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.
Electrification and defense backlogs support leaders like General Electric, Caterpillar, and Honeywell. This dashboard tracks valuation trends, equal-weight performance, and sector component data across all 800+ aerospace, machinery, and transport stocks.
Sector Market Cap
$4.52T
Tracks 707 stocks · top 50 by market cap
Median YTD Return
+9%
Screener universe · median stock return
Median P/E
33.7x
Screener stocks · excludes outliers
Median Dividend Yield
1.10%
Screener stocks · excludes zeros
Sector Screener
Scan the sector leaders, compare valuations and fundamentals, then open the full screener to refine your criteria.
| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| Caterpillar Inc. | $863.44 | $397.73B | 45.9 | 43.5% | 0.7% | ||
| GE Aerospace | $309.39 | $321.01B | 37.9 | 45.3% | 0.4% | ||
| RTX Corporation | $183.29 | $247.03B | 37.0 | 10.4% | 1.4% | ||
| Deere & Company | $682.79 | $184.31B | 36.9 | 20.5% | 0.9% | ||
| Eaton Corporation plc | $445.09 | $172.83B | 42.6 | 21.5% | 0.9% | ||
| Union Pacific Corporation | $276.61 | $164.33B | 23.1 | 40.4% | 2% | ||
| The Boeing Company | $189.82 | $150.03B | 76.5 | 289.7% | 0.2% | ||
| Parker-Hannifin Corporation | $984.91 | $124.18B | 115.3 | 7.3% | 0.7% | ||
| Lockheed Martin Corporation | $510.12 | $117.73B | 23.7 | 76.9% | 2.6% | ||
| Quanta Services, Inc. | $719.56 | $107.98B | 105.8 | 12.6% | 0.1% | ||
| Trane Technologies plc | $476.39 | $105.31B | 36.7 | 36.3% | 0.8% | ||
| Automatic Data Processing, Inc. | $262.36 | $104.87B | 24.0 | 72.2% | 2.5% | ||
| Vertiv Holdings Co | $253.14 | $97.46B | 74.2 | 41.8% | 0.1% | ||
| Johnson Controls International plc | $158.76 | $96.17B | 60.4 | 21.7% | 0.9% | ||
| Howmet Aerospace Inc. | $231.60 | $92.66B | 62.4 | 30.4% | 0.2% | ||
| Emerson Electric Co. | $161.38 | $90.39B | 39.9 | 9.6% | 1.3% | ||
| General Dynamics Corporation | $331.33 | $89.64B | 21.4 | 17.7% | 1.8% | ||
| CSX Corporation | $47.50 | $87.99B | 30.8 | 22.5% | 1.1% | ||
| Bloom Energy Corporation | $295.78 | $87.12B | -799.4 | -12.8% | 0% | ||
| 3M Company | $163.64 | $84.39B | 27.3 | 75.2% | 1.3% | ||
| Waste Management, Inc. | $207.88 | $83.09B | 31.0 | 29.7% | 1.6% | ||
| United Parcel Service, Inc. | $93.11 | $79.1B | 14.2 | 33.8% | 6.8% | ||
| Cintas Corporation | $195.96 | $78.41B | 39.9 | 40.7% | 0.9% | ||
| Illinois Tool Works Inc. | $267.14 | $76.86B | 25.5 | 93.7% | 2.3% | ||
| Canadian Pacific Kansas City Ltd. | $85.43 | $75.1B | 26.9 | 8.7% | 0.7% | ||
| Cummins Inc. | $535.31 | $73.87B | 26.1 | 23% | 1.4% | ||
| Canadian National Railway Company | $118.41 | $71.63B | 22.2 | 22.1% | 2.1% | ||
| Norfolk Southern Corporation | $316.31 | $71.05B | 24.8 | 19.2% | 1.7% | ||
| FedEx Corporation | $289.03 | $68.96B | 15.6 | 14.8% | 2% | ||
| Northrop Grumman Corporation | $483.11 | $68.63B | 16.6 | 26.2% | 1.9% |
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ADP
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NOCSector Outlook
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.
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.
Learn
Industrials groups capital goods, transportation, logistics, commercial services, and aerospace and defense. It is one of the market's broadest sectors.
Some industrial stocks are cyclical and move with factory activity or freight. Others have recurring aftermarket and service revenue that supports steadier margins.
A high-quality industrial with service revenue behaves very differently from a short-cycle machinery name, even though both carry the same sector label.
XLI offers broad industrial exposure, but stock selection adds value because aerospace, logistics, machinery, and defense have very different demand patterns and margin structures.
