Reliance Worldwide Stock And 2 Industrial Picks For A Stronger US Dollar

With the Federal Reserve sending mixed signals on interest rates and the US dollar showing signs of strength, many investors are reassessing which stocks could be helped or hurt as borrowing costs stay elevated. Higher-for-longer US rates can pressure some growth stories, yet they may also support companies with steadier cash flows and established dividend records. This article looks at how the latest Fed commentary and dollar moves could affect a handful of large caps, and highlights 3 stocks from our US Dollar Strength Beneficiaries screener that appear positioned to benefit from this backdrop.

Reliance Worldwide (ASX:RWC)

Overview: Reliance Worldwide is a global plumbing and heating products company that designs and manufactures water flow, control, and leak management solutions, selling items like fittings, valves, pipes, and installation systems under brands such as SharkBite and John Guest into retail, wholesale, and OEM channels across North America, Europe, Asia Pacific, and other markets.

Operations: Reliance Worldwide generates most of its revenue from the Americas at about US$827 million, with additional contributions from EMEA at about US$262 million and Asia Pacific at about US$271 million, partly offset by intersegment eliminations of about US$77 million.

Market Cap: A$2.79b

Reliance Worldwide provides exposure to a strong US dollar through a plumbing supplier that already earns the bulk of its revenue in the Americas, while still being listed in Australia. Forecast earnings growth of about 22% per year, a share price sitting well below some fair value estimates, and efficiency projects such as manufacturing optimisation and lower brass usage present a picture of a company aiming to lift margins even as demand in construction related markets remains soft. At the same time, reliance on external borrowing, recent margin pressure and a sizeable one off restructuring charge highlight that execution risk is present. The key consideration is how these factors may balance out for Reliance Worldwide if higher US rates keep the dollar supported.

Reliance Worldwide’s margin story and US dollar exposure could be masking what really matters for long term returns. Walk through the full picture with the DCF valuation analysis for Reliance Worldwide to see what the market might be missing.

Toromont Industries (TSX:TIH)

Overview: Toromont Industries supplies and services heavy equipment, power systems, and industrial refrigeration. It combines its Caterpillar dealership network with its CIMCO refrigeration business to support customers in construction, mining, power generation, food processing, cold storage, and recreational ice rinks across Canada, the United States, and other markets.

Operations: Toromont Industries generates the bulk of its revenue from the Equipment Group at about CA$4.8b, with the CIMCO segment contributing about CA$526.8m.

Market Cap: CA$18.83b

Toromont Industries may appeal to investors in a higher-for-longer US rate environment because its equipment and power systems business is closely linked to data centers, electrification projects, and refrigeration infrastructure that often operate under multi-year contracts. This can provide more visibility than many cyclical stocks. A strong backlog in power systems, AVL’s data center enclosure ramp-up, and recurring service and rental income all point to earnings that are less reliant on one-off equipment sales. A quarterly dividend and experienced board further characterize the company. The trade-off is a rich P/E multiple, reliance on Caterpillar, external borrowing, and the risk that capacity expansions could outpace demand. This makes it important to understand what is already priced in and where expectations could be tested.

Toromont Industries’ long cycle equipment and data center exposure could be only half the story, with the other half hiding in expectations. Test what the market is pricing in with the analyst forecasts for Toromont Industries before sentiment turns.

Skellerup Holdings (NZSE:SKL)

Overview: Skellerup Holdings is a New Zealand based manufacturer of specialised rubber and plastic products for agricultural and industrial uses worldwide, supplying everything from dairy milking consumables and farm footwear to water and wastewater components, roofing and plumbing seals, and engineered parts for automotive, medical and other industrial customers.

Operations: Skellerup Holdings generates about NZ$124.6 million of revenue from its Agri segment and about NZ$248.5 million from its Industrial segment, partly offset by a segment adjustment of about NZ$1.5 million.

Market Cap: NZ$1.3b

Skellerup Holdings stands out in a higher for longer US rate setting because its specialised rubber and water related products serve everyday needs like dairy consumables and wastewater components, which can be less tied to short term economic swings. Earnings growth, high return on equity, and margins that have moved to 16% sit alongside expectations for solid revenue growth and improved FY2026 profit guidance. At the same time, reliance on external borrowing, exposure to raw material costs and trade tariffs, concentration in dairy and water infrastructure, and an unstable dividend record mean this is not a low risk story. The key question for investors is whether Skellerup’s international reach and quality metrics still justify attention as US dollar strength reshapes global cash flows.

Skellerup Holdings’ mix of everyday dairy and water products with higher quality metrics hints at a growth story investors may be overlooking, and the analyst forecasts for Skellerup Holdings reveals a risk reward twist that could change how you see it

The three stocks covered above are just a starting point, and the full US Dollar Strength Beneficiaries screener surfaces 15 more large caps with equally compelling narratives around cash flow resilience, balance sheet quality, and dividend consistency during periods of US dollar strength. Use Simply Wall St to identify, filter, and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas from this group.

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If Skellerup Holdings or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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