Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the industry has underperformed the market over the past six months as its 2.6% return lagged the S&P 500 by 1.9 percentage points.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient industrials stock at the top of our wish list and two that may face trouble.

Two IndustrialsStocks to Sell:

THOR Industries (THO)

Market Cap: $4.77 billion

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

Why Should You Sell THO?

1. Sales tumbled by 11.4% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share have contracted by 36.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

THOR Industries is trading at $89.69 per share, or 18.4x forward P/E. Check out our free in-depth research report to learn more about why THO doesn’t pass our bar.

Tri Pointe Homes (TPH)

Market Cap: $2.90 billion

Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Why Are We Out on TPH?

1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 6.9% declines over the past two years
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.8 percentage points

Tri Pointe Homes’s stock price of $31.96 implies a valuation ratio of 10.3x forward P/E. To fully understand why you should be careful with TPH, check out our full research report (it’s free).

One Industrials Stock to Buy:

Blue Bird (BLBD)

Market Cap: $1.36 billion

With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.

Why Is BLBD a Good Business?

1. Annual revenue growth of 16.5% over the past two years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last two years increased its profitability as the 156% annual growth in its earnings per share outpaced its revenue
3. Rising returns on capital show management is finding more attractive investment opportunities

At $43.12 per share, Blue Bird trades at 10.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 Kadant (+351% 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