3 Industrials Stocks on Our Watchlist
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 7.2% over the past six months. This drop is a noticeable divergence from the S&P 500’s 12% return.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are three industrials stocks boasting durable advantages.
LSI (LYTS)
Market Cap: $765.5 million
Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.
Why Will LYTS Outperform?
- Impressive 21.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last five years increased its profitability as the 30.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
LSI is trading at $21.16 per share, or 15.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Belden (BDC)
Market Cap: $4.24 billion
With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE:BDC) designs, manufactures, and sells electronic components to various industries.
Why Do We Like BDC?
- Annual revenue growth of 11.2% over the past two years was outstanding, reflecting market share gains this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 34.4%
- Share repurchases over the last two years enabled its annual earnings per share growth of 16.7% to outpace its revenue gains
At $108.45 per share, Belden trades at 11.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
JBT Marel (JBTM)
Market Cap: $5.51 billion
Tracing back to its invention of the mechanical milk bottle filler in 1884, JBT Marel (NYSE:JBTM) designs, manufactures, and sells equipment used for food processing and aviation.
Why Does JBTM Stand Out?
- Impressive 54.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Healthy unit economics are reflected in its 35.4% gross margin and give it more money to invest in marketing and R&D
- Earnings per share grew by 30% annually over the last two years and trumped its peers
JBT Marel’s stock price of $106.76 implies a valuation ratio of 12.5x 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
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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.