Industrials in 2026 track manufacturing momentum, freight demand, capex, and infrastructure spending. Watch whether backlog conversion stays healthy and service-heavy models continue to offset slower short-cycle orders.
Sector AnalysisETF: XLIUpdated Jun 21, 2026
Industrials Sector Stocks
Industrials includes companies that keep the physical economy moving — aerospace, machinery, transportation, logistics, electrical equipment, and capital goods. The sector tracks business spending, freight activity, manufacturing, and infrastructure trends. XLI is the standard benchmark. Screening helps identify which names have durable order books and better execution rather than just the most cyclical exposure.
Research ByVCP Scanner Editorial Team
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| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| Caterpillar Inc. | $985.82 | $458.69B | 52.4 | 43.5% | 0.6% | ||
| GE Aerospace | $357.64 | $373.67B | 43.8 | 45.3% | 0.4% | ||
| RTX Corporation | $185.60 | $249.94B | 37.4 | 10.4% | 1.4% | ||
| The Boeing Company | $222.72 | $175.57B | 89.8 | 289.7% | 0.2% | ||
| Eaton Corporation plc | $421.77 | $163.77B | 40.3 | 21.5% | 1% | ||
| Deere & Company | $589.24 | $159.06B | 31.9 | 20.5% | 1.1% | ||
| Union Pacific Corporation | $256.88 | $152.5B | 21.5 | 40.4% | 2.1% | ||
| Honeywell International Inc. | $229.01 | $145.11B | 31.1 | 27.3% | 2% | ||
| Vertiv Holdings Co | $333.05 | $127.93B | 97.7 | 41.8% | 0.1% | ||
| Parker-Hannifin Corporation | $953.27 | $120.32B | 35.2 | 27.4% | 0.7% | ||
| Lockheed Martin Corporation | $510.95 | $117.75B | 23.8 | 76.9% | 2.6% | ||
| Howmet Aerospace Inc. | $277.66 | $111.09B | 74.8 | 30.4% | 0.2% | ||
| Trane Technologies plc | $483.40 | $106.99B | 37.2 | 36.3% | 0.8% | ||
| Quanta Services, Inc. | $702.25 | $105.38B | 103.3 | 12.6% | 0.1% | ||
| Cummins Inc. | $716.86 | $99.04B | 35.0 | 23% | 1.1% | ||
| General Dynamics Corporation | $350.01 | $94.65B | 22.6 | 17.7% | 1.7% | ||
| United Parcel Service, Inc. | $105.00 | $89.22B | 16.0 | 33.8% | 6% | ||
| Johnson Controls International plc | $144.82 | $88.36B | 55.1 | 21.7% | 1% | ||
| Automatic Data Processing, Inc. | $218.41 | $87.94B | 21.9 | 76% | 2.7% | ||
| Waste Management, Inc. | $214.60 | $86.56B | 32.0 | 29.7% | 1.5% | ||
| CSX Corporation | $45.63 | $84.79B | 29.6 | 22.5% | 1.1% | ||
| Emerson Electric Co. | $150.66 | $84.38B | 37.3 | 9.6% | 1.4% | ||
| 3M Company | $160.60 | $83.76B | 26.8 | 75.2% | 1.4% | ||
| Bloom Energy Corporation | $328.91 | $79.07B | -888.9 | -12.8% | 0% | ||
| FedEx Corporation | $326.20 | $77.83B | 19.4 | 14.7% | 1.7% | ||
| Canadian Pacific Kansas City Ltd. | $86.03 | $77.23B | 27.0 | 8.7% | 0.7% | ||
| Illinois Tool Works Inc. | $264.09 | $76.11B | 25.2 | 93.7% | 2.3% | ||
| TransDigm Group Incorporated | $1328.31 | $75.01B | 41.4 | — | 12.5% | ||
| Northrop Grumman Corporation | $521.50 | $74.07B | 17.9 | 26.2% | 1.7% | ||
| Canadian National Railway Company | $113.43 | $69.35B | 21.2 | 22.1% | 2.2% |
CATCaterpillar Inc.
