Y43.9%
  • YTD19.8%

Last week, the Machinery industry hasn't moved much but Deere is up 9.9% in that time. The past year has been better, since the industry has gained 44% in that time. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

Has the U.S. Machinery Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 23 Feb 2026US$1.5tUS$449.5bUS$42.7b29.9x35.6x3.4x
Wed, 21 Jan 2026US$1.4tUS$450.6bUS$43.7b26.5x31.5x3.1x
Fri, 19 Dec 2025US$1.2tUS$450.9bUS$43.7b25.4x28.5x2.8x
Sun, 16 Nov 2025US$1.2tUS$449.4bUS$43.8b23.9x27.5x2.7x
Tue, 14 Oct 2025US$1.1tUS$446.9bUS$44.9b23.5x25.3x2.5x
Thu, 11 Sep 2025US$1.1tUS$447.0bUS$44.2b24.5x25.4x2.5x
Sat, 09 Aug 2025US$1.1tUS$447.6bUS$44.3b23.3x25.3x2.5x
Mon, 07 Jul 2025US$1.1tUS$448.4bUS$44.6b23.9x25.1x2.5x
Wed, 04 Jun 2025US$1.0tUS$449.2bUS$44.5b23.4x23.2x2.3x
Fri, 02 May 2025US$960.0bUS$453.8bUS$46.9b21.4x20.5x2.1x
Sun, 30 Mar 2025US$993.7bUS$457.3bUS$48.2b20.3x20.6x2.2x
Tue, 25 Feb 2025US$1.1tUS$458.0bUS$48.0b23.7x22.3x2.3x
Thu, 23 Jan 2025US$1.1tUS$467.3bUS$47.9b23.6x23.4x2.4x
Sat, 21 Dec 2024US$1.0tUS$467.6bUS$47.9b22.6x21.8x2.2x
Mon, 18 Nov 2024US$1.1tUS$471.7bUS$49.0b24.1x22.4x2.3x
Wed, 16 Oct 2024US$1.1tUS$474.2bUS$49.4b21.7x21.6x2.2x
Fri, 13 Sep 2024US$969.5bUS$474.2bUS$49.4b20.5x19.6x2x
Sun, 11 Aug 2024US$954.0bUS$476.5bUS$50.1b21x19x2x
Tue, 09 Jul 2024US$945.1bUS$476.9bUS$51.6b19.9x18.3x2x
Thu, 06 Jun 2024US$966.6bUS$477.1bUS$51.3b22.5x18.8x2x
Sat, 04 May 2024US$994.0bUS$479.1bUS$51.7b22.5x19.2x2.1x
Mon, 01 Apr 2024US$1.1tUS$476.8bUS$47.9b23.9x22.2x2.2x
Wed, 28 Feb 2024US$987.5bUS$476.8bUS$47.5b24.4x20.8x2.1x
Fri, 26 Jan 2024US$948.8bUS$486.4bUS$48.3b22.8x19.6x2x
Sun, 24 Dec 2023US$964.1bUS$484.9bUS$47.8b22.8x20.2x2x
Tue, 21 Nov 2023US$880.7bUS$484.0bUS$47.5b20.4x18.5x1.8x
Thu, 19 Oct 2023US$853.4bUS$475.2bUS$44.4b19.4x19.2x1.8x
Sat, 16 Sep 2023US$886.2bUS$475.0bUS$44.4b20.3x20x1.9x
Mon, 14 Aug 2023US$935.7bUS$473.4bUS$43.5b20.6x21.5x2x
Wed, 12 Jul 2023US$929.6bUS$459.8bUS$40.2b20.9x23.1x2x
Fri, 09 Jun 2023US$858.6bUS$460.9bUS$40.5b20x21.2x1.9x
Sun, 07 May 2023US$821.9bUS$456.6bUS$40.0b18.9x20.5x1.8x
Tue, 04 Apr 2023US$847.7bUS$442.8bUS$37.4b22x22.7x1.9x
Thu, 02 Mar 2023US$864.7bUS$442.6bUS$38.2b22.9x22.7x2x
Price to Earnings Ratio

22.7x


Total Market Cap: US$864.7bTotal Earnings: US$38.2bTotal Revenue: US$442.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Machinery Industry Price to Earnings3Y Average 22.4x202420252026
Current Industry PE
  • Investors are optimistic on the American Machinery industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 35.6x which is higher than its 3-year average PE of 22.4x.
  • The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Machinery industry have grown 3.8% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market1.04%
Industrials1.66%
Machinery0.64%
Agricultural Machinery8.10%
Industrial Machinery-0.24%
Construction Machinery and Vehicles-0.85%
Industry PE
  • Investors are most optimistic about the Industrial Machinery industry which is trading above its 3-year average PE ratio of 30.8x.
    • Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings growth of 2.3% per year.
  • Investors are most pessimistic about the Construction Machinery and Vehicles industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 18.8x.
Forecasted Growth
  • Analysts are most optimistic on the Agricultural Machinery industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is better than its past earnings decline of 22% per year.
  • In contrast, the Construction Machinery and Vehicles industry is expected to see its earnings grow by 15% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
DE DeereUS$662.499.9%
+US$16.1b		35.2%PE37.3x
PH Parker-HannifinUS$1.02k2.0%
+US$2.6b		53.3%PE36.5x
WAB Westinghouse Air Brake TechnologiesUS$264.783.4%
+US$1.5b		43.4%PE38.7x
OTIS Otis WorldwideUS$92.673.2%
+US$1.1b		-5.8%PE26x
PCAR PACCARUS$128.461.1%
+US$830.6m		23.0%PE28.4x

