Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates. Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 11.7%.
Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here is one resilient industrials stock at the top of our wish list and two we’re passing on.
Two Industrials Stocks to Sell:
Ball (BALL)
Market Cap: $16.57 billion
Started with a $200 loan in 1880, Ball (NYSE: BALL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Does BALL Worry Us?
- Annual sales growth of 2.3% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Gross margin of 21.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Ball’s stock price of $62.54 implies a valuation ratio of 15.1x forward P/E. Dive into our free research report to see why there are better opportunities than BALL.
Avery Dennison (AVY)
Market Cap: $13.52 billion
Founded as Kum Kleen Products, Avery Dennison (NYSE: AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Why Are We Wary of AVY?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales growth of 2.4% for the next 12 months suggests sluggish demand
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.9% annually
Avery Dennison is trading at $178.04 per share, or 16.9x forward P/E. Check out our free in-depth research report to learn more about why AVY doesn’t pass our bar.
One Industrials Stock to Buy:
FTAI Aviation (FTAI)
Market Cap: $22.08 billion
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Is FTAI a Top Pick?
- Market share has increased this cycle as its 50.5% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 35.1% annually over the last two years, massively outpacing its peers
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
At $215.98 per share, FTAI Aviation trades at 15x forward EV-to-EBITDA. 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.
