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U.S. Industrials Sector Analysis

UpdatedDec 13, 2025
DataAggregated Company Financials
Companies1045
  • 7D1.0%
  • 3M3.9%
  • 1Y13.5%
  • YTD18.8%

Over the last 7 days, the Industrials industry has remained flat, although notably General Electric gained 5.6%. The past year has been better, since the industry has gained 13% in that time. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 13 Dec 2025US$6.6tUS$2.7tUS$209.6b25.1x31.3x2.4x
Mon, 10 Nov 2025US$6.4tUS$2.7tUS$211.1b24.3x30.1x2.3x
Wed, 08 Oct 2025US$6.5tUS$2.7tUS$209.9b24.7x30.8x2.4x
Fri, 05 Sep 2025US$6.1tUS$2.7tUS$209.7b25.2x29.2x2.3x
Sun, 03 Aug 2025US$6.1tUS$2.7tUS$210.0b23.6x29x2.3x
Tue, 01 Jul 2025US$6.0tUS$2.7tUS$205.3b23.1x29.1x2.2x
Thu, 29 May 2025US$5.8tUS$2.7tUS$206.3b22.3x28.1x2.2x
Sat, 26 Apr 2025US$5.2tUS$2.7tUS$204.6b20.7x25.6x1.9x
Mon, 24 Mar 2025US$5.4tUS$2.7tUS$203.4b21.2x26.3x2x
Wed, 19 Feb 2025US$5.7tUS$2.7tUS$208.3b23.6x27.5x2.1x
Fri, 17 Jan 2025US$5.7tUS$2.7tUS$196.5b24.5x29.1x2.1x
Sun, 15 Dec 2024US$5.8tUS$2.7tUS$198.3b24.2x29.2x2.1x
Tue, 12 Nov 2024US$6.0tUS$2.7tUS$193.9b25.4x30.9x2.2x
Thu, 10 Oct 2024US$5.7tUS$2.7tUS$179.9b23.5x31.5x2.1x
Sat, 07 Sep 2024US$5.2tUS$2.7tUS$179.9b21.1x28.9x1.9x
Mon, 05 Aug 2024US$5.1tUS$2.7tUS$179.7b21.8x28.6x1.9x
Wed, 03 Jul 2024US$5.1tUS$2.7tUS$170.5b21.1x29.8x1.9x
Fri, 31 May 2024US$5.2tUS$2.7tUS$169.9b22.8x30.5x1.9x
Sun, 28 Apr 2024US$5.2tUS$2.7tUS$169.3b22.6x30.7x1.9x
Tue, 26 Mar 2024US$5.3tUS$2.7tUS$172.7b23.2x30.8x2x
Thu, 22 Feb 2024US$5.0tUS$2.7tUS$174.0b23x28.7x1.9x
Sat, 20 Jan 2024US$4.9tUS$2.7tUS$184.2b20.7x26.3x1.8x
Mon, 18 Dec 2023US$4.9tUS$2.7tUS$182.7b21.2x26.6x1.8x
Wed, 15 Nov 2023US$4.4tUS$2.7tUS$184.9b19.2x23.8x1.6x
Fri, 13 Oct 2023US$4.5tUS$2.7tUS$192.6b17.9x23.3x1.7x
Sun, 10 Sep 2023US$4.5tUS$2.7tUS$189.3b18.3x23.8x1.7x
Tue, 08 Aug 2023US$4.7tUS$2.7tUS$190.6b19.1x24.8x1.7x
Thu, 06 Jul 2023US$4.5tUS$2.7tUS$185.6b18.1x24.5x1.7x
Sat, 03 Jun 2023US$4.3tUS$2.7tUS$182.9b17.6x23.5x1.6x
Mon, 01 May 2023US$4.2tUS$2.7tUS$174.6b17.7x24.3x1.6x
Wed, 29 Mar 2023US$4.2tUS$2.6tUS$166.1b18.3x25.2x1.6x
Fri, 24 Feb 2023US$4.1tUS$2.6tUS$161.4b19x25.4x1.6x
Sun, 22 Jan 2023US$4.0tUS$2.5tUS$156.3b18.2x25.8x1.6x
Tue, 20 Dec 2022US$3.9tUS$2.5tUS$153.6b17x25.6x1.6x
Price to Earnings Ratio

