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. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 15.9% for the sector - higher than the S&P 500’s 5.1% return.

Nevertheless, investors must be mindful as the cycle can unexpectedly turn. When this inevitably happens, only the elite companies will survive and ultimately thrive. On that note, here is one industrials stock poised to generate sustainable market-beating returns and two that may face trouble.

Two Industrials Stocks to Sell:

ArcBest (ARCB)

Market Cap: $2.34 billion

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

Why Are We Out on ARCB?

1. Underwhelming unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Waning returns on capital imply its previous profit engines are losing steam

ArcBest is trading at $104.68 per share, or 23.3x forward P/E. Dive into our free research report to see why there are better opportunities than ARCB.

Garrett Motion (GTX)

Market Cap: $3.71 billion

A key player in the transition to cleaner vehicles, Garrett Motion (NYSE:GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.

Why Do We Think Twice About GTX?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years
2. Anticipated sales growth of 3.3% for the next year implies demand will be shaky
3. Gross margin of 19.8% reflects its high production costs

Garrett Motion’s stock price of $19.53 implies a valuation ratio of 10.3x forward P/E. To fully understand why you should be careful with GTX, check out our full research report (it’s free).

One Industrials Stock to Buy:

EVgo (EVGO)

Market Cap: $338.8 million

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Should You Buy EVGO?

At $2.53 per share, EVgo trades at 90.6x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.