Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 19.9% for the sector - higher than the S&P 500’s 8.5% return.
Nevertheless, investors must be mindful as the cycle can unexpectedly turn. When this inevitably happens, only the elite companies will survive and ultimately thrive. Keeping that in mind, here are two resilient industrials stocks at the top of our wish list and one best left ignored.
One Industrials Stock to Sell:
Crown Holdings (CCK)
Market Cap: $10.79 billion
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Why Are We Cautious About CCK?
- The company has faced growth challenges as its 1.4% annual revenue increases over the last five years fell short of other industrials companies
- High input costs result in an inferior gross margin of 20.3% that must be offset through higher volumes
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.8% annually
Crown Holdings’s stock price of $103.16 implies a valuation ratio of 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than CCK.
Two Industrials Stocks to Watch:
Distribution Solutions (DSGR)
Market Cap: $1.28 billion
Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.
Why Could DSGR Be a Winner?
- Impressive 38.1% annual revenue growth over the last four years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 14% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 5.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Distribution Solutions is trading at $28.25 per share, or 19.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Astronics (ATRO)
Market Cap: $3.39 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 Will ATRO Beat the Market?
- Impressive 14.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 349% outpaced its revenue gains
- Historical investments are beginning to pay off as its returns on capital are growing
At $80.87 per share, Astronics trades at 28.4x 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
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
