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U.S. Industrials Sector Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies1037
  • 7D-1.2%
  • 3M3.6%
  • 1Y24.1%
  • YTD3.5%

In the last week, the Industrials industry is down 1.2% with RTX down the most at 4.6%. Meanwhile, GE Vernova actually outperformed within the industry, gaining 7.7% in the last week. Over the past 12 months, the industry was up 24%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

Has the U.S. Industrials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 25 Mar 2026US$7.0tUS$2.9tUS$212.5b24.4x32.7x2.4x
Fri, 20 Feb 2026US$7.4tUS$2.8tUS$208.6b26.9x35.7x2.6x
Sun, 18 Jan 2026US$7.0tUS$2.7tUS$209.3b26.1x33.2x2.5x
Tue, 16 Dec 2025US$6.5tUS$2.7tUS$209.6b25x30.9x2.4x
Thu, 13 Nov 2025US$6.4tUS$2.7tUS$211.1b24.5x30.3x2.3x
Sat, 11 Oct 2025US$6.4tUS$2.7tUS$210.1b24.1x30.4x2.4x
Mon, 08 Sep 2025US$6.2tUS$2.7tUS$208.3b25x29.7x2.3x
Wed, 06 Aug 2025US$6.2tUS$2.7tUS$208.8b24.1x29.6x2.3x
Fri, 04 Jul 2025US$6.1tUS$2.7tUS$205.2b24.3x29.6x2.3x
Sun, 01 Jun 2025US$5.7tUS$2.7tUS$206.2b22.4x27.8x2.1x
Tue, 29 Apr 2025US$5.2tUS$2.7tUS$204.6b20.7x25.6x1.9x
Thu, 27 Mar 2025US$5.5tUS$2.7tUS$203.3b21.3x26.9x2x
Sat, 22 Feb 2025US$5.6tUS$2.7tUS$209.4b22.3x26.6x2.1x
Mon, 20 Jan 2025US$5.8tUS$2.7tUS$196.4b24.6x29.5x2.1x
Wed, 18 Dec 2024US$5.8tUS$2.7tUS$198.0b24.1x29.2x2.1x
Fri, 15 Nov 2024US$6.0tUS$2.7tUS$194.6b24.3x30.8x2.2x
Sun, 13 Oct 2024US$5.8tUS$2.7tUS$180.3b23.9x32.1x2.1x
Tue, 10 Sep 2024US$5.3tUS$2.7tUS$179.8b21.2x29.3x2x
Thu, 08 Aug 2024US$5.1tUS$2.7tUS$180.3b20.8x28.3x1.9x
Sat, 06 Jul 2024US$5.1tUS$2.7tUS$170.2b21.2x30.1x1.9x
Mon, 03 Jun 2024US$5.2tUS$2.7tUS$169.9b22.7x30.8x1.9x
Wed, 01 May 2024US$5.1tUS$2.7tUS$169.6b22.1x30.3x1.9x
Fri, 29 Mar 2024US$5.4tUS$2.6tUS$172.6b23.8x31x2x
Sun, 25 Feb 2024US$5.1tUS$2.7tUS$174.3b23.2x29.2x1.9x
Tue, 23 Jan 2024US$4.9tUS$2.7tUS$184.2b21.1x26.7x1.8x
Thu, 21 Dec 2023US$4.9tUS$2.7tUS$182.7b21.1x26.8x1.8x
Sat, 18 Nov 2023US$4.5tUS$2.7tUS$181.9b19.3x24.8x1.7x
Mon, 16 Oct 2023US$4.4tUS$2.7tUS$192.6b17.8x22.8x1.6x
Wed, 13 Sep 2023US$4.5tUS$2.7tUS$189.4b18.3x24x1.7x
Fri, 11 Aug 2023US$4.7tUS$2.7tUS$189.1b18.9x24.7x1.7x
Sun, 09 Jul 2023US$4.5tUS$2.7tUS$185.6b17.9x24.4x1.7x
Tue, 06 Jun 2023US$4.3tUS$2.7tUS$183.0b17.3x23.5x1.6x
Thu, 04 May 2023US$4.2tUS$2.7tUS$186.2b17.7x22.7x1.6x
Sat, 01 Apr 2023US$4.3tUS$2.6tUS$166.2b18.9x25.9x1.6x
Price to Earnings Ratio

25.9x


Total Market Cap: US$4.3tTotal Earnings: US$166.2bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 28.3x202420252026
Current Industry PE
  • Investors are optimistic on the American Industrials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 32.7x which is higher than its 3-year average PE of 28.3x.
  • The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 2.4x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 8.5% per year over the last three years.
  • Revenues for these companies have grown 2.8% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Industrials sector?

