Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 2.7% has trailed the S&P 500’s 18.4% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two resilient industrials stocks at the top of our wish list and one we’re steering clear of.
One Industrials Stock to Sell:
Timken (TKR)
Market Cap: $8.15 billion
Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE:TKR) is a provider of industrial parts used across various sectors.
Why Are We Bearish on TKR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $117.66 per share, Timken trades at 17.6x forward P/E. Dive into our free research report to see why there are better opportunities than TKR.
Two Industrials Stocks to Watch:
Cadre (CDRE)
Market Cap: $1.14 billion
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Could CDRE Be a Winner?
- Annual revenue growth of 13.5% over the past two years was outstanding, reflecting market share gains this cycle
- Operating margin expanded by 6.7 percentage points over the last five years as it scaled and became more efficient
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 40.8% annually
Cadre is trading at $26.72 per share, or 18.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Astronics (ATRO)
Market Cap: $2.97 billion
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Do We Love ATRO?
- Annual revenue growth of 16.5% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 10.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
Astronics’s stock price of $69.47 implies a valuation ratio of 23.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.