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 May 6, 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 | |
|---|---|---|---|---|---|---|---|
| Spire Global, Inc. | $16.46 | $541.04B | 10.2 | 0.1% | — | ||
| Caterpillar Inc. | $904.59 | $420.89B | 48.0 | 43.5% | 0.6% | ||
| GE Aerospace | $286.68 | $299.53B | 35.1 | 45.3% | 0.5% | ||
| RTX Corporation | $172.87 | $232.8B | 34.9 | 10.4% | 1.5% | ||
| The Boeing Company | $224.38 | $176.88B | 90.5 | 289.7% | 0.2% | ||
| Eaton Corporation plc | $410.86 | $159.41B | 39.3 | 21.5% | 1% | ||
| Union Pacific Corporation | $264.01 | $156.74B | 22.1 | 40.4% | 2.1% | ||
| Deere & Company | $575.79 | $156.08B | 31.1 | 19.3% | 1.1% | ||
| Honeywell International Inc. | $209.06 | $132.47B | 28.4 | 27.3% | 2.2% | ||
| Vertiv Holdings Co | $341.02 | $130.99B | 100.0 | 41.8% | 0.1% | ||
| Lockheed Martin Corporation | $509.02 | $117.31B | 23.7 | 76.9% | 2.7% | ||
| Quanta Services, Inc. | $771.61 | $115.79B | 113.5 | 12.6% | 0.1% | ||
| Parker-Hannifin Corporation | $872.69 | $110.15B | 32.2 | 27.4% | 0.8% | ||
| Trane Technologies plc | $477.45 | $105.67B | 36.8 | 36.3% | 0.8% | ||
| Howmet Aerospace Inc. | $242.69 | $97.3B | 65.4 | 30.4% | 0.2% | ||
| General Dynamics Corporation | $349.16 | $94.42B | 22.6 | 17.7% | 1.7% | ||
| Cummins Inc. | $675.00 | $93.26B | 32.9 | 23% | 1.1% | ||
| Waste Management, Inc. | $224.49 | $90.54B | 33.5 | 29.7% | 1.5% | ||
| Johnson Controls International plc | $144.82 | $88.64B | 55.1 | 21.7% | 1% | ||
| FedEx Corporation | $362.75 | $85.29B | 21.6 | 14.7% | 1.5% | ||
| Automatic Data Processing, Inc. | $210.60 | $84.8B | 21.1 | 76% | 2.8% | ||
| CSX Corporation | $45.03 | $83.67B | 29.2 | 22.5% | 1.2% | ||
| United Parcel Service, Inc. | $98.07 | $83.33B | 14.9 | 33.8% | 6.5% | ||
| Northrop Grumman Corporation | $558.60 | $79.34B | 19.2 | 26.2% | 1.6% | ||
| Emerson Electric Co. | $138.40 | $77.82B | 34.3 | 9.6% | 1.5% | ||
| Canadian Pacific Kansas City Ltd. | $83.50 | $74.96B | 25.2 | 8.7% | 0.8% | ||
| 3M Company | $142.82 | $74.49B | 23.8 | 75.2% | 1.5% | ||
| Illinois Tool Works Inc. | $254.55 | $73.36B | 24.3 | 93.7% | 2.4% | ||
| Bloom Energy Corporation | $295.25 | $70.98B | -798.0 | -12.8% | 0% | ||
| Norfolk Southern Corporation | $313.57 | $70.42B | 24.6 | 19.2% | 1.7% |
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
9% below S&P 500 trailing P/E
Quality vs market
Lower quality
Net margin 12.9% vs 24.3%; ROE 32.8% vs 44.1%
Income vs market
Higher yield
Sector yield 1.46% vs 0.99%
Comparison table
Winner should register in under three seconds.
