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 15, 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. | $910.57 | $423.68B | 48.4 | 43.5% | 0.6% | ||
| GE Aerospace | $335.30 | $350.33B | 41.1 | 45.3% | 0.4% | ||
| RTX Corporation | $183.53 | $247.16B | 37.0 | 10.4% | 1.4% | ||
| The Boeing Company | $219.05 | $172.68B | 88.3 | 289.7% | 0.2% | ||
| Union Pacific Corporation | $272.70 | $161.9B | 22.8 | 40.4% | 2% | ||
| Deere & Company | $577.48 | $155.88B | 31.2 | 20.5% | 1.1% | ||
| Eaton Corporation plc | $391.39 | $151.98B | 37.4 | 21.5% | 1.1% | ||
| Honeywell International Inc. | $220.31 | $139.6B | 29.9 | 27.3% | 2.1% | ||
| Lockheed Martin Corporation | $540.33 | $124.53B | 25.1 | 76.9% | 2.5% | ||
| Vertiv Holdings Co | $302.87 | $116.34B | 88.8 | 41.8% | 0.1% | ||
| Parker-Hannifin Corporation | $903.48 | $114.03B | 33.3 | 27.4% | 0.7% | ||
| Quanta Services, Inc. | $707.74 | $106.2B | 104.1 | 12.6% | 0.1% | ||
| Howmet Aerospace Inc. | $264.67 | $105.9B | 71.3 | 30.4% | 0.2% | ||
| Trane Technologies plc | $458.25 | $101.43B | 35.3 | 36.3% | 0.8% | ||
| General Dynamics Corporation | $360.22 | $97.41B | 23.3 | 17.7% | 1.6% | ||
| United Parcel Service, Inc. | $108.10 | $91.85B | 16.5 | 33.8% | 5.9% | ||
| Cummins Inc. | $659.58 | $91.13B | 32.2 | 23% | 1.2% | ||
| Automatic Data Processing, Inc. | $226.21 | $91.08B | 22.7 | 76% | 2.6% | ||
| Waste Management, Inc. | $219.45 | $88.51B | 32.8 | 29.7% | 1.5% | ||
| Johnson Controls International plc | $144.96 | $88.44B | 55.1 | 21.7% | 1% | ||
| CSX Corporation | $47.57 | $88.39B | 30.9 | 22.5% | 1.1% | ||
| 3M Company | $158.32 | $82.57B | 26.4 | 75.2% | 1.4% | ||
| Canadian Pacific Kansas City Ltd. | $90.08 | $80.87B | 27.9 | 8.7% | 0.7% | ||
| FedEx Corporation | $338.31 | $80.72B | 20.1 | 14.7% | 1.6% | ||
| Emerson Electric Co. | $143.07 | $80.13B | 35.4 | 9.6% | 1.5% | ||
| Northrop Grumman Corporation | $550.33 | $78.17B | 18.9 | 26.2% | 1.6% | ||
| Illinois Tool Works Inc. | $257.43 | $74.19B | 24.5 | 93.7% | 2.4% | ||
| Canadian National Railway Company | $118.98 | $72.74B | 22.0 | 22.1% | 2.1% | ||
| Cintas Corporation | $176.28 | $71.03B | 40.1 | 40.3% | 0.8% | ||
| TransDigm Group Incorporated | $1256.05 | $70.93B | 39.2 | — | 13.2% |
CATCaterpillar Inc.
$910.57Price
Mkt Cap$423.68B
P/E48.4
ROE43.5%
Div Yield0.6%
GEGE Aerospace
$335.30Price
Mkt Cap$350.33B
P/E41.1
ROE45.3%
Div Yield0.4%
RTXRTX Corporation
$183.53Price
Mkt Cap$247.16B
P/E37.0
ROE10.4%
Div Yield1.4%
BAThe Boeing Company
$219.05Price
Mkt Cap$172.68B
P/E88.3
ROE289.7%
Div Yield0.2%
UNPUnion Pacific Corporation
$272.70Price
Mkt Cap$161.9B
P/E22.8
ROE40.4%
Div Yield2%
DEDeere & Company
$577.48Price
Mkt Cap$155.88B
P/E31.2
ROE20.5%
Div Yield1.1%
ETNEaton Corporation plc
$391.39Price
Mkt Cap$151.98B
P/E37.4
ROE21.5%
Div Yield1.1%
HONHoneywell International Inc.