$985.82Price
Mkt Cap$458.69B
P/E52.4
ROE43.5%
Div Yield0.6%
GEGE Aerospace
$357.64Price
Mkt Cap$373.67B
P/E43.8
ROE45.3%
Div Yield0.4%
RTXRTX Corporation
$185.60Price
Mkt Cap$249.94B
P/E37.4
ROE10.4%
Div Yield1.4%
BAThe Boeing Company
$222.72Price
Mkt Cap$175.57B
P/E89.8
ROE289.7%
Div Yield0.2%
ETNEaton Corporation plc
$421.77Price
Mkt Cap$163.77B
P/E40.3
ROE21.5%
Div Yield1%
DEDeere & Company
$589.24Price
Mkt Cap$159.06B
P/E31.9
ROE20.5%
Div Yield1.1%
UNPUnion Pacific Corporation
$256.88Price
Mkt Cap$152.5B
P/E21.5
ROE40.4%
Div Yield2.1%
HONHoneywell International Inc.
$229.01Price
Mkt Cap$145.11B
P/E31.1
ROE27.3%
Div Yield2%
VRTVertiv Holdings Co
$333.05Price
Mkt Cap$127.93B
P/E97.7
ROE41.8%
Div Yield0.1%
PHParker-Hannifin Corporation
$953.27Price
Mkt Cap$120.32B
P/E35.2
ROE27.4%
Div Yield0.7%
LMTLockheed Martin Corporation
$510.95Price
Mkt Cap$117.75B
P/E23.8
ROE76.9%
Div Yield2.6%
HWMHowmet Aerospace Inc.
$277.66Price
Mkt Cap$111.09B
P/E74.8
ROE30.4%
Div Yield0.2%
TTTrane Technologies plc
$483.40Price
Mkt Cap$106.99B
P/E37.2
ROE36.3%
Div Yield0.8%
PWRQuanta Services, Inc.
$702.25Price
Mkt Cap$105.38B
P/E103.3
ROE12.6%
Div Yield0.1%
CMICummins Inc.
$716.86Price
Mkt Cap$99.04B
P/E35.0
ROE23%
Div Yield1.1%
GDGeneral Dynamics Corporation
$350.01Price
Mkt Cap$94.65B
P/E22.6
ROE17.7%
Div Yield1.7%
UPSUnited Parcel Service, Inc.
$105.00Price
Mkt Cap$89.22B
P/E16.0
ROE33.8%
Div Yield6%
JCIJohnson Controls International plc
$144.82Price
Mkt Cap$88.36B
P/E55.1
ROE21.7%
Div Yield1%
ADPAutomatic Data Processing, Inc.
$218.41Price
Mkt Cap$87.94B
P/E21.9
ROE76%
Div Yield2.7%
WMWaste Management, Inc.
$214.60Price
Mkt Cap$86.56B
P/E32.0
ROE29.7%
Div Yield1.5%
CSXCSX Corporation
$45.63Price
Mkt Cap$84.79B
P/E29.6
ROE22.5%
Div Yield1.1%
EMREmerson Electric Co.
$150.66Price
Mkt Cap$84.38B
P/E37.3
ROE9.6%
Div Yield1.4%
MMM3M Company
$160.60Price
Mkt Cap$83.76B
P/E26.8
ROE75.2%
Div Yield1.4%
BEBloom Energy Corporation
$328.91Price
Mkt Cap$79.07B
P/E-888.9
ROE-12.8%
Div Yield0%
FDXFedEx Corporation
$326.20Price
Mkt Cap$77.83B
P/E19.4
ROE14.7%
Div Yield1.7%
CPCanadian Pacific Kansas City Ltd.
