1 Industrials Stock with Promising Prospects and 2 Facing Headwinds
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 4.5% has fallen short of the S&P 500’s 14% rise.
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 is one resilient industrials stock at the top of our wish list and two we’re steering clear of.
Two Industrials Stocks to Sell:
Fluence Energy (FLNC)
Market Cap: $1.10 billion
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Why Does FLNC Fall Short?
- Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
Fluence Energy’s stock price of $7.68 implies a valuation ratio of 0.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FLNC.
Autoliv (ALV)
Market Cap: $8.60 billion
With products estimated to save over 30,000 lives annually in traffic accidents worldwide, Autoliv (NYSE:ALV) develops and manufactures passive safety systems for vehicles, including airbags, seatbelts, and steering wheels that protect occupants during crashes.
Why Do We Think Twice About ALV?
- Annual sales growth of 2.4% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.3%
- Gross margin of 17.8% is below its competitors, leaving less money to invest in areas like marketing and R&D
Autoliv is trading at $117.53 per share, or 10.7x forward P/E. Read our free research report to see why you should think twice about including ALV in your portfolio.
One Industrials Stock to Watch:
Redwire (RDW)
Market Cap: $2.88 billion
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Why Are We Positive on RDW?
- Annual revenue growth of 20.8% over the last two years was superb and indicates its market share increased during this cycle
- Market share will likely rise over the next 12 months as its expected revenue growth of 20.6% is robust
- Historical investments are beginning to pay off as its returns on capital are growing
At $11.56 per share, Redwire trades at 4.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.