$220.31Price
Mkt Cap$139.6B
P/E29.9
ROE27.3%
Div Yield2.1%
LMTLockheed Martin Corporation
$540.33Price
Mkt Cap$124.53B
P/E25.1
ROE76.9%
Div Yield2.5%
VRTVertiv Holdings Co
$302.87Price
Mkt Cap$116.34B
P/E88.8
ROE41.8%
Div Yield0.1%
PHParker-Hannifin Corporation
$903.48Price
Mkt Cap$114.03B
P/E33.3
ROE27.4%
Div Yield0.7%
PWRQuanta Services, Inc.
$707.74Price
Mkt Cap$106.2B
P/E104.1
ROE12.6%
Div Yield0.1%
HWMHowmet Aerospace Inc.
$264.67Price
Mkt Cap$105.9B
P/E71.3
ROE30.4%
Div Yield0.2%
TTTrane Technologies plc
$458.25Price
Mkt Cap$101.43B
P/E35.3
ROE36.3%
Div Yield0.8%
GDGeneral Dynamics Corporation
$360.22Price
Mkt Cap$97.41B
P/E23.3
ROE17.7%
Div Yield1.6%
UPSUnited Parcel Service, Inc.
$108.10Price
Mkt Cap$91.85B
P/E16.5
ROE33.8%
Div Yield5.9%
CMICummins Inc.
$659.58Price
Mkt Cap$91.13B
P/E32.2
ROE23%
Div Yield1.2%
ADPAutomatic Data Processing, Inc.
$226.21Price
Mkt Cap$91.08B
P/E22.7
ROE76%
Div Yield2.6%
WMWaste Management, Inc.
$219.45Price
Mkt Cap$88.51B
P/E32.8
ROE29.7%
Div Yield1.5%
JCIJohnson Controls International plc
$144.96Price
Mkt Cap$88.44B
P/E55.1
ROE21.7%
Div Yield1%
CSXCSX Corporation
$47.57Price
Mkt Cap$88.39B
P/E30.9
ROE22.5%
Div Yield1.1%
MMM3M Company
$158.32Price
Mkt Cap$82.57B
P/E26.4
ROE75.2%
Div Yield1.4%
CPCanadian Pacific Kansas City Ltd.
$90.08Price
Mkt Cap$80.87B
P/E27.9
ROE8.7%
Div Yield0.7%
FDXFedEx Corporation
$338.31Price
Mkt Cap$80.72B
P/E20.1
ROE14.7%
Div Yield1.6%
EMREmerson Electric Co.
$143.07Price
Mkt Cap$80.13B
P/E35.4
ROE9.6%
Div Yield1.5%
NOCNorthrop Grumman Corporation
$550.33Price
Mkt Cap$78.17B
P/E18.9
ROE26.2%
Div Yield1.6%
ITWIllinois Tool Works Inc.
$257.43Price
Mkt Cap$74.19B
P/E24.5
ROE93.7%
Div Yield2.4%
CNICanadian National Railway Company
$118.98Price
Mkt Cap$72.74B
P/E22.0
ROE22.1%
Div Yield2.1%
CTASCintas Corporation
$176.28Price
Mkt Cap$71.03B
P/E40.1
ROE40.3%
Div Yield0.8%
TDGTransDigm Group Incorporated
$1256.05Price
Mkt Cap$70.93B
P/E39.2
ROE—
Div Yield13.2%
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
8% below S&P 500 trailing P/E
Quality vs market
Lower quality
Net margin 13.0% vs 25.5%; ROE 33.3% vs 47.2%
Income vs market
Higher yield
Sector yield 1.41% 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 | 31.5x | 34.1x | -8% | Sector cheaper |
Forward P/E Market is cheaper | 26.1x | 23.5x | +11% | S&P 500 cheaper |
EV/EBITDA Sector is cheaper | 19.8x | 22.8x | -13% | Sector cheaper |
Net Margin Market is stronger | 13.0% | 25.5% | -49% | S&P 500 stronger |
ROE Market is stronger | 33.3% | 47.2% | -30% | S&P 500 stronger |
Dividend Yield Sector is stronger | 1.4% | 1.0% | +41% | Sector yields more |
History check
Is the current premium normal?