$86.03Price
Mkt Cap$77.23B
P/E27.0
ROE8.7%
Div Yield0.7%
ITWIllinois Tool Works Inc.
$264.09Price
Mkt Cap$76.11B
P/E25.2
ROE93.7%
Div Yield2.3%
TDGTransDigm Group Incorporated
$1328.31Price
Mkt Cap$75.01B
P/E41.4
ROE—
Div Yield12.5%
NOCNorthrop Grumman Corporation
$521.50Price
Mkt Cap$74.07B
P/E17.9
ROE26.2%
Div Yield1.7%
CNICanadian National Railway Company
$113.43Price
Mkt Cap$69.35B
P/E21.2
ROE22.1%
Div Yield2.2%
Market Comparison
Industrials Sector vs S&P 500 in one glance
This should answer the only question that matters here: are you getting something better than the market for the price you are paying?
Price vs market
Cheaper
7% below S&P 500 trailing P/E
Quality vs market
Lower quality
Net margin 13.0% vs 25.7%; ROE 33.3% vs 47.7%
Income vs market
Higher yield
Sector yield 1.39% vs 1.00%
Comparison table
Winner should register in under three seconds.
| Metric | Industrials Sector | S&P 500 | Delta | Winner |
|---|---|---|---|---|
Trailing P/E Sector is cheaper | 32.0x | 34.5x | -7% | Sector cheaper |
Forward P/E Market is cheaper | 26.5x | 24.2x | +10% | S&P 500 cheaper |
EV/EBITDA Sector is cheaper | 20.1x | 23.1x | -13% | Sector cheaper |
Net Margin Market is stronger | 13.0% | 25.7% | -49% | S&P 500 stronger |
ROE Market is stronger | 33.3% | 47.7% | -30% | S&P 500 stronger |
Dividend Yield Sector is stronger | 1.4% | 1.0% | +39% | Sector yields more |
History check
Is the current premium normal?
1-year contextRich vs history
98th percentile; range 28.3x to 32.1x
5-year contextAbove normal
70th percentile; range 16.5x to 38.7x
Internal health
Median revenue growth5.6%
Median gross margin34.9%
Median FCF margin12.9%
Against the S&P 500, Industrials Sector currently trades at 32.0x trailing earnings versus 34.5x for the broad market. That premium only makes sense if investors keep believing the sector deserves better margins, stronger returns on equity, and more durable growth than the index overall.
Industry Breakdown
Where the real weight sits inside Industrials Sector
These cards are built from the full sector universe, then ranked by market cap so you can see which pockets are leading, rich, resilient, or dangerously concentrated.
Industry Scoreboard
Fast scan of Industrials Sector industry setups
Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.
Aerospace & Defense 76 stocks | 21.6% $1.67T | Neutral +1.3% median 3M | Premium 33.2x median Fwd P/E | Mixed 6.3% median ROE | Strong 14.8% rev growth | Mixed Diversified |
Industrial Machinery 81 stocks | 15.5% $1.2T | Neutral +12.5% median 3M | Premium 23.2x median Fwd P/E | High 8.8% median ROE | Weak 7.1% rev growth | Mixed Diversified |
Agricultural Machinery 23 stocks | 10.1% $783.05B | Neutral +5.6% median 3M | Fair 18.9x median Fwd P/E | Mixed 7.3% median ROE | Weak -0.7% rev growth | Mixed One-name heavy |
Railroads 11 stocks | 6.5% $502.93B | Neutral +13.1% median 3M | Fair 20.4x median Fwd P/E | High 14.2% median ROE | Weak -0.9% rev growth | Watchlist Concentrated |
Engineering & Construction 50 stocks | 5.5% $425.65B | Leading +13.9% median 3M | Premium 25.2x median Fwd P/E | Mixed 14.6% median ROE | Strong 14.7% rev growth | Expensive Leader Diversified |