| Metric | Industrials Sector | S&P 500 | Delta | Winner |
|---|---|---|---|---|
Trailing P/E Sector is cheaper | 30.5x | 33.6x | -9% | Sector cheaper |
Forward P/E Close to market | 25.6x | 24.4x | +5% | Near parity |
EV/EBITDA Sector is cheaper | 19.3x | 22.0x | -13% | Sector cheaper |
Net Margin Market is stronger | 12.9% | 24.3% | -47% | S&P 500 stronger |
ROE Market is stronger | 32.8% | 44.1% | -26% | S&P 500 stronger |
Dividend Yield Sector is stronger | 1.5% | 1.0% | +47% | Sector yields more |
History check
Is the current premium normal?
1-year contextAbove normal
79th percentile; range 28.3x to 31.1x
5-year contextAbove normal
60th percentile; range 16.5x to 39.8x
Internal health
Median revenue growth5.4%
Median gross margin34.9%
Median FCF margin12.7%
Against the S&P 500, Industrials Sector currently trades at 30.5x trailing earnings versus 33.6x 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 | 19.4% $1.53T | Neutral -2.2% median 3M | Premium 30.7x median Fwd P/E | Mixed 4.9% median ROE | Strong 11.1% rev growth | Mixed Diversified |
Industrial Machinery 81 stocks | 14.5% $1.14T | Neutral -0.5% median 3M | Premium 21.8x median Fwd P/E | High 8.6% median ROE | Average 6.1% rev growth | Mixed Diversified |
Business Services 43 stocks | 9.7% $763.85B | Neutral -2.5% median 3M | Fair 18.2x median Fwd P/E | Mixed 1.1% median ROE | Strong 2.5% rev growth | Watchlist One-name heavy |
Agricultural Machinery 23 stocks | 8.7% $681.99B | Neutral -6.7% median 3M | Fair 18.4x median Fwd P/E | Mixed 6.5% median ROE | Weak -1.9% rev growth | Mixed One-name heavy |
Railroads 11 stocks | 6.4% $503.09B | Leading +9.7% median 3M | Fair 21.6x median Fwd P/E | High 14.2% median ROE | Weak -0.9% rev growth | Watchlist Concentrated |
Engineering & Construction 50 stocks | 5.8% $455.45B | Leading +19.7% median 3M | Premium 31.4x median Fwd P/E | Mixed 14.5% median ROE | Strong 14.7% rev growth | Expensive Leader Concentrated |
Construction 28 stocks | 4.6% $362.56B | Neutral -8.1% median 3M | Fair 19.8x median Fwd P/E | Mixed 10.3% median ROE | Weak 1.4% rev growth | Mixed Concentrated |
Electrical Equipment 51 stocks | 4.1% $325.74B | Neutral -0.7% median 3M | Premium 25.3x median Fwd P/E | Weak -0.0% median ROE | Strong 9.6% rev growth | Mixed Concentrated |
Freight & Logistics 30 stocks | 3.8% $295.74B | Neutral -0.8% median 3M | Fair 22.9x median Fwd P/E | Mixed 5.8% median ROE | Weak -0.9% rev growth | Mixed Concentrated |
Conglomerates 19 stocks | 3.1% $244.87B | Leading +6.5% median 3M | Fair 19.4x median Fwd P/E | Mixed 5.5% median ROE | Weak 2.4% rev growth | Mixed One-name heavy |
Waste Management 20 stocks | 2.9% $231.97B | Lagging -6.8% median 3M | Premium 32.9x median Fwd P/E | Mixed 0.9% median ROE | Average 3.2% rev growth | Mixed One-name heavy |
Industrial Distribution 19 stocks | 2.9% $224.78B | Neutral -4.1% median 3M | Premium 27.4x median Fwd P/E | Mixed 19.0% median ROE | Average 5.9% rev growth | Mixed Concentrated |
