Industrial Stocks: What Drives Them, What To Check
Updated October 31, 2026. 94 stocks in the group.
On October 31, 2026, this site tracks 94 industrial stocks with a combined market value of $6.11T, about 8.8% of the 503 stocks it covers. Their median P/E is 27.5 against 23.5 for all tracked stocks, and 81 stocks pay a dividend. The largest are GE, CAT, RTX and GEV. This page shows what the data says about the group and what drives it; it does not say which stock to pick.
What is in the Industrials group?
94 stocks in 12 industries.
| Industry | Stocks | Combined market value | Median P/E | Largest |
|---|---|---|---|---|
| Electrical Equipment | 19 | $1.36T | 34.9 | GEV |
| Aerospace & Defense | 12 | $1.32T | 25.3 | GE |
| Machinery | 17 | $1.01T | 26.8 | CAT |
| Road & Rail | 7 | $558B | 28.6 | UNP |
| Commercial Services & Supplies | 6 | $307B | 29.3 | WM |
| Construction | 6 | $304B | 23.8 | PWR |
| Building | 7 | $277B | 22.8 | JCI |
| Professional Services | 7 | $261B | 25.8 | ADP |
| Trading Companies & Distributors | 4 | $245B | 30.3 | URI |
| Logistics & Transportation | 4 | $206B | 21.3 | UPS |
| Industrial Conglomerates | 2 | $160B | 17.7 | MMM |
| Airlines | 3 | $107B | 16.1 | DAL |
The group follows this site's twelve-sector grouping, shown on the Sector Map. It covers aerospace and defense, machinery, electrical equipment, building products, construction, transport, logistics and business services. The industry names are the narrow labels in the site's own company data. Market values and P/E come from the weekly screener data as of October 31, 2026.
How do industrial stocks compare with the whole market?
Medians for the group against all tracked stocks.
| Measure | Industrials | All tracked stocks | The group is |
|---|---|---|---|
| Median P/E | 27.5 | 23.5 | above |
| Median price to book | 6.38 | 4.33 | above |
| Median dividend yield (payers) | 1.17% | 1.91% | below |
| Median net margin | 12.8% | 13.1% | below |
| Median return on equity | 23.2% | 17.4% | above |
| Median debt to equity | 0.72 | 0.76 | below |
Medians ignore stocks with no figure, so a loss-maker has no P/E. On P/E the group sits 17% above the market median. A higher P/E means investors pay more per dollar of profit, often because they expect faster growth; it is not a score. See the P/E glossary entry.
Which industrial stocks lead on size, price, yield and returns?
Four short lists from the same data.
| Stock | Market value |
|---|---|
| GE General Electric Co | $320B |
| CAT Caterpillar Inc | $291B |
| RTX RTX Corp | $269B |
| GEV GE Vernova Inc | $227B |
| APH Amphenol Corp | $196B |
| Stock | P/E |
|---|---|
| UAL United Airlines Holdings Inc | 9.4 |
| HON Honeywell International Inc | 9.8 |
| LDOS Leidos Holdings Inc | 13.2 |
| UBER Uber Technologies Inc | 13.9 |
| LII Lennox International Inc | 14.9 |
A low P/E can mean a bargain or a business in trouble, and a high yield can be a price that has fallen; check the cause before reading either as good news (why a low P/E can be an illusion). Return on equity is flattered by debt and buybacks.
How healthy are industrial businesses on Piotroski's nine tests?
Nine yes/no tests on profit, debt and efficiency, run on each company's own 10-K.
| Band | Stocks | Share of the group |
|---|---|---|
| Strong (8 or 9) | 21 | 23% |
| Good (6 or 7) | 51 | 55% |
| Middling (4 or 5) | 20 | 22% |
| Weak (0 to 3) | 0 | 0% |
| Stock | F-Score |
|---|---|
| PH Parker-Hannifin Corp | 9 of 9 |
| PNR Pentair PLC | 9 of 9 |
| RTX RTX Corp | 8 of 9 |
| UNP Union Pacific Corp | 8 of 9 |
| ADP Automatic Data Processing Inc | 8 of 9 |
The median score is 6.5 for the group against 6.0 for all scored non-financial stocks. A score describes the last two annual reports, not the share price. Browse every score on the Piotroski F-Score Screener.
