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 2.9% has fallen short of the S&P 500’s 13.5% rise.
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 are two resilient industrials stocks at the top of our wish list and one we would avoid.
One Industrials Stock to Sell:
Simpson (SSD)
Market Cap: $8.19 billion
Aiming to build safer and stronger buildings, Simpson (NYSE: SSD) designs and manufactures structural connectors, anchors, and other construction products.
Why Does SSD Fall Short?
- Sales trends were unexciting over the last two years as its 4.7% annual growth was below the typical industrials company
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 4.7 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Simpson’s stock price of $199.87 implies a valuation ratio of 21.3x forward P/E. To fully understand why you should be careful with SSD, check out our full research report (it’s free).
Two Industrials Stocks to Buy:
Blue Bird (BLBD)
Market Cap: $2.10 billion
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
What Makes BLBD Stand Out?
- Unit sales averaged 9.2% growth over the past two years and imply healthy demand for its products
- Free cash flow margin jumped by 23.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are growing as management capitalizes on its market opportunities
At $66.20 per share, Blue Bird trades at 13.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Tutor Perini (TPC)
Market Cap: $5.13 billion
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Are We Bullish on TPC?
- Market share has increased this cycle as its 18.2% annual revenue growth over the last two years was exceptional
- Free cash flow margin increased by 7.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Historical investments are beginning to pay off as its returns on capital are growing
Tutor Perini is trading at $97.47 per share, or 18.7x forward P/E. 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
