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 market seems to be baking in a prolonged downturn as the industry has shed 6.9% over the past six months. This performance was worse than the S&P 500’s 1.6% decline.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one resilient industrials stock at the top of our wish list and two we’re passing on.
Two IndustrialsStocks to Sell:
Tutor Perini (TPC)
Market Cap: $2.22 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 Is TPC Not Exciting?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- High input costs result in an inferior gross margin of 6.1% that must be offset through higher volumes
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Tutor Perini is trading at $42.08 per share, or 20.2x forward P/E. To fully understand why you should be careful with TPC, check out our full research report (it’s free).
Crane (CR)
Market Cap: $10.43 billion
Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Do We Steer Clear of CR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Anticipated sales growth of 6.3% for the next year implies demand will be shaky
- Earnings per share have dipped by 1.4% annually over the past five years, which is concerning because stock prices follow EPS over the long term
At $181.44 per share, Crane trades at 32x forward P/E. If you’re considering CR for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Watch:
Dycom (DY)
Market Cap: $6.74 billion
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Does DY Stand Out?
- Annual revenue growth of 10.1% over the last two years beat the sector average and underscores the unique value of its offerings
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 13.8%
- Share repurchases over the last five years enabled its annual earnings per share growth of 27.2% to outpace its revenue gains
Dycom’s stock price of $233.15 implies a valuation ratio of 24.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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