Industrials Sector: Value Investing Analysis

About the Industrials Sector

Companies that manufacture machinery, hand-held tools, and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportation services. Companies in this sector include 3M, Boeing, and Siemens.

The Industrials sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.

Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.

Industrials Stocks: Value Analysis

Below are the stocks we track in the Industrials sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.

Discounted stocks in the index
Company Current Price Current Price Discount
10 years
Casella Waste Systems
(CWST)
$82.24 none
HealthEquity
(HQY)
$88.25 none
CIRCOR International
(CIR)
$34.31 none
TTEC Holdings
(TTEC)
$1.23 none
Geospatial Corporation
(GSPH)
$0.00 none
Sea Limited
(SE)
$99.55 none
Clean Harbors
(CLH)
$313.04 none
ArcBest Corporation
(ARCB)
$125.16 none
Lyft
(LYFT)
$14.87 none
International Seaways
(INSW)
$105.64 none
TAT Technologies Ltd.
(TATT)
$38.01 none
Highway Holdings Limited
(HIHO)
$0.90 45.5%
GATX Corporation
(GATX)
$177.89 none
Scorpio Tankers
(STNG)
$87.85 none
QuinStreet
(QNST)
$17.55 none
Grupo Aeroportuario del Pacífico, S.A.B. de C.V.
(PAC)
$202.78 11.9%
Willdan Group
(WLDN)
$79.99 none
Transcend Services
(TRCR)
$0.00 none
Eaton Corporation plc
(ETN)
$424.77 none
Ardmore Shipping Corporation
(ASC)
$19.05 none

(ZOLT)
$0.00 none
Eagle Bulk Shipping
(EGLE)
$32.00 none
Fidelity National Information Services
(FIS)
$36.43 51.0%
Mastech Digital
(MHH)
$7.43 none
Teekay Corporation
(TK)
$14.67 none
Acme United Corporation
(ACU)
$61.94 none
Northrop Grumman Corporation
(NOC)
$527.39 none
Booz Allen Hamilton Holding Corporation
(BAH)
$77.07 none
Deere & Company
(DE)
$683.99 none
Danaos Corporation
(DAC)
$161.19 none
CSX Corporation
(CSX)
$47.10 none
Golden Ocean Group Limited
(GOGL)
$24.43 none
SFL Corporation Ltd.
(SFL)
$13.63 none
Canadian National Railway Company
(CNI)
$118.95 none
root9B Holdings
(RTNB)
$0.00 none
Thermon Group Holdings
(THR)
$61.14 none
PayPal Holdings
(PYPL)
$52.41 none
Mueller Water Products
(MWA)
$21.91 none
Helios and Matheson Analytics
(HMNY)
$0.00 none
Marten Transport, Ltd.
(MRTN)
$13.22 none
Textron
(TXT)
$79.69 none
Malibu Boats
(MBUU)
$23.63 none
United Rentals
(URI)
$1013.91 none
Shift4 Payments
(FOUR)
$38.98 none
Silvercorp Metals
(SVM)
$11.83 none
ASML Holding N.V.
(ASML)
$1679.92 none
Valmont Industries
(VMI)
$474.64 none
AMN Healthcare Services
(AMN)
$34.26 none
Global Payments
(GPN)
$85.29 none
Akamai Technologies
(AKAM)
$104.52 none
S&P Global
(SPGI)
$404.47 none
AECOM
(ACM)
$61.99 none
FuelCell Energy
(FCEL)
$18.11 none
Matson
(MATX)
$232.92 none
Tetra Tech
(TTEK)
$35.69 none
Visa
(V)
$369.95 none
Sturm, Ruger & Company
(RGR)
$41.52 none
The Boeing Company
(BA)
$201.15 none
Chicago Rivet & Machine Co.
(CVR)
$10.25 43.4%
Altisource Portfolio Solutions S.A.
(ASPS)
$5.68 85.8%
Quanta Services
(PWR)
$636.71 none
The RMR Group
(RMR)
$18.73 none
BG Staffing
(BGSF)
$4.95 none
J.B. Hunt Transport Services
(JBHT)
$236.17 none
L3Harris Technologies
(LHX)
$247.29 none
Tennant Company
(TNC)
$67.40 none
CRA International
(CRAI)
$165.38 none
LiqTech International
(LIQT)
$0.70 none

