Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. 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 23.9% return over the past six months has topped the S&P 500 by 8.1 percentage points.
Nevertheless, investors must be mindful as the cycle can unexpectedly turn. When this inevitably happens, only the elite companies will survive and ultimately thrive. With that said, here are two industrials stocks boasting durable advantages and one we’re swiping left on.
One Industrials Stock to Sell:
Byrna (BYRN)
Market Cap: $459.5 million
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Why Are We Cautious About BYRN?
- Historical operating margin losses point to an inefficient cost structure
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Byrna’s stock price of $20.24 implies a valuation ratio of 46x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BYRN doesn’t pass our bar.
Two Industrials Stocks to Watch:
CSW (CSW)
Market Cap: $4.48 billion
With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.
Why Are We Bullish on CSW?
- Impressive 19.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Additional sales over the last five years increased its profitability as the 25.9% annual growth in its earnings per share outpaced its revenue
- Strong free cash flow margin of 15.5% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
CSW is trading at $266.57 per share, or 26.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Hubbell (HUBB)
Market Cap: $23.2 billion
A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Why Are We Fans of HUBB?
- Operating margin improvement of 7 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases over the last five years enabled its annual earnings per share growth of 17% to outpace its revenue gains
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities
At $436.70 per share, Hubbell trades at 23.9x 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
When Trump unveiled his aggressive tariff plan in April 2025, 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).
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