Construction 28 stocks | 4.9% $376.41B | Neutral +12.3% median 3M | Fair 19.0x median Fwd P/E | Mixed 10.0% median ROE | Weak 1.4% rev growth | Mixed Concentrated |
Electrical Equipment 51 stocks | 4.3% $334.06B | Neutral +9.7% median 3M | Premium 23.9x median Fwd P/E | Weak -3.2% median ROE | Strong 9.6% rev growth | Mixed Concentrated |
Freight & Logistics 30 stocks | 3.8% $297.14B | Neutral +3.6% median 3M | Fair 26.9x median Fwd P/E | Mixed 6.6% median ROE | Weak -0.9% rev growth | Mixed Concentrated |
Conglomerates 19 stocks | 3.5% $266.76B | Neutral +8.2% median 3M | Fair 21.8x median Fwd P/E | Mixed 6.8% median ROE | Weak 2.4% rev growth | Mixed One-name heavy |
Airlines & Airports 29 stocks | 3.2% $246.23B | Neutral +11.0% median 3M | Cheap 12.9x median Fwd P/E | Mixed 16.0% median ROE | Strong 4.4% rev growth | Attractive Diversified |
Industrial Distribution 19 stocks | 3.2% $245.13B | Leading +7.4% median 3M | Premium 28.3x median Fwd P/E | Mixed 19.0% median ROE | Average 6.8% rev growth | Expensive Leader Concentrated |
Waste Management 20 stocks | 2.9% $224.83B | Lagging -8.8% median 3M | Premium 31.0x median Fwd P/E | Mixed 0.9% median ROE | Weak 2.5% rev growth | Broken One-name heavy |
Business Services 43 stocks | 2.8% $213.72B | Lagging +2.2% median 3M | Fair 18.9x median Fwd P/E | Mixed 0.4% median ROE | Average 4.4% rev growth | Mixed Concentrated |
Rental & Leasing 24 stocks | 2.5% $190.42B | Leading +32.5% median 3M | Cheap 20.7x median Fwd P/E | Mixed 10.7% median ROE | Weak 3.1% rev growth | Mixed Concentrated |
Staffing & HR 27 stocks | 1.9% $147.59B | Neutral +18.7% median 3M | Cheap 17.6x median Fwd P/E | Mixed 3.1% median ROE | Weak -1.2% rev growth | Mixed One-name heavy |
Trucking 18 stocks | 1.3% $102.08B | Leading +44.8% median 3M | Premium 38.4x median Fwd P/E | Weak 0.5% median ROE | Weak -0.7% rev growth | Mixed One-name heavy |
Metal Fabrication 21 stocks | 1.2% $94.21B | Leading +28.7% median 3M | Premium 18.4x median Fwd P/E | Mixed 9.5% median ROE | Strong 4.2% rev growth | Expensive Leader Concentrated |
Tools & Accessories 11 stocks | 1.2% $92.17B | Leading +6.6% median 3M | Fair 20.1x median Fwd P/E | Mixed 8.9% median ROE | Strong 3.8% rev growth | Watchlist Concentrated |
Consulting Services 23 stocks | 1.0% $73.78B | Lagging -11.7% median 3M | Cheap 14.6x median Fwd P/E | High 14.6% median ROE | Weak 2.7% rev growth | Broken Concentrated |
Infrastructure Operations 2 stocks | 0.7% $56.55B | Leading +19.2% median 3M | Premium 51.1x median Fwd P/E | High 25.6% median ROE | Strong 5.6% rev growth | Expensive Leader One-name heavy |
Marine Shipping 46 stocks | 0.7% $50.85B | Neutral +5.9% median 3M | Cheap 6.1x median Fwd P/E | High 6.2% median ROE | Weak -1.7% rev growth | Attractive Diversified |
Environmental Services 16 stocks | 0.6% $46.65B | Neutral +11.7% median 3M | Fair 23.8x median Fwd P/E | Mixed 8.2% median ROE | Average 6.3% rev growth | Mixed Concentrated |