(HHGP)
$0.00 none
Veeco Instruments
(VECO)
$42.72 none
Fortress Transportation and Infrastructure Investors LLC
(FTAI)
$190.74 none
Diana Shipping
(DSX)
$2.97 24.2%
Graco
(GGG)
$76.26 none
CoStar Group
(CSGP)
$29.09 60.2%
Ducommun Incorporated
(DCO)
$166.25 none
Costamare
(CMRE)
$15.09 none
Prism Technologies Group
(PRZM)
$0.00 none
Xylem
(XYL)
$107.24 none
FLEETCOR Technologies
(FLT)
$0.00 none
C.H. Robinson Worldwide
(CHRW)
$152.99 none
Qiwi plc
(QIWI)
$5.67 none
SPX Corporation
(SPXC)
$181.19 none
Cross Country Healthcare
(CCRN)
$13.25 none
XPO Logistics
(XPO)
$174.34 none
Standex International Corporation
(SXI)
$262.51 none
Gates Industrial Corporation plc
(GTES)
$25.61 none
The Timken Company
(TKR)
$117.14 none
Kornit Digital Ltd.
(KRNT)
$15.38 none
The ExOne Company
(XONE)
$49.16 none
Etsy
(ETSY)
$72.60 none
Caterpillar
(CAT)
$808.99 none
Ryanair Holdings plc
(RYAAY)
$53.51 none
Booking Holdings
(BKNG)
$167.90 none
Axcelis Technologies
(ACLS)
$109.32 none
Universal Logistics Holdings
(ULH)
$17.70 none
MercadoLibre
(MELI)
$1787.39 none
Acuity Brands
(AYI)
$302.96 none
Expedia Group
(EXPE)
$279.35 none
Werner Enterprises
(WERN)
$35.67 none
FTI Consulting
(FCN)
$141.18 none
Columbus McKinnon Corporation
(CMCO)
$15.76 none
Chart Industries
(GTLS)
$209.90 none
Pinduoduo
(PDD)
$78.90 none
The Manitowoc Company
(MTW)
$22.35 none
Johnson Controls International plc
(JCI)
$143.28 none
Nordic American Tankers Limited
(NAT)
$8.25 none
Northern Technologies International Corporation
(NTIC)
$7.55 none
Dover Corporation
(DOV)
$187.42 none
Lockheed Martin Corporation
(LMT)
$533.38 none
Schneider National
(SNDR)
$32.61 none
Makita Corporation
(MKTAY)
$34.52 none
Triton International Limited
(TRTN)
$0.00 none
Servotronics
(SVT)
$0.00 none
MasterCraft Boat Holdings
(MCFT)
$24.24 none
Radware Ltd.
(RDWR)
$28.42 none
Lincoln Electric Holdings
(LECO)
$261.31 none
Seanergy Maritime Holdings Corp.
(SHIP)
$17.49 none
Elbit Systems Ltd.
(ESLT)
$808.65 none
ProShares Ultra Bloomberg Crude Oil
(UCO)
$40.42 none
Norfolk Southern Corporation
(NSC)
$335.74 none
Astronics Corporation
(ATRO)
$71.12 none
Flowserve Corporation
(FLS)
$69.94 none
American Airlines Group
(AAL)
$15.27 none
Twin Disc, Incorporated
(TWIN)
$22.81 none
Art's-Way Manufacturing Co.
(ARTW)
$2.16 none
The Greenbrier Companies
(GBX)
$50.72 none
Snap-on Incorporated
(SNA)
$414.83 none
Schnitzer Steel Industries
(SCHN)
$0.00 none
Waste Management
(WM)
$236.60 none
Expeditors International of Washington
(EXPD)
$170.13 none
eBay
(EBAY)
$115.30 none
Pitney Bowes
(PBI)
$17.66 none
Robert Half International
(RHI)
$40.13 none
Union Pacific Corporation
(UNP)
$292.19 none
United Parcel Service
(UPS)
$104.56 none
AZZ
(AZZ)
$149.18 none
CompX International
(CIX)
$28.10 none
Mastercard Incorporated
(MA)
$563.32 none
Paychex
(PAYX)
$122.13 none
Moody's Corporation
(MCO)
$483.24 none
FedEx Corporation
(FDX)
$308.61 none
ABM Industries Incorporated
(ABM)
$49.36 none
Republic Services
(RSG)
$218.91 none
Stanley Black & Decker
(SWK)
$93.05 none
General Dynamics Corporation
(GD)
$380.96 none
Chase Corporation
(CCF)
$0.00 none
The Western Union Company
(WU)
$8.09 59.2%
Air Transport Services Group
(ATSG)
$0.00 none
Southwest Airlines Co.
(LUV)
$44.38 none
CBIZ
(CBZ)
$54.80 none
AeroVironment
(AVAV)
$159.18 none
The Brink's Company
(BCO)
$115.61 none
Barrett Business Services
(BBSI)
$40.98 37.4%
AAON
(AAON)
$84.87 none
Cummins
(CMI)
$606.00 none
Genuine Parts Company
(GPC)
$129.98 none

How to Invest in Industrials Stocks

Sector-Specific Considerations

When evaluating Industrials companies, consider these key factors:

  • Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
  • Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
  • Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
  • Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
  • Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.

✓ Sector Analysis Checklist

  • Compare P/E ratios within the sector
  • Look for strong free cash flow generation
  • Assess debt levels relative to peers
  • Evaluate dividend sustainability
  • Check management track record
  • Calculate margin of safety

Common Sector Pitfalls

  • Chasing last year's hot sector
  • Ignoring sector-wide headwinds
  • Overpaying for market leaders
  • Neglecting competitive threats
  • Failing to diversify across sectors
  • Not understanding the business model