GE Vernova (GEV), Parker-Hannifin (PH), and Ametek (AME) are among companies expected to benefit from improving short-cycle industrial demand as order trends strengthen and defense-related exposure provides an additional boost, BofA Securities said Monday in a report.

BofA expects GE Vernova's orders to rise 44% this year, supported by data-center demand and potential upside from the US-Japan trade deal's Ohio power-generation project. Defense revenue accounts for 11% of Parker-Hannifin's sales and 10% at both Ametek and ITT (ITT), the report said.

3M (MMM) and Forgent Power Solutions (FPS) have lagged behind the S&P 500's recent 1% decline, while Vertiv (VRT), GE Vernova, and Fastenal (FAST) have outperformed, the report said.

Companies tied more closely to consumer spending may face greater pressure, while industrial component suppliers are likely to see the strongest improvement in revenue growth as orders picked up in Q4, the report said. Supply-chain disruptions tied to the Middle East conflict may affect Q2 shipment timing, BofA said.

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