Whether you see them or not, industrials businesses play a crucial part in our daily activities. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 5% for the sector - higher than the S&P 500’s 1.3% return.
Nevertheless, investors must be mindful as the cycle can unexpectedly turn. When this inevitably happens, only the elite companies will survive and ultimately thrive. Taking that into account, here are two industrials stocks we think can generate sustainable market-beating returns and one we’re steering clear of.
One Industrials Stock to Sell:
Nordson (NDSN)
Market Cap: $15.12 billion
Founded in 1954, Nordson Corporation (NASDAQ: NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Why Do We Think Twice About NDSN?
- 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 4.7% for the next 12 months suggests sluggish demand
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $271.03 per share, Nordson trades at 23.4x forward P/E. If you’re considering NDSN for your portfolio, see our FREE research report to learn more.
Two Industrials Stocks to Buy:
FTAI Aviation (FTAI)
Market Cap: $24.27 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 46.3% annual revenue growth over the last two years was exceptional
- Earnings per share have massively outperformed its peers over the last two years, increasing by 43.8% annually
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
FTAI Aviation’s stock price of $243.87 implies a valuation ratio of 32.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
American Superconductor (AMSC)
Market Cap: $1.48 billion
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Are We Backing AMSC?
- Annual revenue growth of 43.7% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
American Superconductor is trading at $31.63 per share, or 33.4x forward P/E. Is now a good 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
