Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. 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 11.2% over the past six months. This drawdown was worse than the S&P 500’s 2.5% loss.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are three industrials stocks we think can generate sustainable market-beating returns.

Chart (GTLS)

Market Cap: $7.25 billion

Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.

Why Is GTLS a Top Pick?

1. Demand is greater than supply as the company’s 41.6% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Operating margin improvement of 7.3 percentage points over the last five years demonstrates its ability to scale efficiently
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 28.7% annually

At $161.40 per share, Chart trades at 12.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Thermon (THR)

Market Cap: $852.4 million

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Why Does THR Stand Out?

1. Offerings are mission-critical for businesses and result in a top-tier gross margin of 42.8%
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Additional sales over the last five years increased its profitability as the 20.8% annual growth in its earnings per share outpaced its revenue

Thermon’s stock price of $25.75 implies a valuation ratio of 12.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Distribution Solutions (DSGR)

Market Cap: $1.30 billion

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Do We Love DSGR?

1. Annual revenue growth of 17.8% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 24.9% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin increased by 3.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Distribution Solutions is trading at $28.01 per share, or 16.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.