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 19.6% for the sector - higher than the S&P 500’s 15.3% return.

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 are three industrials stocks we think can generate sustainable market-beating returns.

Federal Signal (FSS)

Market Cap: $6.75 billion

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE: FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Why Are We Backing FSS?

1. Annual revenue growth of 12.3% over the last five years was superb and indicates its market share increased during this cycle
2. Market share is on track to rise over the next 12 months as its 15.4% projected revenue growth implies demand will accelerate from its two-year trend
3. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.9% outpaced its revenue gains

At $110.92 per share, Federal Signal trades at 24.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

FTAI Aviation (FTAI)

Market Cap: $18.04 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 Do We Love FTAI?

1. Impressive 43.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 82.4% over the last two years outstripped its revenue performance
3. 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 $175.20 implies a valuation ratio of 28.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Astronics (ATRO)

Market Cap: $1.83 billion

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Why Should You Buy ATRO?

1. Annual revenue growth of 12.9% over the last two years was superb and indicates its market share increased during this cycle
2. Free cash flow margin expanded by 10.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Historical investments are beginning to pay off as its returns on capital are growing

Astronics is trading at $50.97 per share, or 22.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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