Here's Why You Should Consider Investing in RBC Bearings Stock Now

RBC Bearings Incorporated RBC stands to benefit from strength across its businesses, synergies from acquisitions and shareholder-friendly policies. The company remains focused on investing in growth opportunities and strengthening its long-term market position.

RBC, which has a market capitalization of $12.6 billion, currently sports a Zacks Rank #1 (Strong Buy). Let’s delve into the factors that have been aiding the firm for a while now.

End-Market Strength: RBC Bearings is benefiting from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the Aerospace/Defense segment (revenues up 10.4% year over year in first-quarter fiscal 2026). The robust backlog level ($1.02 billion, exiting first-quarter fiscal 2026), along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to be beneficial for the segment.

The company is also witnessing strength in the Industrial segment (revenues up 5.5% year over year in first-quarter fiscal 2026). Stable demand for its highly engineered bearings and precision components in metals and mining, warehousing and logistics, forest products and food and beverage markets bodes well.

For the second quarter of fiscal 2026 (ending September 2025), RBC Bearings anticipates net sales to be in the range of $445-$455 million, suggesting a year-over-year increase of 11.8-14.4%.

Acquisition Benefits: The company has been strengthening its business through acquisitions. In July 2025, it acquired VACCO Industries for about $275 million in cash. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, will enable RBC to expand its customer offerings in the defense, space and commercial markets.

Price Performance of RBC Stock

In the past year, the company’s shares have surged 35.5% compared with the industry’s 8.4% growth.

Shareholder-Friendly Policies: RBC Bearings remains committed to increasing shareholders’ value through dividend payments and share repurchases. In fiscal 2025 (ended March 2025), the company paid preferred stock dividends of $17.2 million and repurchased shares for $9.5 million.

Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 (ending March 2026) earnings has increased 1.6%. Also, the same for fiscal 2027 (ending March 2027) has been revised upward 3.8%.

Other Key Picks

Some other top-ranked companies from the same space are discussed below.

Flowserve Corporation FLS currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 30 days, the Zacks Consensus Estimate for FLS’ 2025 earnings has increased 3.7%.

Nordson Corporation NDSN presently carries a Zacks Rank #2 (Buy). NDSN delivered a trailing four-quarter average earnings surprise of 3.2%.

In the past 30 days, the consensus estimate for NDSN’s fiscal 2025 earnings has been stable.

Graham Corporation GHM currently carries a Zacks Rank of 2. GHM delivered a trailing four-quarter average earnings surprise of 64%.

In the past 30 days, the consensus estimate for Graham’s fiscal 2025 earnings has increased 15.4%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research