2 Industrials Stocks Worth Your Attention and 1 Facing Headwinds

Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the industry has underperformed the market over the past six months as its 13.6% return lagged the S&P 500 by 2.7 percentage points.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are two industrials stocks we think can generate sustainable market-beating returns and one we’re swiping left on.

One Industrials Stock to Sell:

Tennant (TNC)

Market Cap: $1.33 billion

As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.

Why Should You Dump TNC?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
3. Sales over the last two years were less profitable as its earnings per share fell by 4.3% annually while its revenue was flat

At $73.54 per share, Tennant trades at 11.4x forward P/E. Read our free research report to see why you should think twice about including TNC in your portfolio.

Two Industrials Stocks to Watch:

Republic Services (RSG)

Market Cap: $63.78 billion

Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.

Why Do We Like RSG?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years
2. Highly efficient business model is illustrated by its impressive 18.9% operating margin, and its profits increased over the last five years as it scaled
3. Strong free cash flow margin of 13.8% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

Republic Services’s stock price of $207.07 implies a valuation ratio of 28.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

GE Aerospace (GE)

Market Cap: $320.8 billion

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Should You Buy GE?

1. Market share has increased this cycle as its 15.2% annual revenue growth over the last two years was exceptional
2. GE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Improving returns on capital reflect management’s ability to monetize investments

GE Aerospace is trading at $304.32 per share, or 46.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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-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

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