1-year contextRich vs history
100th percentile; range 28.3x to 31.5x
5-year contextAbove normal
67th 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 31.5x trailing earnings versus 34.1x 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 | 21.8% $1.65T | Neutral +1.3% median 3M | Premium 31.5x median Fwd P/E | Mixed 6.3% median ROE | Strong 14.8% rev growth | Mixed Diversified |
Industrial Machinery 81 stocks | 15.1% $1.14T | Neutral +7.2% median 3M | Premium 22.6x median Fwd P/E | High 8.8% median ROE | Weak 7.1% rev growth | Mixed Diversified |
Agricultural Machinery 23 stocks | 9.8% $742B | Neutral -1.4% median 3M | Fair 18.0x median Fwd P/E | Mixed 7.3% median ROE | Weak -0.7% rev growth | Mixed One-name heavy |
Railroads 11 stocks | 6.9% $524.53B | Neutral +11.0% median 3M | Fair 23.0x median Fwd P/E | High 14.2% median ROE | Weak -0.9% rev growth | Watchlist Concentrated |
Engineering & Construction 50 stocks | 5.5% $419.68B | Neutral +11.3% median 3M | Premium 24.9x median Fwd P/E | Mixed 14.6% median ROE | Strong 14.7% rev growth | Mixed Concentrated |
Construction 28 stocks | 4.8% $364.64B | Neutral +7.2% median 3M | Fair 18.6x median Fwd P/E | Mixed 10.0% median ROE | Weak 1.4% rev growth | Mixed Concentrated |
Freight & Logistics 30 stocks | 4.1% $310.95B | Leading +15.6% median 3M | Fair 28.0x median Fwd P/E | Mixed 6.6% median ROE | Weak -0.9% rev growth | Mixed Concentrated |
Electrical Equipment 51 stocks | 3.9% $298.82B | Lagging +8.6% median 3M | Premium 22.9x median Fwd P/E | Weak -3.2% median ROE | Strong 9.6% rev growth | Broken Concentrated |
Conglomerates 19 stocks | 3.4% $260.3B | Neutral +6.4% median 3M | Fair 21.3x median Fwd P/E | Mixed 6.8% median ROE | Weak 2.4% rev growth | Mixed One-name heavy |
Industrial Distribution 19 stocks | 3.1% $238.94B | Neutral +4.6% median 3M | Premium 27.5x median Fwd P/E | Mixed 19.0% median ROE | Average 6.8% rev growth | Mixed Concentrated |
Airlines & Airports 29 stocks | 3.1% $237.48B | Neutral +6.5% median 3M | Cheap 12.7x median Fwd P/E | Mixed 16.0% median ROE | Strong 4.4% rev growth | Attractive Diversified |
Waste Management 20 stocks | 3.0% $229.2B | Lagging -9.8% median 3M | Premium 31.2x median Fwd P/E | Mixed 0.9% median ROE | Weak 2.5% rev growth | Broken One-name heavy |
Business Services 43 stocks | 2.9% $219.9B | Neutral +4.2% median 3M | Fair 19.1x median Fwd P/E | Mixed 0.4% median ROE | Average 4.4% rev growth | Mixed Concentrated |
Rental & Leasing 24 stocks | 2.4% $185.62B | Leading +30.4% median 3M | Cheap 21.0x median Fwd P/E | Mixed 10.7% median ROE | Weak 3.1% rev growth | Mixed Concentrated |
Staffing & HR 27 stocks | 2.0% $152.08B | Neutral +20.2% median 3M | Fair 17.8x median Fwd P/E | Mixed 3.1% median ROE | Weak -1.2% rev growth | Mixed One-name heavy |
Trucking 18 stocks | 1.5% $113.16B | Leading +56.2% median 3M | Premium 42.2x median Fwd P/E | Weak 0.5% median ROE | Weak -0.7% rev growth | Mixed One-name heavy |
Metal Fabrication 21 stocks | 1.2% $91.42B | Leading +25.8% median 3M | Fair 18.4x median Fwd P/E | Mixed 9.5% median ROE | Strong 4.2% rev growth | Watchlist Concentrated |
Tools & Accessories 11 stocks | 1.2% $88.92B | Neutral -0.9% median 3M | Fair 19.8x median Fwd P/E | Mixed 8.9% median ROE | Strong 3.8% rev growth | Watchlist Concentrated |
Consulting Services 23 stocks | 1.0% $78.77B | Lagging -3.7% median 3M | Cheap 15.5x median Fwd P/E | High 14.6% median ROE | Weak 2.7% rev growth | Broken Concentrated |
Infrastructure Operations 2 stocks | 0.7% $55.32B | Leading +13.2% median 3M | Premium 50.0x 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% $53.66B | Leading +12.8% median 3M | Cheap 6.7x median Fwd P/E | High 6.2% median ROE | Weak -1.7% rev growth | Attractive Diversified |
