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MYRG (©StockStory)

1 Momentum Industrials Stock with Exciting Potential and 2 Facing Headwinds


Adam Hejl /
2026/02/08 11:35 pm EST

The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with lasting competitive advantages and two best left ignored.

Two Industrials Stocks to Sell:

MYR Group (MYRG)

One-Month Return: +21.1%

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.

Why Does MYRG Fall Short?

  1. Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy
  2. Gross margin of 10.8% reflects its high production costs
  3. Eroding returns on capital suggest its historical profit centers are aging

At $269.29 per share, MYR Group trades at 29.4x forward P/E. If you’re considering MYRG for your portfolio, see our FREE research report to learn more.

Nordson (NDSN)

One-Month Return: +11.3%

Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Why Does NDSN Worry Us?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Earnings per share lagged its peers over the last two years as they only grew by 2% annually
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Nordson is trading at $290.62 per share, or 25x forward P/E. Dive into our free research report to see why there are better opportunities than NDSN.

One Industrials Stock to Buy:

Mueller Water Products (MWA)

One-Month Return: +14.8%

As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.

Why Should You Buy MWA?

  1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 9.2% over the past two years
  2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 45.2% over the last two years outstripped its revenue performance

Mueller Water Products’s stock price of $28.98 implies a valuation ratio of 19x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.