Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 6.4% over the past six months. This drop is a stark contrast from the S&P 500’s 13.5% gain.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient industrials stock at the top of our wish list and two we’re steering clear of.
Two Industrials Stocks to Sell:
Titan International (TWI)
Market Cap: $442.1 million
Acquiring Goodyear’s farm tire business in 2005, Titan (NYSE: TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Why Should You Sell TWI?
- 1.7% annual revenue growth over the last two years was slower than its industrials peers
- Eroding returns on capital suggest its historical profit centers are aging
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Titan International is trading at $6.86 per share, or 8.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TWI.
Generac (GNRC)
Market Cap: $12.9 billion
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE: GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Do We Think Twice About GNRC?
- Sales trends were unexciting over the last two years as its 5.1% annual growth was below the typical industrials company
- Efficiency has decreased over the last five years as its operating margin fell by 6.7 percentage points
- Earnings per share have contracted by 1.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
At $216.72 per share, Generac trades at 21.7x forward P/E. To fully understand why you should be careful with GNRC, check out our full research report (it’s free).
One Industrials Stock to Buy:
Rocket Lab (RKLB)
Market Cap: $39.32 billion
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ: RKLB) offers rockets designed for launching small satellites.
Why Is RKLB a Top Pick?
- Annual revenue growth of 53.4% over the last two years was superb and indicates its market share increased during this cycle
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
- Historical investments are beginning to pay off as its returns on capital are growing
Rocket Lab’s stock price of $65.26 implies a valuation ratio of 3,235.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
