Jefferies Turns Bullish on 2 Industrial-Product Stocks, Citing Double-Digit Earnings Growth Potential

This past year has seen strong overall gains in the stock markets – on the order of 16% for the S&P 500, and 14% for the more manufacturing-oriented Dow Jones index – even while the manufacturing sector has faced serious headwinds. Among those headwinds in 2025: rising costs and falling employment, declining manufacturing spending, and uncertainty over trade and tariff policies.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential However, there are some bright spots on the 2026 horizon. The One Big Beautiful Bill included tax provisions that are likely to prove beneficial to industry and manufacturing, while new trade deals and cuts in interest rates are considered supportive of manufacturing. These factors line up to support the view from Jefferies, where analyst Saree Boroditsky has been highlighting industrial-product stocks as potential winners in the year ahead. According to Boroditsky, these companies are positioned to deliver robust growth. We’ve used the TipRanks database to take a closer look at her picks and explore why she finds them so compelling. Middleby Corporation (MIDD) The first company on our list is Middleby Corporation, which lives in the kitchen. The company is known for its global position in manufacturing food service solutions – for commercial kitchens, residential indoor and outdoor appliances, and in industrial baking, packaging, and processing. The company operates in three business segments – food service, residential, and food processing – and has more than 120 brands on the market. Middleby is a $7.5 billion company, and generated $3.88 billion in total revenue last year – a testament to the centrality of food and kitchens in ordinary life. The company’s brands include names such as Burford and Concordia, Marsal and Rangemaster, and have applications in just about every facet of food service, from industrial kitchens to small pizza eateries to home cooking. Middleby employs more than 11,000 people worldwide, at 22 facilities. The company is in the process of changing its focus, and on December 4 announced that it is selling a 51% stake in its Residential Kitchen business to affiliates of the investment platform 26North Partners LP. The deal will allow Middleby to focus on commercial foodservice equipment as a core business. The transaction is valued at $885 million and is expected to be completed during 1H26. In its last reported financial quarter, 3Q25, Middleby had revenues of $982.13 million, up 4% year-over-year and nearly $21 million better than had been forecast. The company’s bottom line in the period, the non-GAAP EPS of $2.37, was up 4 cents per share from the prior-year quarter and came in 30 cents per share above the estimates. For Jefferies analyst Saree Boroditsky, this stock presents a solid way forward, particularly with its turn toward a commercial foodservice focus. She writes, “We are upgrading MIDD to Buy, ahead of a recovery in Commercial Foodservice demand, which we see as the key catalyst for the stock… We see potential for the standalone Commercial Foodservice business to generate double-digit growth from a combination of organic growth / margin expansion and share repurchases (6-8% annually). The CF business has long been the ‘crown jewel’ of MIDD with the highest margin profile of the three segments (27% EBITDA margins vs. 18% consolidated, incl. corp.) despite being weighed down by acquisitions. Based on our operating forecast, the standalone entity could generate >$8.50/share by 2027, with upside to ~$9.80/share if growth aligns with management’s MSD top-line outlook and 40% incrementals.” The new Buy rating here is complemented by a price target of $175, implying a one-year upside potential of 19%. (To watch Boroditsky’s track record, click here) Overall, Middleby’s stock gets a Moderate Buy from the analyst consensus, based on 6 recent recommendations that include 4 Buys and 1 Hold and Sell, each. The stock is priced at $147.28 and its $163.60 average price target suggests that it will gain 11% in the coming year. (See MIDD stock forecast)