Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates. Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 4.1%.

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 best left ignored.

Two IndustrialsStocks to Sell:

Waste Management (WM)

Market Cap: $91.48 billion

Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.

Why Does WM Give Us Pause?

1. Sizable revenue base leads to growth challenges as its 7.2% annual revenue increases over the last two years fell short of other industrials companies
2. 6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Waste Management’s stock price of $227.33 implies a valuation ratio of 29.4x forward P/E. Read our free research report to see why you should think twice about including WM in your portfolio.

Mercury Systems (MRCY)

Market Cap: $3.09 billion

Founded in 1981, Mercury Systems (NASDAQ: MRCY) specializes in providing processing subsystems and components for primarily defense applications.

Why Should You Dump MRCY?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 28% annually
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $52.03 per share, Mercury Systems trades at 73.6x forward P/E. Check out our free in-depth research report to learn more about why MRCY doesn’t pass our bar.

One Industrials Stock to Buy:

GE Aerospace (GE)

Market Cap: $279.2 billion

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Are We Bullish on GE?

1. Annual revenue growth of 16.1% over the last two years was superb and indicates its market share increased during this cycle
2. GE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Improving returns on capital reflect management’s ability to monetize investments

GE Aerospace is trading at $263.73 per share, or 44.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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

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