Key risks: slower industrial production, weaker freight, capex pullbacks, and cost inflation. Companies with larger service revenue and backlog visibility hold up better.
The screener helps sort by valuation, profitability, and growth. The best setups combine operating leverage with discipline.
Explore Further
Aerospace, defense, machinery, transport, logistics, electrical equipment, and capital goods companies. The screener above shows the sector list.
Explore More
Dive into other sector analyses with performance tracking, valuation metrics, and industry breakdowns.
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Screen and research consumer cyclical sector stocks with daily updated valuations, margins, and pre-filtered metrics for retail, autos, and restaurants in 2026.
Screen and research consumer defensive sector stocks with daily updated valuations, dividend yields, and metrics for food, household goods, and staples retail in 2026.
Screen and research energy sector stocks with daily updated valuations, free cash flows, and metrics for oil, gas, refining, and service companies in 2026.
Use our powerful screener to filter Industrials stocks by market cap, valuation, profitability, and dozens of other fundamental metrics.
Valuation, growth, profitability, technicals
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Track the XLI sector ETF performance vs S&P 500. The basket shows equal-weight returns of top 50 stocks by market cap.
Momentum Leaders
Market Comparison
Against the S&P 500, Industrials currently trades at 30.8x trailing earnings versus 34.7x for the broad market. This discount reflects the sector's lower profitability metrics compared to the broader index.
Valuation
11% below S&P 500 trailing P/E
| Metric | Industrials | S&P 500 | Winner |
|---|---|---|---|
| Trailing P/E | 30.8x | 34.7x | Sector cheaper |
| Forward P/E | 25.3x | 23.1x | S&P 500 cheaper |
| EV/EBITDA | 19.5x | 23.5x | Sector cheaper |
47th percentile; range 28.3x to 33.7x
83th percentile; range 16.5x to 33.7x
Quality
Net margin 13.3% vs 28.5%; ROE 35.7% vs 49.2%
| Metric | Industrials | S&P 500 | Winner |
|---|---|---|---|
| Net Margin | 13.3% | 28.5% | S&P 500 stronger |
| ROE | 35.7% | 49.2% | S&P 500 stronger |
Income
Sector yield 1.47% vs 0.97%
| Metric | Industrials | S&P 500 | Winner |
|---|---|---|---|
| Dividend Yield | 1.5% | 1.0% | Sector yields more |
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
Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.
Aerospace & Defense 76 stocks | 20.7% $1.48T | Lagging -16.8% median 3M | Premium 25.9x median Fwd P/E | Mixed 4.9% median ROE | Strong 16.8% rev growth | Mixed Diversified |
Industrial Machinery 81 stocks | 16.1% $1.15T | Neutral -9.5% median 3M | Premium 21.8x median Fwd P/E | High 10.0% median ROE | Weak 7.3% rev growth | Mixed Diversified |
Agricultural Machinery 23 stocks | 9.6% $687.37B | Neutral -2.1% median 3M | Cheap 17.8x median Fwd P/E | Mixed 4.1% median ROE | Weak 1.7% rev growth | Mixed One-name heavy |
Railroads 11 stocks | 7.3% $523.2B | Leading -2.9% median 3M | Fair 18.9x median Fwd P/E | High 14.1% median ROE | Weak 3.7% rev growth | Watchlist Concentrated |
Engineering & Construction 50 stocks | 5.3% $378.77B | Neutral -7.6% median 3M | Premium 24.0x median Fwd P/E | Mixed 14.6% median ROE | Strong 15.1% rev growth | Mixed Concentrated |
Construction 28 stocks | 4.9% $350.01B | Neutral -6.4% median 3M | Fair 18.7x median Fwd P/E | Mixed 7.7% median ROE | Weak 1.8% rev growth | Mixed Concentrated |
Electrical Equipment 51 stocks | 4.2% $297.09B | Lagging -20.2% median 3M | Fair 21.5x median Fwd P/E | Weak -4.9% median ROE | Average 7.0% rev growth | Broken Concentrated |
Freight & Logistics 30 stocks | 3.7% $264.76B | Lagging -12.9% median 3M | Cheap 23.1x median Fwd P/E | Mixed 7.0% median ROE | Weak 3.8% rev growth | Broken Concentrated |
