SMid Cap Industrials 1Q Recap: Sorting Strength from Strain in Industrials

研报英文原文证据摘录

SMid Cap Industrials 1Q Recap: Sorting Strength from Strain in Industrials

J P M O R G A N North America Equity Research

15 May 2026

SMid Cap Industrials

1Q Recap: Sorting Strength from Strain in Industrials

1Q26 results revealed clear sector divergences within SMid Cap Industrials: the North America Small and Mid Cap

group rose 14.5% YTD, with Automation (+41.7%) and E&C (+2.2%) Industrials

outperforming, Specialty down (-4.0%), and Building Products lagging (–4.9%) Tomohiko Sano AC

amid cost inflation and weak housing. Reflecting these shifts, we upgrade TKR (1-212) 622-1099

from UW to N as execution improved and sector momentum rotated. We tomohiko.sano@jpmorgan.com

downgrade ALLE from OW to N due to margin and construction headwinds, and Brendan Shea, CFA

shift AOS to UW, taking a more cautious sector stance given its China and (1-212) 622-0770

residential exposure. As macro uncertainty continues, we emphasize selectivity brendan.shea@jpmorgan.com

and a focus on resilient end-markets and visible growth drivers. Ethan Coyle

(1-212) 270-0613

• Automation: Riding the Recovery Wave, but Selectivity Is Key: In 1Q26, ethan.coyle@jpmchase.comJ.P. Morgan Securities LLC

the Automation sector saw strong performance across many covered names,

supported by a rebound in the ISM index and a turnaround in industrial activity.

Companies like RRX and CGNX exceeded market expectations in both orders 1Q Review Research

and earnings, with a clear recovery in short-cycle businesses. On the other

Specialty:

hand, ALNT missed profit targets due to rising costs and the impact of a facility

transition, resulting in a significant share price correction. Going forward, the APG, MATX, MIR, MSA, POWL, ROL,

sustainability of order momentum and cost management capabilities will be SCI, VRRM, VMI