Airlines & Airports 29 stocks | 2.6% $205.69B | Lagging -18.2% median 3M | Cheap 11.2x median Fwd P/E | Mixed 13.9% median ROE | Strong 3.3% rev growth | Beaten Down Diversified |
Rental & Leasing 24 stocks | 2.2% $169.66B | Leading +4.1% median 3M | Cheap 19.7x median Fwd P/E | High 11.5% median ROE | Weak 1.9% rev growth | Attractive Concentrated |
Staffing & HR 27 stocks | 1.9% $147.07B | Lagging -9.1% median 3M | Cheap 16.7x median Fwd P/E | Mixed 3.7% median ROE | Average 1.2% rev growth | Beaten Down One-name heavy |
Trucking 18 stocks | 1.1% $89.84B | Leading +6.1% median 3M | Fair 34.0x median Fwd P/E | Weak 0.5% median ROE | Weak -0.7% rev growth | Mixed One-name heavy |
Tools & Accessories 11 stocks | 1.1% $87.53B | Neutral -2.9% median 3M | Fair 18.6x median Fwd P/E | Mixed 8.1% median ROE | Weak 0.4% rev growth | Mixed Concentrated |
Consulting Services 23 stocks | 1.1% $84.4B | Lagging -6.4% median 3M | Cheap 16.4x median Fwd P/E | High 15.1% median ROE | Weak 5.6% rev growth | Broken Concentrated |
Metal Fabrication 21 stocks | 1.0% $78.72B | Leading +4.5% median 3M | Fair 19.7x median Fwd P/E | Mixed 9.7% median ROE | Strong 3.7% rev growth | Watchlist Concentrated |
Marine Shipping 46 stocks | 0.7% $56.62B | Leading +25.3% median 3M | Cheap 7.9x median Fwd P/E | High 6.4% median ROE | Weak -9.0% rev growth | Attractive Diversified |
Infrastructure Operations 2 stocks | 0.7% $56.16B | Leading +4.9% median 3M | Fair 48.1x median Fwd P/E | High 26.3% median ROE | Strong 5.6% rev growth | Watchlist One-name heavy |
Environmental Services 16 stocks | 0.6% $48.16B | Lagging -8.3% median 3M | Premium 26.4x median Fwd P/E | Mixed 5.4% median ROE | Average 5.9% rev growth | Mixed One-name heavy |
Security Services 26 stocks | 0.6% $45.83B | Neutral -4.1% median 3M | Cheap 16.1x median Fwd P/E | Mixed 9.7% median ROE | Strong 5.6% rev growth | Attractive Diversified |
Midstream Oil & Gas 1 stocks | 0.3% $22.33B | Neutral -2.6% median 3M | Cheap 7.3x median Fwd P/E | Mixed 5.3% median ROE | Weak 6.7% rev growth | Mixed One-name heavy |
Business Equipment 7 stocks | 0.2% $17.04B | Lagging -10.5% median 3M | Cheap 13.3x median Fwd P/E | Mixed 10.3% median ROE | Weak -0.5% rev growth | Broken One-name heavy |
Transportation 1 stocks | 0.0% $885M | Neutral -21.4% median 3M | Fair 14.9x median Fwd P/E | Weak 1.7% median ROE | Average - rev growth | Mixed One-name heavy |
Textiles 1 stocks | 0.0% $360M | Neutral -32.4% median 3M | Fair 12.8x median Fwd P/E | Weak -14.4% median ROE | Average 105.2% rev growth | Mixed One-name heavy |
Auto Parts & Equipment 1 stocks | 0.0% $19M | Leading +32.5% median 3M | Fair - median Fwd P/E | Weak -158.3% median ROE | Average - rev growth | Mixed One-name heavy |
Industrial Specialties 2 stocks | 0.0% $2M | Lagging -90.3% 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.