What drives industrial stocks?
The forces behind the group's profits.
Capital spending and orders
Industrial companies sell to other businesses, so their sales follow what those businesses decide to spend on plants, fleets, power and equipment. Order books and backlog show demand months before it reaches revenue, which is why analysts watch book-to-bill ratios (new orders against sales) and purchasing-manager surveys.
Aftermarket and service income
A machine or an aircraft engine is sold once and serviced for decades. Parts, maintenance and software contracts earn higher margins than the original sale and hold up better when new orders fall, so the share of revenue that recurs is one of the first things to look for.
Pricing against input costs
Steel, copper, labour and freight costs move faster than most contracts. A company with pricing power passes them on; one with fixed-price contracts absorbs them. Operating margin over several years shows which kind it is.
Defense budgets, infrastructure and power demand
Governments are large, slow and steady buyers of aircraft, vehicles and construction. Demand for electrical and cooling equipment tied to data-center and grid build-outs is a newer driver that now shows up in some order books.
What can go wrong with industrial stocks?
The risks to read in the filings.
- Cycles: orders can fall quickly in a slowdown while fixed costs stay.
- Project risk: fixed-price contracts that overrun turn into losses.
- Trade and input costs: tariffs and commodity swings change margins.
- Working capital: growing backlogs can tie up cash before it is collected.
What to check: Check the order backlog trend, the share of recurring service revenue, operating margin through the last downturn and debt against cash flow.
Which tools and guides fit industrial stocks?
Where to go next on this site.
Which industrial stocks does this site track?
Every stock in the group, by industry, each linked to its own page.
Electrical Equipment (19)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| GEV GE Vernova Inc | $227B | 21.9 | 0.21% | 85.6% |
| APH Amphenol Corp | $196B | 33.0 | 0.57% | 39.5% |
| ETN Eaton Corporation PLC | $148B | 38.6 | 1.13% | 19.6% |
| GLW Corning Inc | $108B | 50.4 | 0.93% | 17.3% |
| EMR Emerson Electric Co | $94.5B | 36.7 | 1.30% | 12.7% |
| VRT Vertiv Holdings Co | $94.2B | 44.9 | 0.10% | 45.5% |
| TEL TE Connectivity PLC | $63.4B | 21.0 | 1.34% | 23.2% |
| BE Bloom Energy Corp | $59.0B | 113.9 | 0.00% | 39.6% |
| KEYS Keysight Technologies Inc | $56.2B | 44.6 | none | 20.2% |
| AME AMETEK Inc | $55.0B | 34.9 | 0.54% | 14.5% |
| ROK Rockwell Automation Inc | $49.7B | 41.4 | 1.23% | 33.3% |
| COHR Coherent Corp | $46.7B | 58.0 | 0.02% | 8.4% |
| FLEX Flex Ltd | $31.7B | 32.6 | none | 9.5% |
| TDY Teledyne Technologies Inc | $30.3B | 29.5 | none | 9.5% |
| JBL Jabil Inc | $27.8B | 26.7 | 0.13% | 74.1% |
| HUBB Hubbell Inc | $22.5B | 24.7 | 1.34% | 23.3% |
| CDW CDW Corp | $20.7B | 19.1 | 1.57% | 42.6% |
| ZBRA Zebra Technologies Corp | $16.3B | 30.3 | none | 15.1% |
| GNRC Generac Holdings Inc | $11.9B | 45.9 | none | 9.5% |
Aerospace & Defense (12)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| GE General Electric Co | $320B | 35.1 | 0.54% | 50.6% |
| RTX RTX Corp | $269B | 32.1 | 1.41% | 12.6% |
| LMT Lockheed Martin Corp | $148B | 22.7 | 2.17% | 78.8% |
