Rexnord's leverage to parts versus capex and its above-average exposure to water, aerospace, and food/beverage should all be helpful at this point in the industrial cycle.
Rexnord continues to identify incremental margin opportunities, having already done a good job of offsetting tariffs and making the portfolio less project-dependent.
Rexnord shares are a borderline buy call and worth watching if the sector sells off in this upcoming earnings reporting cycle.
I liked Rexnord (RXN) a year ago, or at least I thought the company’s valuation was curiously low on a relative basis given the company’s end-market exposures and cost-reduction efforts. Since then, Rexnord