Mizuho has named Corteva (NYSE: CTVA) and Stanley Black & Decker (NYSE: SWK) among its top stock picks in the U.S. industrials sector, citing strong operational execution, improving fundamentals, and long-term growth opportunities despite ongoing macroeconomic challenges.
The brokerage believes the industrials sector remains uneven, with some businesses facing pressure from weaker commodity prices while others continue to recover from post-pandemic inventory disruptions. Its preferred companies are those with resilient business models, disciplined management teams, and clear strategic initiatives that can drive shareholder value.
Mizuho rates Corteva as Outperform with a $94 price target. The agricultural company, valued at approximately $56.8 billion, is viewed as better positioned than many peers because its seed business remains relatively resilient even as lower crop prices reduce farmers’ income. Farmers typically prioritize seed purchases over other agricultural inputs, supporting demand during weaker market conditions.
The brokerage also highlighted Corteva’s planned separation of its seed business, Vylor, from its crop protection division, New Corteva. SEC filings are expected soon, followed by investor presentations on September 15, with the transaction targeted for completion in the fourth quarter. Mizuho believes the split could unlock additional value, with Vylor potentially earning a biotech-style valuation over time. Its valuation assumes roughly 17x EBITDA for the seed business and 10.5x EBITDA for crop protection, based on the firm's projected 2027 EBITDA of $4.3 billion.
For Stanley Black & Decker, Mizuho also assigns an Outperform rating with a $110 price target. The company, which has a market capitalization of about $14.6 billion, has made significant progress after navigating tariff-related costs, supply chain disruptions, and softer consumer demand.
The brokerage noted that a revamped leadership team has launched a multi-year restructuring program targeting $2 billion in cost savings, with additional benefits expected through 2026. Stanley Black & Decker also benefited from the recent U.S. Supreme Court ruling that struck down broad reciprocal tariffs, reducing a major cost burden after the company absorbed more than $600 million in tariff expenses. Mizuho added that the sale of its CAM business strengthened the balance sheet by lowering net leverage to roughly 2x, while its valuation remains below the industry average, offering further upside potential.
