Wolfe Industrial Weekly #956

Research evidence excerpt

Wolfe Industrial Weekly #956

Electrical Equipment & Multi-Industry

Distributors - Market Underweight

Industrial Technology - Market Weight

Multi-Industry - Market Weight

Wolfe Industrial Weekly #956 May 24, 2026

An End to Dire Straits? Exhibit 1 - EE/MI

Performance for Week

Ended May 22The Wolfe Byte

HON 6.9%

FPS 6.4%

VNT 5.7%If US/Iran ink a deal that leads to a re-opening of the Strait then we would expect NDSN 5.5%

MMM 4.3%

SPXC 3.4%

PNR 2.9%

EMR 2.5%money to rotate into cyclicals and rate-sensitive stocks, with perhaps a little excess OTIS 2.5%

VLTO 2.3%

XYL 2.0%

1.8%air coming out of AI stocks. This week's leader takes a pulse check on the US Non- RRXITW 1.8%

SWK 1.8%

HAYW 1.7%

0.9%Res markets. S&P 500IR 0.8%

ROK 0.8%

EE/MI Median 0.7%

FTV 0.7%

PH 0.5%

GTES 0.3%

ITT 0.2%

GGG -0.1%

DOV -0.4%

GEV -1.0%Our EE/MI coverage ended the week up +0.7%, slightly underperforming the HUBB -1.0%

ZBRA -1.5%

AME -1.5%

ETN -2.0%

MAIR -2.3%+0.9% gain for the S&P 500, and Distributors at +1.1%. Wolfe's GTIC conference CARR -2.4%

NVT -2.6%

LII -3.1%

-3.3%brought several key highlights: HON closed up +6.9% following a generally positive JCITT -3.3%

VRT -11.7%

-15% -10% -5% 0% 5% 10%2Q update (lower stranded costs & ME headwinds, strong orders). We also saw

notable outperformance (>4%) from VNT (upsized buyback program), NDSN (beat Exhibit 2 - US Cap Goods

Subsector Performanceand raise), and 3M (2Q sales confidence). Meanwhile, VRT's investor event was a for Week Ended May 22

sell-on arrival catalyst (-11.7%) and our HVAC complex generally declined on higher Aero 3.4%

Diversified Manufacturing 2.7%rates and nuanced conference commentary from CARR. For the Distributors: MSM,

FAST, and WCC gained 1-2%, while WSO (-6.9%) significantly underperformed the TransportsFlow 1.9%2.3%