Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 2.7% has fallen short of the S&P 500’s 5.4% rise.

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 are two resilient industrials stocks at the top of our wish list and one best left ignored.

One IndustrialsStock to Sell:

Heartland Express (HTLD)

Market Cap: $710.9 million

Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.

Why Do We Think HTLD Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last two years
2. Free cash flow margin shrank by 10.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Heartland Express’s stock price of $9.05 implies a valuation ratio of 4.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why HTLD doesn’t pass our bar.

Two Industrials Stocks to Watch:

AZZ (AZZ)

Market Cap: $3.20 billion

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

Why Does AZZ Stand Out?

1. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 14.7%, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 24.5% outpaced its revenue gains
3. Free cash flow margin expanded by 13.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $106.78 per share, AZZ trades at 17.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Trane Technologies (TT)

Market Cap: $97.95 billion

With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Will TT Outperform?

1. Annual revenue growth of 11.6% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 23.7%, which outperformed its revenue gains over the last two years
3. Industry-leading 22.9% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets

Trane Technologies is trading at $438.75 per share, or 33.6x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 5 Growth Stocks for this month. 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

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