Security Services 26 stocks | 0.6% $44.85B | Lagging -5.0% median 3M | Cheap 15.9x median Fwd P/E | Mixed 7.7% median ROE | Strong 7.0% rev growth | Beaten Down Concentrated |
Midstream Oil & Gas 1 stocks | 0.3% $21.97B | Lagging -1.6% median 3M | Cheap 7.2x median Fwd P/E | Mixed 5.3% median ROE | Weak 6.7% rev growth | Broken One-name heavy |
Business Equipment 7 stocks | 0.2% $16.7B | Lagging -0.9% median 3M | Cheap 13.2x median Fwd P/E | Mixed 10.3% median ROE | Weak -0.5% rev growth | Broken One-name heavy |
Transportation 1 stocks | 0.0% $956M | Lagging -4.0% median 3M | Fair 17.5x median Fwd P/E | Weak 1.1% median ROE | Average - rev growth | Broken One-name heavy |
Textiles 1 stocks | 0.0% $434M | Neutral +14.0% median 3M | Cheap 15.4x median Fwd P/E | Weak -10.3% median ROE | Strong 49.3% rev growth | Attractive One-name heavy |
Auto Parts & Equipment 1 stocks | 0.0% $3M | Leading +34.4% median 3M | Fair - median Fwd P/E | Mixed - median ROE | Average - rev growth | Mixed One-name heavy |
Industrial Specialties 2 stocks | 0.0% $2M | Lagging -90.4% median 3M | Fair - median Fwd P/E | Mixed - median ROE | Average - rev growth | Mixed One-name heavy |
Showing 29 of 29 industries in Industrials Sector.
Setup is a quick read of value, quality, growth, momentum, and concentration together.
21.6% OF SECTOR
Aerospace & Defense
Premium vs sectorMixed qualityNeutralStrong growthDiversified
Aerospace & Defense is a core pocket of industrials, moving broadly in line with the rest of the sector; growth is running above sector norms, quality signals are mixed, and valuation still carries a premium.
Median 3M return
+1.3%
Forward P/E
33.2x
Top 3 weight
47.9%
Market cap
$1.67T
Coverage
76 stocks
Breadth
51% pos. in 3M
Open filtered screener
15.5% OF SECTOR
Industrial Machinery
Premium vs sectorHigh qualityNeutralWeak growthDiversified
Industrial Machinery is a major pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, business quality is stronger than the sector median, and valuation still carries a premium.
Median 3M return
+12.5%
Forward P/E
23.2x
Top 3 weight
33.0%
Market cap
$1.2T
Coverage
81 stocks
Breadth
70% pos. in 3M
Open filtered screener
10.1% OF SECTOR
Agricultural Machinery
Fairly pricedMixed qualityNeutralWeak growthOne-name heavy
Agricultural Machinery is a major pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+5.6%
Forward P/E
18.9x
Top 3 weight
87.4%
Market cap
$783.05B
Coverage
23 stocks
Breadth
82% pos. in 3M
Open filtered screener
6.5% OF SECTOR
Railroads
Fairly pricedHigh qualityNeutralWeak growthConcentrated
Railroads is a meaningful pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, business quality is stronger than the sector median, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
+13.1%
Forward P/E
20.4x
Top 3 weight
62.5%
Market cap
$502.93B
Coverage
11 stocks
Breadth
82% pos. in 3M
Open filtered screener
5.5% OF SECTOR
Engineering & Construction
Premium vs sectorMixed qualityLeadingStrong growthDiversified
Engineering & Construction is a meaningful pocket of industrials, still leading on price action; growth is running above sector norms, quality signals are mixed, and valuation still carries a premium.
