1 Industrials Stock Worth Investigating and 2 We Avoid

Whether you see them or not, industrials businesses play a crucial part in our daily activities. 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 23.7% for the sector - higher than the S&P 500’s 16.8% return.

Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. On that note, here is one industrials stock boasting a durable advantage and two that may face trouble.

Two Industrials Stocks to Sell:

MasTec (MTZ)

Market Cap: $15.48 billion

Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Does MTZ Fall Short?

1. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.1%
2. Annual earnings per share growth of 2.1% underperformed its revenue over the last five years, showing its incremental sales were less profitable
3. 3.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

MasTec is trading at $201 per share, or 30.5x forward P/E. Read our free research report to see why you should think twice about including MTZ in your portfolio.

MDU Resources (MDU)

Market Cap: $3.29 billion

Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries.

Why Are We Out on MDU?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 37.6% annually over the last five years
2. Earnings per share have dipped by 9.9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $16.09 per share, MDU Resources trades at 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than MDU.

One Industrials Stock to Watch:

Granite Construction (GVA)

Market Cap: $4.80 billion

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Why Are We Positive On GVA?

1. Annual revenue growth of 11.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42% outpaced its revenue gains
3. Historical investments are beginning to pay off as its returns on capital are growing

Granite Construction’s stock price of $109.60 implies a valuation ratio of 17.8x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full 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).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.