Industrial Distribution 19 stocks | 3.3% $238.35B | Leading +2.5% median 3M | Premium 27.4x median Fwd P/E | Mixed 20.1% median ROE | Weak 7.8% rev growth | Expensive Leader Concentrated |
Airlines & Airports 29 stocks | 3.2% $231.34B | Neutral -16.6% median 3M | Cheap 12.9x median Fwd P/E | Mixed 15.0% median ROE | Weak 6.6% rev growth | Mixed Diversified |
Waste Management 20 stocks | 3.2% $227.63B | Neutral -7.8% median 3M | Premium 29.5x median Fwd P/E | Mixed 0.3% median ROE | Strong 4.1% rev growth | Mixed One-name heavy |
Business Services 43 stocks | 3.1% $223.71B | Neutral -6.1% median 3M | Fair 19.1x median Fwd P/E | Mixed 3.6% median ROE | Strong 8.7% rev growth | Watchlist Concentrated |
Conglomerates 19 stocks | 2.6% $185.92B | Neutral -7.2% median 3M | Fair 18.9x median Fwd P/E | Mixed 4.7% median ROE | Strong 5.1% rev growth | Watchlist One-name heavy |
Rental & Leasing 24 stocks | 2.4% $171.45B | Neutral -4.3% median 3M | Cheap 17.6x median Fwd P/E | Mixed 10.8% median ROE | Weak 3.2% rev growth | Mixed Concentrated |
Staffing & HR 27 stocks | 2.4% $168.36B | Leading 0.0% median 3M | Fair 17.6x median Fwd P/E | Weak 3.7% median ROE | Weak 0.4% rev growth | Mixed One-name heavy |
Tools & Accessories 11 stocks | 1.2% $85.83B | Neutral -9.8% median 3M | Fair 19.0x median Fwd P/E | High 7.7% median ROE | Average 6.0% rev growth | Watchlist Diversified |
Trucking 18 stocks | 1.2% $84.56B | Neutral -18.2% median 3M | Premium 28.7x median Fwd P/E | Weak 0.6% median ROE | Weak 4.5% rev growth | Mixed Concentrated |
Metal Fabrication 21 stocks | 1.1% $79.66B | Neutral -8.4% median 3M | Fair 19.1x median Fwd P/E | Mixed 7.5% median ROE | Strong 7.1% rev growth | Watchlist Concentrated |
Consulting Services 23 stocks | 1.0% $72.74B | Neutral -3.0% median 3M | Fair 15.7x median Fwd P/E | High 15.1% median ROE | Average 5.0% rev growth | Watchlist Concentrated |
Marine Shipping 46 stocks | 0.9% $61.53B | Leading +13.7% median 3M | Cheap 7.1x median Fwd P/E | High 10.2% median ROE | Strong 12.2% rev growth | Attractive Diversified |
Environmental Services 16 stocks | 0.7% $48.42B | Neutral -11.7% median 3M | Premium 24.4x median Fwd P/E | Mixed -3.6% median ROE | Strong 11.4% rev growth | Mixed One-name heavy |
Security Services 26 stocks | 0.7% $46.93B | Lagging -6.5% median 3M | Fair 16.7x median Fwd P/E | Mixed 1.9% median ROE | Average 6.0% rev growth | Mixed Concentrated |
Infrastructure Operations 2 stocks | 0.6% $44.29B | Neutral -11.9% median 3M | Premium 44.3x median Fwd P/E | High 15.1% median ROE | Strong 15.7% rev growth | Mixed One-name heavy |
Midstream Oil & Gas 1 stocks | 0.3% $20.29B | Lagging -13.7% median 3M | Cheap 6.1x median Fwd P/E | Mixed 5.3% median ROE | Weak 6.7% rev growth | Broken One-name heavy |
Business Equipment 7 stocks | 0.3% $19.12B | Neutral +6.4% median 3M | Cheap 14.1x median Fwd P/E | Mixed 9.1% median ROE | Weak 3.1% rev growth | Mixed One-name heavy |
Transportation 1 stocks | 0.0% $877M | Neutral -3.2% median 3M | Fair 15.9x median Fwd P/E | Weak 2.3% median ROE | Average - rev growth | Mixed One-name heavy |
Textiles 1 stocks | 0.0% $417M | Neutral -7.7% median 3M | Cheap 14.8x median Fwd P/E | Weak -10.8% median ROE | Strong 21.8% rev growth | Attractive One-name heavy |
Industrial Specialties 2 stocks | 0.0% $2M | Neutral 0.0% median 3M | Fair - median Fwd P/E | Mixed - median ROE | Average - rev growth | Mixed One-name heavy |
Auto Parts & Equipment 1 stocks | 0.0% $2M | Leading +5.2% median 3M | Fair - median Fwd P/E | Weak -152.3% median ROE | Strong - rev growth | Watchlist One-name heavy |
Showing 29 of 29 industries in Industrials.
Setup is a quick read of value, quality, growth, momentum, and concentration together.
Earnings Calendar
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.