Median 3M return
+13.9%
Forward P/E
25.2x
Top 3 weight
49.8%
Market cap
$425.65B
Coverage
50 stocks
Breadth
70% pos. in 3M
Open filtered screener
4.9% OF SECTOR
Construction
Fairly pricedMixed qualityNeutralWeak growthConcentrated
Construction is a smaller pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
+12.3%
Forward P/E
19.0x
Top 3 weight
67.8%
Market cap
$376.41B
Coverage
28 stocks
Breadth
82% pos. in 3M
Open filtered screener
4.3% OF SECTOR
Electrical Equipment
Premium vs sectorWeak qualityNeutralStrong growthConcentrated
Electrical Equipment is a smaller pocket of industrials, moving broadly in line with the rest of the sector; growth is running above sector norms, quality metrics trail the sector median, and valuation still carries a premium. Leadership is concentrated in a few names.
Median 3M return
+9.7%
Forward P/E
23.9x
Top 3 weight
70.5%
Market cap
$334.06B
Coverage
51 stocks
Breadth
61% pos. in 3M
Open filtered screener
3.8% OF SECTOR
Freight & Logistics
Fairly pricedMixed qualityNeutralWeak growthConcentrated
Freight & Logistics is a smaller pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is concentrated in a few names.
Median 3M return
+3.6%
Forward P/E
26.9x
Top 3 weight
64.9%
Market cap
$297.14B
Coverage
30 stocks
Breadth
53% pos. in 3M
Open filtered screener
3.5% OF SECTOR
Conglomerates
Fairly pricedMixed qualityNeutralWeak growthOne-name heavy
Conglomerates is a smaller pocket of industrials, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
+8.2%
Forward P/E
21.8x
Top 3 weight
90.0%
Market cap
$266.76B
Coverage
19 stocks
Breadth
74% pos. in 3M
Open filtered screener
3.2% OF SECTOR
Airlines & Airports
Cheap vs sectorMixed qualityNeutralStrong growthDiversified
Airlines & Airports is a smaller pocket of industrials, moving broadly in line with the rest of the sector; growth is running above sector norms, quality signals are mixed, and valuation sits below sector norms.
Median 3M return
+11.0%
Forward P/E
12.9x
Top 3 weight
50.9%
Market cap
$246.23B
Coverage
29 stocks
Breadth
78% pos. in 3M
Open filtered screener
3.2% OF SECTOR
Industrial Distribution
Premium vs sectorMixed qualityLeadingAverage growthConcentrated
Industrial Distribution is a smaller pocket of industrials, still leading on price action; growth is near the sector average, quality signals are mixed, and valuation still carries a premium. Leadership is concentrated in a few names.
Median 3M return
+7.4%
Forward P/E
28.3x
Top 3 weight
66.7%
Market cap
$245.13B
Coverage
19 stocks
Breadth
68% pos. in 3M
Open filtered screener
2.9% OF SECTOR
Waste Management
Premium vs sectorMixed qualityLaggingWeak growthOne-name heavy
Waste Management is a smaller pocket of industrials, currently lagging on price action; growth is softer than the sector average, quality signals are mixed, and valuation still carries a premium. Leadership is extremely concentrated in one or two names.
Median 3M return
-8.8%
Forward P/E
31.0x
Top 3 weight
84.0%
Market cap
$224.83B
Coverage
20 stocks
Breadth
25% pos. in 3M
Open filtered screener
Showing top 12 of 29 industries
Sector Outlook
Industrials Sector Outlook - Q1 2026
Updated Q1 2026
Aerospace, defense, electrification, and automation create pockets of structural demand even if the broader cycle turns uneven. Subgroup selection matters.
Quality shows up in execution, pricing, and after-market revenue — not just the latest quarterly growth rate.
Earnings Calendar
Upcoming Earnings in Industrials Sector
Earnings reports are the biggest near-term catalysts for sector moves. Track which names report in the next 60 days and size your positions accordingly.
No earnings in the next 60 days
Check individual stock pages for the latest earnings dates and estimated EPS.
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