Whether you see them or not, industrials businesses play a crucial part in our daily activities. Their momentum is also rising as lower interest rates have incentivized higher capital spending. As a result, the industry has posted a 18.2% gain over the past six months, beating the S&P 500 by 5.2 percentage points.
Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. With that said, here is one industrials stock poised to generate sustainable market-beating returns and two best left ignored.
Two Industrials Stocks to Sell:
WillScot Mobile Mini (WSC)
Market Cap: $3.35 billion
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Does WSC Give Us Pause?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Forecasted revenue decline of 5.1% for the upcoming 12 months implies demand will fall off a cliff
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $18.43 per share, WillScot Mobile Mini trades at 17.9x forward P/E. Read our free research report to see why you should think twice about including WSC in your portfolio.
Transcat (TRNS)
Market Cap: $562.4 million
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.
Why Are We Cautious About TRNS?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 2.5 percentage points
- Annual earnings per share growth of 2.7% underperformed its revenue over the last two years, partly because it diluted shareholders
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Transcat’s stock price of $60.32 implies a valuation ratio of 28.9x forward P/E. If you’re considering TRNS for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Buy:
Curtiss-Wright (CW)
Market Cap: $20.04 billion
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Should You Buy CW?
- Annual revenue growth of 9.5% over the last two years beat the sector average and underscores the unique value of its offerings
- Excellent operating margin of 16.5% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Curtiss-Wright is trading at $542.20 per share, or 38.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.