3 Industrials Stocks We Steer Clear Of

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 17.4% for the sector - higher than the S&P 500’s 15.3% 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. Taking that into account, here are three industrials stocks best left ignored.

Albany (AIN)

Market Cap: $1.38 billion

Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Why Do We Steer Clear of AIN?

1. 2.5% annual revenue growth over the last two years was slower than its industrials peers
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.9 percentage points
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Albany is trading at $48.24 per share, or 25.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AIN.

C.H. Robinson Worldwide (CHRW)

Market Cap: $17.65 billion

Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.

Why Are We Wary of CHRW?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.4% annually over the last two years
2. Gross margin of 7.4% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Waning returns on capital imply its previous profit engines are losing steam

At $150.27 per share, C.H. Robinson Worldwide trades at 26.5x forward P/E. If you’re considering CHRW for your portfolio, see our FREE research report to learn more.

Crown Holdings (CCK)

Market Cap: $11.15 billion

Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Why Is CCK Not Exciting?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
2. Projected sales growth of 3.1% for the next 12 months suggests sluggish demand
3. Gross margin of 20.5% is below its competitors, leaving less money to invest in areas like marketing and R&D

Crown Holdings’s stock price of $97.82 implies a valuation ratio of 12.1x forward P/E. To fully understand why you should be careful with CCK, check out our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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 Exlservice (+354% 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.