| BA Boeing Co | $136B | 17.8 | 0.25% | 127.1% |
| GD General Dynamics Corp | $103B | 23.0 | 1.59% | 17.4% |
| NOC Northrop Grumman Corp | $81.0B | 17.9 | 1.68% | 25.7% |
| HWM Howmet Aerospace Inc | $79.5B | 42.5 | 0.25% | 34.4% |
| TDG TransDigm Group Inc | $64.0B | 30.1 | 8.27% | 37.1% |
| LHX L3Harris Technologies Inc | $51.5B | 27.5 | 1.79% | 9.4% |
| AXON Axon Enterprise Inc | $34.8B | 174.4 | none | 5.9% |
| TXT Textron Inc | $15.3B | 16.3 | 0.12% | 11.9% |
| HII Huntington Ingalls Industries Inc | $12.5B | 18.9 | 1.73% | 12.9% |
Machinery (17)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| CAT Caterpillar Inc | $291B | 26.8 | 0.97% | 54.2% |
| DE Deere & Co | $179B | 36.7 | 0.98% | 18.1% |
| PH Parker-Hannifin Corp | $115B | 31.6 | 0.81% | 25.1% |
| ITW Illinois Tool Works Inc | $79.4B | 24.6 | 2.31% | 103.4% |
| CMI Cummins Inc | $70.4B | 25.9 | 1.57% | 21.9% |
| PCAR Paccar Inc | $53.5B | 19.4 | 2.71% | 13.8% |
| WAB Westinghouse Air Brake Technologies Corp | $49.0B | 35.8 | 0.41% | 12.2% |
| IR Ingersoll Rand Inc | $31.1B | 32.4 | 0.10% | 9.5% |
| OTIS Otis Worldwide Corp | $28.8B | 19.0 | 2.28% | 14.9% |
| DOV Dover Corp | $27.6B | 23.7 | 1.02% | 15.4% |
| XYL Xylem Inc | $21.2B | 19.6 | 1.91% | 10.0% |
| FTV Fortive Corp | $19.4B | 36.3 | 0.29% | 8.5% |
| NDSN Nordson Corp | $18.0B | 32.4 | 1.02% | 17.6% |
| IEX IDEX Corp | $17.3B | 33.4 | 1.23% | 12.9% |
| PNR Pentair PLC | $10.5B | 17.2 | 1.64% | 16.0% |
| SNA Snap-On Inc | n/a | n/a | none | n/a |
| SWK Stanley Black & Decker Inc | n/a | n/a | none | n/a |
Road & Rail (7)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| UNP Union Pacific Corp | $180B | 23.6 | 1.83% | 37.8% |
| UBER Uber Technologies Inc | $133B | 13.9 | none | 35.7% |
| CSX CSX Corp | $96.0B | 26.8 | 1.06% | 25.9% |
| NSC Norfolk Southern Corp | $76.8B | 28.6 | 1.58% | 16.7% |
| ODFL Old Dominion Freight Line Inc | $35.6B | 32.7 | 0.67% | 24.9% |
| JBHT J B Hunt Transport Services Inc | $20.5B | 30.3 | 0.83% | 18.7% |
| FDXF FedEx Freight Holding Company Inc | $16.4B | 78.5 | none | n/a |
Commercial Services & Supplies (6)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| WM Waste Management Inc | $89.9B | 29.3 | 1.64% | 30.9% |
| CTAS Cintas Corp | $87.7B | 42.6 | 0.83% | 42.1% |
| RSG Republic Services Inc | $74.9B | 34.3 | 1.02% | 18.3% |
| CPRT Copart Inc | $27.4B | 18.4 | none | 15.9% |
| VLTO Veralto Corp | $27.1B | 27.5 | 0.44% | 32.8% |
| ROL Rollins Inc | n/a | n/a | none | n/a |
Construction (6)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| PWR Quanta Services Inc | $95.7B | 72.1 | 0.07% | 14.7% |
| CRH CRH PLC | $60.0B | 15.6 | 1.69% | 16.3% |
| FIX Comfort Systems USA Inc | $43.6B | 26.7 | 0.24% | 55.2% |
| MLM Martin Marietta Materials Inc | $38.1B | 15.5 | 0.53% | 23.1% |
| VMC Vulcan Materials Co | $37.0B | 33.2 | 0.72% | 13.1% |
| EME EMCOR Group Inc | $30.0B | 20.8 | 0.19% | 38.5% |
Building (7)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| JCI Johnson Controls International PLC | $90.4B | 31.7 | 1.08% | 21.2% |
| TT Trane Technologies PLC | $90.1B | 30.6 | 0.98% | 34.6% |
| CARR Carrier Global Corp | $44.1B | 36.1 | 1.77% | 8.9% |
| ALLE Allegion PLC | $15.8B | 22.8 | 1.17% | 32.7% |
| MAS Masco Corp | $15.7B | 17.7 | 1.67% | 279.8% |
| LII Lennox International Inc | $11.9B | 14.9 | 1.53% | 67.0% |
| AOS A O Smith Corp | $8.6B | 17.3 | 2.29% | 27.0% |
