3 Industrials Stocks We Keep Off Our Radar

Whether you see them or not, industrials businesses play a crucial part in our daily activities. Their momentum is also rising as lower interest rates have incentivized higher capital spending. As a result, the industry has posted a 28.1% gain over the past six months, beating the S&P 500 by 9.5 percentage points.

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. With that said, here are three industrials stocks we’re passing on.

Janus (JBI)

Market Cap: $1.37 billion

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.

Why Does JBI Give Us Pause?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Janus is trading at $9.86 per share, or 7.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why JBI doesn’t pass our bar.

Rush Enterprises (RUSHA)

Market Cap: $4.25 billion

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Pass on RUSHA?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Estimated sales decline of 6.5% for the next 12 months implies an even more challenging demand environment
3. Earnings per share have dipped by 10.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term

Rush Enterprises’s stock price of $53.90 implies a valuation ratio of 13.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including RUSHA in your portfolio.

Avery Dennison (AVY)

Market Cap: $12.51 billion

Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Why Does AVY Fall Short?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. 3.4 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
3. Eroding returns on capital suggest its historical profit centers are aging

At $160.42 per share, Avery Dennison trades at 15.6x forward P/E. If you’re considering AVY for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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-small-cap company Comfort Systems (+782% 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.