Zacks Industry Outlook 3M, Griffon, GPGI and Public Policy

For Immediate ReleaseChicago, IL – June 26, 2026 – Today, Zacks Equity Research 3M Company MMM, Griffon Corp. GFF, GPGI, Inc. GPGI and Public Policy Holding Company, Inc. PPHCIndustry: Diversified OperationsLink: https://www.zacks.com/commentary/2942892/4-diversified-operations-stocks-to-consider-on-promising-industry-trendsThe Zacks Diversified Operations industry is benefiting from solid momentum in the manufacturing sector and strength across the aerospace and defense industries. Growth in commercial aviation and steady demand in the home and building product markets are key catalysts for the industry’s growth.However, supply-chain issues have been weighing on the performance of some industry players. 3M Company, Griffon Corp., GPGI, Inc. and Public Policy Holding Company, Inc. are a few industry participants that are likely to capitalize on the opportunities.About the IndustryThe Zacks Diversified Operations industry includes companies that operate in various end markets, including oil & gas, industrial, electronics, power, aviation, technology, finance, healthcare, chemical, non-residential construction and transportation. Such companies manufacture and provide equipment and solutions, including bioprocessing products, molecular testing-related products, gas and steam turbines, generators, commercial jet engines and engineered fluid-process equipment.Industry players also provide related services to a large customer base. A few companies offer services in the agriculture, marine and telecommunications markets and are engaged in providing environmental and safety solutions. The diversified market operators have a vast global presence, with exposure in the United States, Japan, India, China, Canada and other countries.Major Trends Shaping the Future of the Diversified Operations IndustryStrength in the Manufacturing Sector:The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the fifth consecutive month in May. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 54% in May. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 56.8% in the same month.Robust Aerospace and Defense Markets:The prospects of multi-sector companies primarily depend on the operating conditions of several end markets. Some factors that currently favor the industry are healthy demand from the aerospace, defense and governmental sectors and infrastructure development. Industry players with exposure to the commercial aviation markets are poised to gain from healthy growth in air transport flight hours. Also, solid demand for several products and equipment in the consumer and professional, and home and building product markets bodes well for some industry participants.Investments in Innovation & Technological Advancements:The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.Supply-Chain Disruptions:Supply-chain disruptions, especially related to the availability of electrical and electronic components, have been concerning for the industry participants of late. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the seventh straight month in June. Supply-chain issues, if not controlled, might hinder the growth of diversified operation companies, going forward.Zacks Industry Rank Suggests Strong ProspectsThe Zacks Diversified Operations industry, housed within the broader Zacks Conglomerates sector, currently carries a Zacks Industry Rank #100. This rank places it in the top 40% of 247 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.Given the bullish near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. However, it is worth taking a look at the industry’s shareholder returns and current valuation first.Industry Lags the S&P 500In the past year, the Zacks Diversified Operations industry has underperformed the S&P 500 composite. The industry has declined 5.8% against the S&P 500 Index’s 23.3% rise.Industry's Current ValuationOn the basis of forward P/E (F12M), which is a commonly used multiple for valuing diversified operations stocks, the industry is currently trading at 15.49X compared with the S&P 500’s 21.02X.Over the past five years, the industry has traded as high as 17.56X and as low as 10.38X, with a median of 14.26X.4 Diversified Operations Stocks Leading the PackGPGI: Based in Saint Somerset, NJ, GPGI provides metal payment cards, secure authentication solutions and engineered injection molding equipment and aftermarket services for the food, packaging, medical and consumer products markets worldwide. The company is benefiting from its diversified portfolio, with market-leading business CompoSecure driving growth. Solid momentum in the Husky business also bodes well.Though shares of this Zacks Rank #1 (Strong Buy) company have lost 0.6% in the past year, they rose 13% in the past month. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing two quarters, the average surprise being 25.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.3M: Based in St. Paul, MN, 3M operates as a diversified technology firm. It has manufacturing operations across the globe and serves a diversified customer base throughout the world. The company stands to gain from strong momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Solid momentum in the semiconductor, data center, aerospace and defense, commercial branding and automotive markets is aiding its Transportation and Electronics segment.Shares of this Zacks Rank #2 (Buy) company have soared 10.1% in the past year. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.6%.Griffon:Based in New York, Griffon engages in the manufacture and sale of a broad range of consumer, professional, home and building products, including garage doors, shutters, home organization products and outdoor living products. GFF is benefiting from resilient repair and remodeling demand across its Clopay operations. Increase in demand for rolling steel door and grille products in commercial construction markets also remains supportive.The Zacks Rank #2 company’s shares surged 31.9% in the past year. GFF has delivered better-than-expected results in three of the trailing four quarters while missing the mark in one, the average surprise being 3.3%.Public Policy Holding: Situated in Washington, Public Policy Holding is engaged in providing government relations, public affairs, corporate communications and compliance consulting services to its clients. PPHC is gaining from strength in its Government Relations Consulting segment, driven by stable pricing of retainer contracts both at the U.S. Federal and State levels. Solid momentum in the Corporate Communications & Public Affairs Consulting segment has also been proving beneficial.This Zacks Rank #2 company’s 2026 earnings estimate remained steady in the past 60 days. The company delivered better-than-expected results in each of the trailing two quarters, the average surprise being 2.1%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. 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