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
Ardmore Shipping Corporation
(ASC)
$18.07 none
XPO Logistics
(XPO)
$210.99 none
International Seaways
(INSW)
$98.36 none
Ryanair Holdings plc
(RYAAY)
$57.34 none
Akamai Technologies
(AKAM)
$122.97 none
Sturm, Ruger & Company
(RGR)
$37.44 none
Danaos Corporation
(DAC)
$146.28 none
Diana Shipping
(DSX)
$2.66 32.1%
Prism Technologies Group
(PRZM)
$0.00 none
Golden Ocean Group Limited
(GOGL)
$24.06 none
Axcelis Technologies
(ACLS)
$144.11 none
Caterpillar
(CAT)
$881.65 none
TAT Technologies Ltd.
(TATT)
$40.63 none
Etsy
(ETSY)
$78.41 none
Valmont Industries
(VMI)
$506.79 none
CoStar Group
(CSGP)
$31.35 57.1%
Acuity Brands
(AYI)
$360.40 none
Dover Corporation
(DOV)
$206.47 none
Grupo Aeroportuario del Pacífico, S.A.B. de C.V.
(PAC)
$205.69 10.7%
Teekay Corporation
(TK)
$12.85 none
Global Payments
(GPN)
$90.38 none
Canadian National Railway Company
(CNI)
$126.59 none
Deere & Company
(DE)
$599.92 none
Cross Country Healthcare
(CCRN)
$13.25 none
AMN Healthcare Services
(AMN)
$34.54 none
Gates Industrial Corporation plc
(GTES)
$28.14 none
Kornit Digital Ltd.
(KRNT)
$17.70 none
Sea Limited
(SE)
$119.45 none
Werner Enterprises
(WERN)
$39.11 none
Scorpio Tankers
(STNG)
$80.33 none
Textron
(TXT)
$87.65 none
Nordic American Tankers Limited
(NAT)
$6.82 none
LiqTech International
(LIQT)
$0.56 none
The Boeing Company
(BA)
$225.95 none
Veeco Instruments
(VECO)
$54.40 none
Matson
(MATX)
$219.95 none
Pinduoduo
(PDD)
$86.94 none
Northrop Grumman Corporation
(NOC)
$570.20 none
QuinStreet
(QNST)
$20.18 none
Lockheed Martin Corporation
(LMT)
$593.74 none
Eaton Corporation plc
(ETN)
$455.40 none
Booking Holdings
(BKNG)
$204.76 none
FuelCell Energy
(FCEL)
$22.36 none
The Timken Company
(TKR)
$133.93 none
FLEETCOR Technologies
(FLT)
$0.00 none
Columbus McKinnon Corporation
(CMCO)
$19.08 none
Highway Holdings Limited
(HIHO)
$1.03 37.6%
Geospatial Corporation
(GSPH)
$0.00 none
Universal Logistics Holdings
(ULH)
$19.55 none
Helios and Matheson Analytics
(HMNY)
$0.00 none
Malibu Boats
(MBUU)
$29.41 none
Mastech Digital
(MHH)
$7.80 none
Mueller Water Products
(MWA)
$25.18 none
Thermon Group Holdings
(THR)
$61.14 none
SPX Corporation
(SPXC)
$217.63 none
The RMR Group
(RMR)
$20.38 none
Marten Transport, Ltd.
(MRTN)
$15.27 none
Ducommun Incorporated
(DCO)
$205.23 none
Fidelity National Information Services
(FIS)
$41.17 44.6%
Costamare
(CMRE)
$15.02 none
Lyft
(LYFT)
$17.22 none
J.B. Hunt Transport Services
(JBHT)
$283.37 none
CSX Corporation
(CSX)
$50.58 none
L3Harris Technologies
(LHX)
$278.38 none
Standex International Corporation
(SXI)
$326.97 none
Clean Harbors
(CLH)
$326.05 none
Shift4 Payments
(FOUR)
$44.35 none
GATX Corporation
(GATX)
$180.64 none
Fortress Transportation and Infrastructure Investors LLC
(FTAI)
$227.43 none
Johnson Controls International plc
(JCI)
$153.92 none
BG Staffing
(BGSF)
$5.57 none
Xylem
(XYL)
$117.47 none
Silvercorp Metals
(SVM)
$11.92 none
Schneider National
(SNDR)
$36.41 none
HealthEquity
(HQY)
$102.33 none
The Manitowoc Company
(MTW)
$20.19 none
C.H. Robinson Worldwide
(CHRW)
$144.78 none
Chicago Rivet & Machine Co.
(CVR)
$10.18 43.8%
Qiwi plc
(QIWI)
$5.67 none
CRA International
(CRAI)
$164.21 none

(HHGP)
$0.00 none
Expedia Group
(EXPE)
$318.50 none
Transcend Services
(TRCR)
$0.00 none
Tetra Tech
(TTEK)
$35.82 none
PayPal Holdings
(PYPL)
$60.47 none
Visa
(V)
$358.84 none
Booz Allen Hamilton Holding Corporation
(BAH)
$74.97 none
Graco
(GGG)
$81.55 none
TTEC Holdings
(TTEC)
$1.45 none
The ExOne Company
(XONE)
$49.34 none
root9B Holdings
(RTNB)
$0.00 none
Willdan Group
(WLDN)
$83.47 none
MercadoLibre
(MELI)
$1787.57 none
United Rentals
(URI)
$1164.82 none
Tennant Company
(TNC)
$67.57 none
Northern Technologies International Corporation
(NTIC)
$8.05 none
S&P Global
(SPGI)
$410.53 none
SFL Corporation Ltd.
(SFL)
$12.48 none
Acme United Corporation
(ACU)
$61.91 none

(ZOLT)
$0.00 none
Chart Industries
(GTLS)
$209.90 none
Casella Waste Systems
(CWST)
$89.31 none
ArcBest Corporation
(ARCB)
$145.87 none
Altisource Portfolio Solutions S.A.
(ASPS)
$5.42 86.5%
ASML Holding N.V.
(ASML)
$1883.12 none
Quanta Services
(PWR)
$722.31 none
FTI Consulting
(FCN)
$149.82 none
Eagle Bulk Shipping
(EGLE)
$32.62 none
Makita Corporation
(MKTAY)
$33.42 none
Triton International Limited
(TRTN)
$0.00 none
Servotronics
(SVT)
$0.00 none
MasterCraft Boat Holdings
(MCFT)
$24.98 none
Radware Ltd.
(RDWR)
$29.34 none
AECOM
(ACM)
$72.39 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