Latest News

ESAB
US$128.63
ESAB
7D
-4.6%
1Y
7.1%
LECO
US$286.13
Lincoln Electric Holdings
7D
-2.6%
1Y
38.0%
PCAR
US$128.46
PACCAR
7D
1.1%
1Y
23.0%

PCAR: Easing 2027 Emissions Rules Will Support Higher Margins And Premium Pricing

The analyst price target for PACCAR has been raised from $147.64 to $150.00, reflecting updated assumptions for slightly higher revenue growth, profit margins, and future P/E. This change is in line with a series of recent target increases from firms such as Morgan Stanley, Citi, Wells Fargo, BofA, and JPMorgan.
DE
US$662.49
Deere
7D
9.9%
1Y
35.2%

DE: Q1 Beat And Construction Strength Will Support Earnings Recovery As Cycle Bottoms

Analysts have raised their implied fair value estimate for Deere from about $527 to about $630, citing stronger than expected Q1 results, an improved margin outlook, and higher long-term earnings power. This view is reflected in a slightly lower discount rate, steadier revenue expectations, and a similar future P/E multiple.
NDSN
US$290.17
Nordson
7D
-2.7%
1Y
34.7%

NDSN: Buybacks And 2026 Guidance Will Support Balanced Return Prospects

Analysts have revised their price target on Nordson to $295.40 from $274.18, reflecting updated views on fair value, discount rate, revenue growth, profit margins, and expected future P/E multiples. What's in the News Nordson issued earnings guidance for the first quarter of fiscal 2026, with sales forecast in the range of $630 million to $670 million and adjusted earnings of $2.25 to $2.45 per diluted share (company guidance).
IR
US$95.60
Ingersoll Rand
7D
-3.0%
1Y
14.2%
PH
US$1,022.23
Parker-Hannifin
7D
2.0%
1Y
53.3%

PH: Updated Guidance And Ongoing Buybacks Will Support A Balanced Outlook

Analysts have lifted their Parker Hannifin fair value estimate from about $963 to roughly $1,018, supported by slightly higher assumptions for revenue growth, profit margin, and future P/E, along with a modestly lower discount rate. What's in the News Parker-Hannifin revised earnings guidance for the fiscal year ending June 30, 2026, with reported sales growth now in a range of 5.5% to 7.5%, including approximately 5% organic growth, acquisitions of about 1%, divestitures of about 1%, and a 1.5% currency tailwind (Key Developments).
CNH
US$13.06
CNH Industrial
7D
2.4%
1Y
0.6%
FELE
US$95.84
Franklin Electric
7D
-12.0%
1Y
-8.1%

FELE: Higher Margins And Rising Dividend Will Support Medium Term Upside

Analysts have modestly lifted their price target on Franklin Electric from $108.00 to $111.75, reflecting updated assumptions for slightly lower revenue growth, higher profit margin expectations, and a small adjustment to the projected future P/E multiple. What's in the News Franklin Electric issued earnings guidance for full year 2026, with expected sales in a range of US$2.17b to US$2.24b, giving investors a reference point for the company’s medium term revenue outlook (Corporate Guidance).
CAT
US$759.74
Caterpillar
7D
-1.9%
1Y
123.4%

CAT: Data Center Power Demand Will Drive Future Multiple Repricing

Caterpillar's analyst price target has been raised from $790 to $850. Analysts cited updated assumptions for faster revenue growth, a slightly lower discount rate, and a higher future P/E multiple, partly offset by more moderate profit margin expectations.
FTV
US$58.28
Fortive
7D
2.4%
1Y
-27.2%

FTV: Recent Rating Shift And Buybacks Will Shape Future Return Profile

Our updated Fortive narrative reflects a higher implied price target of about $62, as analysts factor in steadier revenue growth assumptions, slightly stronger profit margins, a modestly lower discount rate, and a similar forward P/E, consistent with a series of recent price target increases across the Street. Analyst Commentary Recent Street research shows a cluster of higher Fortive price targets, alongside at least one downgrade.
ITW
US$294.98
Illinois Tool Works
7D
-1.5%
1Y
11.6%
CMI
US$593.28
Cummins
7D
-1.3%
1Y
61.7%

CMI: Rising Data Center Demand Will Support Earnings Through Upcoming Truck Cycle Trough

The analyst fair value estimate for Cummins has been raised by $50 to $703, as analysts adjust their assumptions around revenue growth, profit margins, and future P/E in light of a recent wave of higher price targets across the Street, with some offset from a downgrade and one lower target. Analyst Commentary Recent research suggests that Cummins is attracting a wave of constructive attention, with several bullish analysts adjusting their price targets higher in quick succession and only limited pushback from more cautious voices.
OTIS
US$92.67
Otis Worldwide
7D
3.2%
1Y
-5.8%

OTIS: Service Strength And Buybacks Will Offset Cautious Post Q4 Sentiment

Narrative Update: Otis Worldwide The consolidated analyst price target for Otis Worldwide has been trimmed by $2, as analysts factor in recent downgrades, reduced targets, and concerns that the post Q4 thesis has weakened and could weigh on near term performance. Analyst Commentary Recent research has turned more cautious on Otis Worldwide, with several firms reassessing their views after Q4 and taking a closer look at both execution risks and near term valuation.
WAB
US$264.78
Westinghouse Air Brake Technologies
7D
3.4%
1Y
43.4%
ITT
US$206.47
ITT
7D
1.7%
1Y
45.5%