Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Their momentum is also rising as lower interest rates have incentivized higher capital spending, and as a result, the industry has posted a six-month gain of 3.9%. This was a good place to be as the S&P 500 shed 2.1% of its value.
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. Taking that into account, here is one industrials stock poised to generate sustainable market-beating returns and two we’re swiping left on.
Two Industrials Stocks to Sell:
Concrete Pumping (BBCP)
Market Cap: $352.6 million
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Is BBCP Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.7% annually over the last two years
- Anticipated sales growth of 2.4% for the next year implies demand will be shaky
- Earnings per share have dipped by 47.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $6.98 per share, Concrete Pumping trades at 46.9x forward P/E. Check out our free in-depth research report to learn more about why BBCP doesn’t pass our bar.
Carrier Global (CARR)
Market Cap: $46.54 billion
Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Why Do We Steer Clear of CARR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.8% annually while its revenue grew
- Eroding returns on capital suggest its historical profit centers are aging
Carrier Global’s stock price of $56.85 implies a valuation ratio of 20.5x forward P/E. To fully understand why you should be careful with CARR, check out our full research report (it’s free).
One Industrials Stock to Buy:
Curtiss-Wright (CW)
Market Cap: $25.65 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 Is CW a Good Business?
- Annual revenue growth of 10.9% over the past two years was outstanding, reflecting market share gains this cycle
- Excellent operating margin of 16.9% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
- Share buybacks catapulted its annual earnings per share growth to 18.8%, which outperformed its revenue gains over the last two years
Curtiss-Wright is trading at $694.82 per share, or 46.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
