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%.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here are two industrials stocks we think can generate sustainable market-beating returns and one we’re swiping left on.

One IndustrialsStock to Sell:

Belden (BDC)

Market Cap: $5.17 billion

With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.

Why Does BDC Worry Us?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.7% annually over the last two years
2. Projected sales growth of 4.8% for the next 12 months suggests sluggish demand
3. Flat earnings per share over the last two years lagged its peers

Belden is trading at $130.81 per share, or 18x forward P/E. Dive into our free research report to see why there are better opportunities than BDC.

Two Industrials Stocks to Watch:

AeroVironment (AVAV)

Market Cap: $13.7 billion

Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.

Why Is AVAV Interesting?

1. Market share has increased this cycle as its 23.2% annual revenue growth over the last two years was exceptional
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 144%
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 63.4% annually

AeroVironment’s stock price of $280.10 implies a valuation ratio of 72x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Primoris (PRIM)

Market Cap: $4.72 billion

Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Could PRIM Be a Winner?

1. Annual revenue growth of 16.2% over the last two years was superb and indicates its market share increased during this cycle
2. Sales pipeline is in good shape as its backlog averaged 148% growth over the past two years
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 27% annually

At $87.35 per share, Primoris trades at 19.5x forward P/E. Is now the time to initiate a position? See for yourself 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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