2 Industrials Stocks Worth Investigating and 1 We Turn Down

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. 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 19.5% return over the past six months has topped the S&P 500 by 8.5 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. With that said, here are two industrials stocks we think can generate sustainable market-beating returns and one we’re steering clear of.

One Industrials Stock to Sell:

Scorpio Tankers (STNG)

Market Cap: $3.5 billion

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Why Does STNG Fall Short?

1. Sales tumbled by 13.6% annually over the last two years, showing market trends are working against it during this cycle
2. Sluggish trends in its total vessels suggest customers aren’t adopting its solutions as quickly as the company hoped
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Scorpio Tankers’s stock price of $77.65 implies a valuation ratio of 6.5x forward P/E. Read our free research report to see why you should think twice about including STNG in your portfolio.

Two Industrials Stocks to Watch:

Teledyne (TDY)

Market Cap: $28.24 billion

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.

Why Are We Positive on TDY?

1. Impressive 14.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Free cash flow margin jumped by 9.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $614.26 per share, Teledyne trades at 25.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Curtiss-Wright (CW)

Market Cap: $26.6 billion

Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Why Are We Backing CW?

1. Annual revenue growth of 11% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin grew by 6.3 percentage points over the last five years, giving the company more chips to play with

Curtiss-Wright is trading at $735.02 per share, or 47.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.