Three Stocks Poised to Benefit Under Trump’s Manufacturing Agenda

With the second Trump administration prioritizing domestic manufacturing, deregulation, and energy independence, investors are turning their attention to industrial and defense stocks that could benefit from these policies. The rally in industrials has already gained momentum, and as infrastructure projects, energy expansion, and military spending ramp up, several key companies stand to profit.

While the broader market remains volatile, smart investors are looking for opportunities in sectors that align with Trump’s policy agenda. Below, we highlight three stocks that are attracting significant interest and could be positioned for further upside.

Eaton (NYSE: ETN)

Eaton is emerging as a strong play in the ongoing expansion of AI infrastructure and data center growth. The company specializes in power management systems and electrical components—critical pieces in the construction and operation of high-powered AI data centers.

With demand for electricity soaring due to AI, Eaton’s equipment is becoming increasingly essential. The company provides solutions that help distribute and regulate power efficiently, making it a direct beneficiary of the data center boom. As AI-driven investments accelerate, Eaton’s role in power infrastructure will only become more important.

Aadil Zaman of The Wall Street Alliance Group sees Eaton as a stock that will benefit from the Trump administration’s focus on manufacturing and energy infrastructure. “With the demand for electricity going up, the demand for their equipment will go up,” Zaman recently stated. Eaton’s strong position in the industrial supply chain and its growing exposure to AI-powered data centers make it an appealing investment in today’s environment.

Flowserve (NYSE: FLS)

Flowserve is a standout in the energy sector as Trump’s push for increased fossil fuel production takes center stage. The company manufactures pumps, valves, and components used in the oil, gas, and chemical industries—critical infrastructure for expanding fossil fuel output.

Drew Pettit of Citi sees Flowserve as a prime way to capitalize on the administration’s energy policies. “With Trump 2.0 looking a lot like Trump 1.0—with deregulation and a focus on fossil fuels—it only increases the earnings visibility for this name,” Pettit said on Worldwide Exchange.

Flowserve is well positioned for double-digit earnings growth through 2025 and into 2026, thanks to its role in enabling expanded fossil fuel production. As the administration moves quickly to roll back environmental regulations and boost domestic energy output, companies that provide the infrastructure for oil and gas expansion—like Flowserve—stand to gain significantly.

SPDR S&P Aerospace & Defense ETF (NYSEARCA: XAR)

Aerospace and defense stocks have historically outperformed under Trump’s leadership, and this time looks no different. Trump has reiterated his stance that U.S. allies should increase their military spending while prioritizing U.S.-made defense equipment. That shift creates an attractive opportunity for companies in the defense sector, particularly those focused on airpower, aerospace components, and under-the-radar defense contractors.

While XAR isn’t a pure industrials play, it’s still tied to manufacturing, aerospace, and military production—sectors that stand to benefit from rising defense budgets and increased government contracts. The SPDR S&P Aerospace & Defense ETF provides broad exposure to this industry, including companies involved in aircraft production, missile systems, and military technology. As Alpine Macro’s Dan Alamariu noted, Trump’s policies should be a tailwind for defense stocks. The Trump trade saw renewed strength after his election, and with increased military funding and geopolitical tensions, demand for U.S. defense contracts is expected to rise.

Beyond the immediate boost from increased military spending, companies in XAR’s portfolio are positioned to benefit from long-term government contracts, rising international defense budgets, and advancements in military technology. For investors looking to gain exposure to defense without betting on a single company, XAR offers a diversified approach with strong potential upside.

Industrials, energy, and defense stocks are in focus as Trump’s economic agenda begins to take shape. With manufacturing, infrastructure, and military spending expected to rise, companies like Eaton, Flowserve, and the aerospace and defense sector could see sustained momentum.

For investors looking to align their portfolios with policy-driven opportunities, these three picks provide exposure to key industries set to benefit from Trump’s second term.



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