US Market-2.29%
Industrials-1.23%
Marine and Shipping3.78%
Electrical2.61%
Construction2.09%
Machinery1.14%
Building1.06%
Logistics1.03%
Airlines-0.29%
Infrastructure-0.42%
Trade Distributors-0.78%
Transportation-2.83%
Professional Services-2.87%
Industrials-3.27%
Aerospace & Defense-4.57%
Commercial Services-4.64%
Industry PE
  • Investors are most optimistic about the Electrical industry even though it's trading below its 3-year average PE ratio of 63.3x.
    • Analysts expect its future annual earnings growth (19.8%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 16.1x.
Forecasted Growth
  • Analysts are most optimistic on the Construction industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Marine and Shipping industry is expected to see its earnings decline by 2.9% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
GEV GE VernovaUS$909.417.7%
+US$17.6b		170.5%PE50.2x
CAT CaterpillarUS$716.632.1%
+US$6.8b		109.2%PE37.5x
PH Parker-HannifinUS$924.583.5%
+US$3.9b		41.9%PE33x
ETN EatonUS$374.102.8%
+US$3.9b		24.7%PE35.5x
FDX FedExUS$359.961.5%
+US$2.5b		49.3%PE19.2x

Latest News

FDX
US$359.96
FedEx
7D
1.5%
1Y
49.3%
PL
US$31.83
Planet Labs PBC
7D
17.5%
1Y
697.7%
BA
US$196.42
Boeing
7D
-6.8%
1Y
7.6%
UBER
US$72.34
Uber Technologies
7D
-7.0%
1Y
-4.3%
DE
US$583.02
Deere
7D
1.5%
1Y
21.7%
GEV
US$909.41
GE Vernova
7D
7.7%
1Y
170.5%

GEV: Index Inclusion And Energy Contracts Will Support Balanced Long Term Returns

Analysts have raised their price target for GE Vernova to $861.62 from $819.92, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E, which together indicate a higher estimated fair value for the business. What's in the News GE Vernova is being added to the S&P 100 index, bringing the stock into a major benchmark followed by large institutional investors (Index Constituent Adds).
JCI
US$136.43
Johnson Controls International
7D
2.9%
1Y
61.8%

JCI: Applied HVAC Supercycle And AI Cooling Demand Will Support Upside

Analysts have lifted their Johnson Controls International price targets, with moves such as Morgan Stanley's increase to $140 and Melius Research's $148 target reflecting updated earnings estimates and a broader view that applied HVAC demand extends well beyond data centers. Analyst Commentary Bullish analysts are leaning into a more constructive view on Johnson Controls International, pointing to recent price target changes and rating shifts as signals of growing confidence in the story.
RKLB
US$66.07
Rocket Lab
7D
-15.9%
1Y
225.9%
PH
US$924.58
Parker-Hannifin
7D
3.5%
1Y
41.9%

PH: Future Upside Will Depend On Margin Expansion And Ongoing Share Repurchases

Analysts now set the Parker Hannifin price target at $1,167.86, compared with the prior $1,139.00, citing updated assumptions around revenue growth of 7.15%, a profit margin of 19.23%, a discount rate of 8.42% and a future P/E of 37.19x. What's in the News Parker-Hannifin revised earnings guidance for the fiscal year ending June 30, 2026, with reported sales growth guided to a range of 5.5% to 7.5% and organic sales growth of approximately 5% at the midpoint (Corporate guidance).
NOC
US$682.16
Northrop Grumman
7D
-5.8%
1Y
34.6%
CAT
US$716.63
Caterpillar
7D
2.1%
1Y
109.2%

CAT: Data Center Power Dependence Will Likely Restrain Future Return Potential

Caterpillar's updated analyst price target reflects a modest fair value lift of about $1 per share. Analysts point to stronger construction demand signals from ConExpo, lengthening engine lead times tied to data center projects, and growing confidence in the company as a physical AI and infrastructure supplier.
LMT
US$610.17
Lockheed Martin
7D
-4.1%
1Y
38.0%
HON
US$221.57
Honeywell International
7D
-4.3%
1Y
4.5%

HON: Aerospace Spin And Resegmentation Will Support Future Repricing Potential

Honeywell International's updated analyst price targets, which now run as high as about $293, reflect modest tweaks to earnings and segment estimates, along with growing interest in the planned aerospace spin and sum of the parts valuations. Analyst Commentary Analyst sentiment around Honeywell has recently leaned constructive, with several bullish analysts adjusting price targets higher and highlighting the upcoming aerospace spin, updated segment disclosures, and cash generation as key supports for valuation.
GE
US$290.63
General Electric
7D
-3.8%
1Y
37.0%

GE: Fairly Valued On Engine Strength Automation Push And Execution Risk

Analysts have trimmed the updated fair value estimate for General Electric to about $297 from roughly $301, while still lifting Street price targets into the $378 to $425 range. They highlight GE Aerospace's competitive moat, engine business review work, and refreshed guidance as support for the revised outlook.
ETN
US$374.10
Eaton
7D
2.8%
1Y
24.7%
RTX
US$194.00
RTX
7D
-4.6%
1Y
43.0%

RTX: Fair Value View Balances Aerospace Demand With Defense Policy Uncertainty

Our RTX fair value estimate edges up by about $0.24 to $217.16 as analysts broadly lift price targets, highlighting product upgrades such as the PW1100G Section Plus option and updated sector views as key supports. Analyst Commentary Recent Street research on RTX is clustered around higher price targets and refreshed views on the commercial aerospace and defense group, with most commentary framing current levels in the context of product execution and sector positioning rather than short term trading calls.