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1 Industrials Stock with Solid Fundamentals and 2 We Turn Down

By: StockStory

October 06, 2025 at 00:40 AM EDT

TGLS Cover Image

Whether you see them or not, industrials businesses play a crucial part in our daily activities. But their prominence also brings high exposure to the ups and downs of economic cycles. Luckily, the tide is turning in their favor as the industry’s 45.4% return over the past six months has topped the S&P 500 by 12.7 percentage points.

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 is one industrials stock boasting a durable advantage and two best left ignored.

Two Industrials Stocks to Sell:

Arrow Electronics (ARW)

Market Cap: $6.26 billion

Founded as a single retail store, Arrow Electronics (NYSE: ARW) provides electronic components and enterprise computing solutions to businesses globally.

Why Do We Steer Clear of ARW?

Customers postponed purchases of its products and services this cycle as its revenue declined by 10.8% annually over the last two years
Sales were less profitable over the last two years as its earnings per share fell by 32.9% annually, worse than its revenue declines
Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Arrow Electronics’s stock price of $121.59 implies a valuation ratio of 4.9x forward EV-to-EBITDA. If you’re considering ARW for your portfolio, see our FREE research report to learn more.

EVgo (EVGO)

Market Cap: $670.8 million

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Are We Cautious About EVGO?

Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Negative free cash flow raises questions about the return timeline for its investments
Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $4.99 per share, EVgo trades at 22.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why EVGO doesn’t pass our bar.

One Industrials Stock to Watch:

Tecnoglass (TGLS)

Market Cap: $3.11 billion

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Why Are We Fans of TGLS?

Annual revenue growth of 20.3% over the past five years was outstanding, reflecting market share gains this cycle
Highly efficient business model is illustrated by its impressive 27.3% operating margin, and its operating leverage amplified its profits over the last five years
ROIC punches in at 28.9%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

Tecnoglass is trading at $66.19 per share, or 14.7x 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.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Symbol	Price	Change (%)
AMZN	226.66	-3.64 (-1.58%)
AAPL	269.45	-0.25 (-0.09%)
AMD	258.40	-5.93 (-2.24%)
BAC	53.06	+0.48 (0.92%)
GOOG	289.36	+14.19 (5.16%)
META	661.46	-90.21 (-12.00%)
MSFT	528.24	-13.31 (-2.46%)
NVDA	202.31	-4.73 (-2.29%)
ORCL	265.38	-9.92 (-3.60%)
TSLA	444.56	-16.95 (-3.67%)

Symbol

Price

Change (%)

AMZN

226.66

-3.64 (-1.58%)

AAPL

269.45

-0.25 (-0.09%)

AMD

258.40

-5.93 (-2.24%)

BAC

53.06

+0.48 (0.92%)

GOOG

289.36

+14.19 (5.16%)

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