Environmental Services 16 stocks | 0.6% $45.38B | Lagging +1.0% median 3M | Fair 22.0x median Fwd P/E | Mixed 8.2% median ROE | Average 6.3% rev growth | Mixed One-name heavy |
Security Services 26 stocks | 0.6% $44.84B | Lagging -5.0% median 3M | Cheap 15.5x median Fwd P/E | Mixed 7.7% median ROE | Strong 7.0% rev growth | Beaten Down Concentrated |
Midstream Oil & Gas 1 stocks | 0.3% $21.95B | Lagging -3.4% 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% $16.68B | Lagging -4.6% median 3M | Cheap 13.5x median Fwd P/E | Mixed 10.3% median ROE | Weak -0.5% rev growth | Broken One-name heavy |
Transportation 1 stocks | 0.0% $956M | Neutral -7.7% median 3M | Fair 17.5x median Fwd P/E | Weak 1.1% median ROE | Average - rev growth | Mixed One-name heavy |
Textiles 1 stocks | 0.0% $450M | Neutral +14.1% median 3M | Cheap 16.0x 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% $2M | Leading +20.2% 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 -87.1% 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.
21.8% 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
31.5x
Top 3 weight
46.6%
Market cap
$1.65T
Coverage
76 stocks
Breadth
53% pos. in 3M
Open filtered screener
15.1% 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
+7.2%
Forward P/E
22.6x
Top 3 weight
32.5%
Market cap
$1.14T
Coverage
81 stocks
Breadth
57% pos. in 3M
Open filtered screener
9.8% 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
-1.4%
Forward P/E
18.0x
Top 3 weight
86.8%
Market cap
$742B
Coverage
23 stocks
Breadth
36% pos. in 3M
Open filtered screener
6.9% 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
+11.0%
Forward P/E
23.0x
Top 3 weight
63.1%
Market cap
$524.53B
Coverage
11 stocks
Breadth
73% pos. in 3M
Open filtered screener
5.5% OF SECTOR
Engineering & Construction
Premium vs sectorMixed qualityNeutralStrong growthConcentrated
Engineering & Construction 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 still carries a premium. Leadership is concentrated in a few names.
Median 3M return
+11.3%
Forward P/E
24.9x
Top 3 weight
49.8%
Market cap
$419.68B
Coverage
50 stocks
Breadth
66% pos. in 3M
Open filtered screener
4.8% 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
+7.2%
Forward P/E
18.6x
Top 3 weight
68.1%
Market cap
$364.64B
Coverage
28 stocks
Breadth
68% pos. in 3M
Open filtered screener
4.1% OF SECTOR
Freight & Logistics
Fairly pricedMixed qualityLeadingWeak growthConcentrated
Freight & Logistics 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 concentrated in a few names.
Median 3M return
+15.6%
Forward P/E
28.0x
Top 3 weight
64.3%
Market cap
$310.95B
Coverage
30 stocks
Breadth
60% pos. in 3M
Open filtered screener
3.9% OF SECTOR
Electrical Equipment
Premium vs sectorWeak qualityLaggingStrong growthConcentrated
Electrical Equipment is a smaller pocket of industrials, currently lagging on price action; 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
+8.6%
Forward P/E
22.9x
Top 3 weight
68.8%
Market cap
$298.82B
Coverage
51 stocks
Breadth
57% pos. in 3M
Open filtered screener
3.4% 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
+6.4%
Forward P/E
21.3x
Top 3 weight
89.5%
Market cap
$260.3B
Coverage
19 stocks
Breadth
79% pos. in 3M
Open filtered screener
3.1% 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
+4.6%
Forward P/E
27.5x
Top 3 weight
67.1%
Market cap
$238.94B
Coverage
19 stocks
Breadth
68% pos. in 3M
Open filtered screener
3.1% 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
+6.5%
Forward P/E
12.7x
Top 3 weight
51.9%
Market cap
$237.48B
Coverage
29 stocks
Breadth
67% pos. in 3M
Open filtered screener
3.0% 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
-9.8%
Forward P/E
31.2x
Top 3 weight
84.2%
Market cap
$229.2B
Coverage
20 stocks
Breadth
15% 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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