Professional Services (7)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| ADP Automatic Data Processing Inc | $117B | 25.8 | 2.29% | 75.8% |
| PAYX Paychex Inc | $40.2B | 22.3 | 4.04% | 47.1% |
| VRSK Verisk Analytics Inc | $25.7B | 29.0 | 1.00% | 324.3% |
| EFX Equifax Inc | $21.5B | 28.9 | 1.21% | 16.5% |
| BR Broadridge Financial Solutions Inc | $20.4B | 18.2 | 2.17% | 40.2% |
| LDOS Leidos Holdings Inc | $18.1B | 13.2 | 1.77% | 27.4% |
| J Jacobs Solutions Inc | $18.1B | 53.5 | 0.89% | 9.9% |
Trading Companies & Distributors (4)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| URI United Rentals Inc | $73.9B | 25.9 | 0.66% | 31.0% |
| GWW WW Grainger Inc | $64.9B | 34.7 | 0.76% | 48.7% |
| FAST Fastenal Co | $59.6B | 42.0 | 1.85% | 35.1% |
| FERG Ferguson Enterprises Inc | $46.4B | 19.0 | 1.45% | 40.6% |
Logistics & Transportation (4)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| UPS United Parcel Service Inc | $92.3B | 20.2 | 5.86% | 29.1% |
| FDX FedEx Corp | $74.0B | 19.0 | 1.79% | 12.6% |
| EXPD Expeditors International of Washington Inc | $25.9B | 28.1 | 0.81% | 40.7% |
| CHRW CH Robinson Worldwide Inc | $14.2B | 22.5 | 2.13% | 36.0% |
Industrial Conglomerates (2)
| Stock | Market value | P/E | Dividend yield | Return on equity |
|---|---|---|---|---|
| MMM 3M Co | $90.3B | 25.5 | 1.77% | 94.0% |
| HON Honeywell International Inc | $69.3B | 9.8 | 3.72% | 41.2% |
Airlines (3)
Frequently asked questions: industrial stocks
How many industrial stocks does this site track?
94 industrial stocks as of October 31, 2026, in 12 industries, with a combined market value of $6.11T. The largest are GE, CAT and RTX.
What is the median P/E of industrial stocks?
27.5, against 23.5 for all 503 tracked stocks (medians, loss-makers excluded). The median dividend yield among payers is 1.17% against 1.91%.
Which industrial stocks pay the highest dividends?
TDG at 8.27%, UPS at 5.86% and PAYX at 4.04%. A high yield can come from a fallen share price, so check coverage on the Sustainable Dividend Screener.
How do you analyze industrial stocks?
Check the order backlog trend, the share of recurring service revenue, operating margin through the last downturn and debt against cash flow. Then compare a company with the group medians on this page rather than with the whole market.
Does this page say which industrial stock to buy?
No. It shows what the data says about the group and how to read it. Every figure is as of October 31, 2026 and describes the past. Read the Editorial Standards for how this site handles data.
Where does this data come from?
- Prices, P/E, yield and margins: the site's weekly screener data (market data from Finnhub and Twelve Data); medians skip stocks with no figure.
- Financial statements and scores: each company's own 10-K filings on SEC EDGAR.
- Grouping: the site's twelve-sector grouping (Sector Map); the narrow industry labels come from its company data.
- Method and limits: every figure is shown as published, with its date, and refreshed weekly (data as of October 31, 2026). There is no composite score, and nothing here predicts where a rate goes next. Read the Editorial Standards for how this site handles data.
Educational content only, not investment, currency-trading or tax advice. Exchange rates and interest rates move for reasons no single table captures.