Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. 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 3.7% for the sector. Investing here would have been wise - at the same time, the S&P 500 was down 5.5%.
Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. With that said, here is one resilient industrials stock at the top of our wish list and two we’re swiping left on.
Two Industrials Stocks to Sell:
Vishay Precision (VPG)
Market Cap: $577.4 million
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Is VPG Risky?
- Annual sales declines of 7% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 16.2% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Vishay Precision’s stock price of $42.70 implies a valuation ratio of 51.5x forward P/E. If you’re considering VPG for your portfolio, see our FREE research report to learn more.
Toll Brothers (TOL)
Market Cap: $12.93 billion
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE: TOL) is a luxury homebuilder across the United States.
Why Are We Hesitant About TOL?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 9.4% declines over the past two years
- Projected sales decline of 6.5% for the next 12 months points to a tough demand environment ahead
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.6% annually
Toll Brothers is trading at $136.10 per share, or 10.3x forward P/E. To fully understand why you should be careful with TOL, check out our full research report (it’s free).
One Industrials Stock to Watch:
FTAI Infrastructure (FIP)
Market Cap: $583.7 million
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Could FIP Be a Winner?
- Annual revenue growth of 25.2% over the last two years was superb and indicates its market share increased during 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 56.6%
At $5.01 per share, FTAI Infrastructure trades at 15.2x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
