3 Industrial Stocks Ready to Benefit From Fed Cuts and Spending

Key Points

• Lower interest rates and infrastructure spending could spark a rebound in the U.S. industrial sector, creating opportunities for Chemours, Dow, and Nucor.
• Chemours benefits from auto and housing tailwinds, Dow stands to gain from restocking cycles and federal infrastructure projects, and Nucor is well-positioned for rising steel demand.
• Despite recent volatility, analysts see double-digit upside potential across these three industrial stocks, supported by both price action and fundamentals.

Price action is one of the most important metrics to watch out for when deciding whether a potential investment setup is bullish or bearish. However, despite its importance, price action is only half the picture because relying solely on it without linking to fundamental reasons risks capital blindly.

The U.S. industrial sector is under pressure from shifting consumer and business spending, inflation expectations, and new trade tariffs on a range of products and materials. Even so, not all uncertainty translates to risk. With the right positioning, investors can find opportunity.

Three names worth consideration are Chemours Co. NYSE: CC, Dow Inc. NYSE: DOW, and Nucor Corp. NYSE: NUE. All three have supportive price action, but now it’s time to connect that momentum back to fundamentals.

Chemours Stock: Direct Consumer Exposure

Chemours may not seem like a consumer play, but its chemicals are widely used in automotive and housing paints and coatings. Both sectors could benefit directly from the Federal Reserve’s recent interest rate cuts.

Lower financing rates make cars more affordable, boosting demand and, in turn, production—each vehicle requiring paint and coating. Housing tells a similar story. Mortgage applications and building permits are at cyclical lows, but both should rebound as lower rates filter through the economy, creating upside for Chemours’ products.

Analysts are taking notice. In September 2025, Truist Financial’s Peter Osterland set a $21 per-share price target, well above the consensus of $17.63, implying 36% upside even after a 25% rally last quarter.

A Restocking Cycle Set for Dow Stock

Lower interest rates are also stimulating new business activity. Following years of high interest rates and a strategic slowdown to control inflation, this shift could lead to the opposite effect. As business activity rises, there is a greater need to restock inventories of consumer goods, including perishables and staple items.

Dow is likely to thrive in this area, as its production of polyurethanes and coatings used in packaging will be essential during this restocking phase. It is also a key supplier of materials for industrial construction, an area likely to see momentum under President Trump’s “One Big Beautiful Bill,” which is channeling billions into infrastructure projects.

Although the stock has dropped to only 41% of its 52-week high, indicating a deep bear market, Wall Street analysts still maintain a net bullish stance on the company. Investors note that the current consensus price target is $30 per share, which is 30.2% higher than the current trading price. This presents an opportunity for investors to capitalize on the gap, supported by solid fundamental analysis.

Multiple Tailwinds for Nucor’s Next Rally

Infrastructure spending isn’t only about chemicals and coatings—it also requires steel. As the largest U.S. steelmaker, Nucor is in a prime spot to benefit from both residential and industrial construction rebounds.

Lower interest rates do more than just support demand rebound, pricing power, and margins; they also enable Nucor to adapt and leverage this scenario by reducing expansion costs. As a major player in steelmaking, the company requires significant initial capital investment, which is typical in such a capital-intensive industry.

Nucor is expected to see costs decrease while its prices rise due to soaring demand, creating a favorable outlook for EPS growth. Investors are already witnessing signs of this strength, as Nucor reported $2.60 in EPS for the recent quarter, surpassing the MarketBeat consensus of $2.54. With a year-to-date increase of 16%, the stock's potential could be much higher once Federal Reserve rate cuts begin to impact the broader economy before 2025 ends.