19.4% OF SECTOR
Aerospace & Defense
Premium vs sectorMixed qualityNeutralStrong growthDiversified
Aerospace & Defense is a major 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
-2.2%
Forward P/E
30.7x
Top 3 weight
46.5%
Market cap
$1.53T
Coverage
76 stocks
Breadth
46% pos. in 3M
Open filtered screener
14.5% OF SECTOR
Industrial Machinery
Premium vs sectorHigh qualityNeutralAverage growthDiversified
Industrial Machinery is a major pocket of industrials, moving broadly in line with the rest of the sector; growth is near the sector average, business quality is stronger than the sector median, and valuation still carries a premium.
Median 3M return
-0.5%
Forward P/E
21.8x
Top 3 weight
32.2%
Market cap
$1.14T
Coverage
81 stocks
Breadth
48% pos. in 3M
Open filtered screener
9.7% OF SECTOR
Business Services
Fairly pricedMixed qualityNeutralStrong growthOne-name heavy
Business Services is a meaningful 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 is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
-2.5%
Forward P/E
18.2x
Top 3 weight
85.2%
Market cap
$763.85B
Coverage
43 stocks
Breadth
49% pos. in 3M
Open filtered screener
8.7% OF SECTOR
Agricultural Machinery
Fairly pricedMixed qualityNeutralWeak growthOne-name heavy
Agricultural Machinery is a meaningful 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
-6.7%
Forward P/E
18.4x
Top 3 weight
93.4%
Market cap
$681.99B
Coverage
23 stocks
Breadth
36% pos. in 3M
Open filtered screener
6.4% OF SECTOR
Railroads
Fairly pricedHigh qualityLeadingWeak growthConcentrated
Railroads is a meaningful pocket of industrials, still leading on price action; 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
+9.7%
Forward P/E
21.6x
Top 3 weight
62.7%
Market cap
$503.09B
Coverage
11 stocks
Breadth
82% pos. in 3M
Open filtered screener
5.8% OF SECTOR
Engineering & Construction
Premium vs sectorMixed qualityLeadingStrong growthConcentrated
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. Leadership is concentrated in a few names.
Median 3M return
+19.7%
Forward P/E
31.4x
Top 3 weight
49.7%
Market cap
$455.45B
Coverage
50 stocks
Breadth
70% pos. in 3M
Open filtered screener
4.6% 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
-8.1%
Forward P/E
19.8x
Top 3 weight
68.4%
Market cap
$362.56B
Coverage
28 stocks
Breadth
32% pos. in 3M
Open filtered screener
4.1% 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
-0.7%
Forward P/E
25.3x
Top 3 weight
70.4%
Market cap
$325.74B
Coverage
51 stocks
Breadth
49% 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
-0.8%
Forward P/E
22.9x
Top 3 weight
65.3%
Market cap
$295.74B
Coverage
30 stocks
Breadth
43% pos. in 3M
Open filtered screener
3.1% OF SECTOR
Conglomerates
Fairly pricedMixed qualityLeadingWeak growthOne-name heavy
Conglomerates is a smaller pocket of industrials, still leading on price action; 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
+6.5%
Forward P/E
19.4x
Top 3 weight
88.7%
Market cap
$244.87B
Coverage
19 stocks
Breadth
68% pos. in 3M
Open filtered screener
2.9% OF SECTOR
Waste Management
Premium vs sectorMixed qualityLaggingAverage growthOne-name heavy
Waste Management is a smaller pocket of industrials, currently lagging on price action; growth is near 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
-6.8%
Forward P/E
32.9x
Top 3 weight
83.6%
Market cap
$231.97B
Coverage
20 stocks
Breadth
30% pos. in 3M
Open filtered screener
2.9% OF SECTOR
Industrial Distribution
Premium vs sectorMixed qualityNeutralAverage growthConcentrated
Industrial Distribution is a smaller pocket of industrials, moving broadly in line with the rest of the sector; 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
-4.1%
Forward P/E
27.4x
Top 3 weight
68.5%
Market cap
$224.78B
Coverage
19 stocks
Breadth
42% 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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