1 Industrials Stock to Target This Week and 2 We Find Risky

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 8.1% has trailed the S&P 500’s 11.4% gain.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one industrials stock boasting a durable advantage and two we’re swiping left on.

Two Industrials Stocks to Sell:

Deere (DE)

Market Cap: $161.7 billion

Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.

Why Should You Dump DE?

1. Sales tumbled by 10.1% annually over the last two years, showing market trends are working against it during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Eroding returns on capital suggest its historical profit centers are aging

Deere is trading at $595.98 per share, or 29.7x forward P/E. To fully understand why you should be careful with DE, check out our full research report (it’s free).

Heartland Express (HTLD)

Market Cap: $1.19 billion

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

Why Are We Out on HTLD?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 18.5% annually over the last two years
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 19.4% annually
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $14.80 per share, Heartland Express trades at 109.5x forward P/E. Check out our free in-depth research report to learn more about why HTLD doesn’t pass our bar.

One Industrials Stock to Watch:

Allison Transmission (ALSN)

Market Cap: $9.58 billion

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Why Are We Fans of ALSN?

1. Impressive 12.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 21.5% exceeded its revenue gains over the last five years
3. ALSN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Allison Transmission’s stock price of $115.48 implies a valuation ratio of 10.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.