25.6x


Total Market Cap: US$3.9tTotal Earnings: US$153.6bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 27.6x202320242025
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 31.3x which is higher than its 3-year average PE of 27.6x.
  • The 3-year average PS ratio of 1.9x 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 11% per year over the last three years.
  • Revenues for these companies have grown 2.9% 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-0.66%
Industrials0.98%
Aerospace & Defense4.04%
Logistics3.51%
Airlines3.23%
Infrastructure1.35%
Professional Services1.27%
Machinery1.20%
Industrials0.96%
Trade Distributors0.57%
Commercial Services0.23%
Transportation-0.80%
Building-0.86%
Electrical-1.51%
Construction-1.59%
Marine and Shipping-3.75%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 59.0x.
    • Analysts are expecting annual earnings growth of 24.1%, which is higher than its past year's earnings growth of 15.5% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 15.5x.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 38% over the next 5 years.
  • This is better than its past earnings decline of 47% per year.
  • In contrast, the Marine and Shipping industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
GE General ElectricUS$299.815.6%
+US$16.7b		80.6%PE39.3x
GEV GE VernovaUS$671.716.4%
+US$11.0b		102.3%PE107x
RTX RTXUS$178.664.4%
+US$10.1b		51.7%PE36.3x
RKLB Rocket LabUS$61.4925.3%
+US$6.6b		151.8%PS59.2x
LMT Lockheed MartinUS$480.256.2%
+US$6.5b		-2.9%PE26.5x

Latest News

CAT
US$597.89
Caterpillar
7D
-0.9%
1Y
57.1%
VRT
US$161.27
Vertiv Holdings Co
7D
-14.7%
1Y
28.2%
UPS
US$100.92
United Parcel Service
7D
6.4%
1Y
-21.6%

UPS: Margin And Cost Efficiencies Will Drive Earnings Recovery Ahead

The updated fair value estimate for United Parcel Service has been reduced by about $10 to $122 per share, as analysts temper revenue growth and valuation multiples, despite acknowledging improving margins, cost efficiencies, and a more credible transformation outlook following a solid Q3 earnings beat and higher Street price targets. Analyst Commentary Bullish analysts have responded positively to the latest Q3 results, citing a solid earnings beat, reinstated guidance, and meaningful progress on cost initiatives as support for higher valuation.
RKLB
US$61.49
Rocket Lab
7D
25.3%
1Y
151.8%

Rocket Lab's Path to Success is Wider and Closer Than Before - Much Like Its Neutron Rocket

Since my original post, RKLB has continued to expand its space systems business, including through acquisitions and raising more capital. Its Neutron rocket is still largely on schedule; and as expected, no major new players have arrived to take RKLBs #2 spot in space launch.
FERG
US$224.66
Ferguson Enterprises
7D
-9.5%
1Y
19.8%
GEV
US$671.71
GE Vernova
7D
6.4%
1Y
102.3%
BE
US$94.98
Bloom Energy
7D
-20.3%
1Y
271.2%
GE
US$299.81
General Electric
7D
5.6%
1Y
80.6%

GE: Rising Defense Demand Will Drive Stronger Aerospace Profits Ahead

Analysts have modestly raised their price target on General Electric, citing slightly stronger expected revenue growth and profit margins that nudge fair value to approximately 339.69 dollars from 339 dollars previously. What's in the News The Pentagon is pushing missile makers, including GE Aerospace, to double or even quadruple production amid concerns over a potential future conflict with China.
PWR
US$438.11
Quanta Services
7D
-4.9%
1Y
29.8%

PWR: Expanding Power Generation And Grid Projects Will Support Balanced Long-Term Outlook

Analysts have nudged their fair value estimate for Quanta Services slightly higher to approximately $474, citing a series of price target increases toward the mid to high $400s and up to about $550. They point to strong Q3 execution, expanding power generation and energy infrastructure opportunities, and robust transmission and distribution demand as reinforcing confidence in its long term growth profile.
LMT
US$480.25
Lockheed Martin
7D
6.2%
1Y
-2.9%

LMT: Rising Defense Export Demand Will Drive Returns Despite Execution Risks

Analysts have modestly raised their price targets on Lockheed Martin, with recent increases to $500 and $545 per share reflecting stronger order momentum in key programs and resilient aerospace demand, even as operational challenges and a higher discount rate temper the potential upside. Analyst Commentary Street research heading into the Q3 print reflects a balanced mix of optimism around Lockheed Martin's growth prospects and caution around execution risks and the broader defense spending backdrop.
HWM
US$198.31
Howmet Aerospace
7D
3.8%
1Y
74.8%

HWM: Future Margin Expansion Will Be Driven By Rising Aero Engine Spares Demand

Analysts have raised their price target on Howmet Aerospace to $250 from $215, citing accelerating high margin growth, sustained double digit revenue expectations through 2026, and strengthening demand across aero and industrial gas turbine end markets. Analyst Commentary Street research remains overwhelmingly constructive on Howmet Aerospace, with multiple firms lifting price targets in response to strong quarterly execution and a clearer long term growth algorithm through 2026.
NOC
US$569.76
Northrop Grumman
7D
3.8%
1Y
18.7%

NOC: Future Defense Budgets Will Support Cash Flows And Share Outperformance

Analysts have modestly raised their price target on Northrop Grumman to approximately $670 per share, reflecting confidence in the company’s stable mid single digit growth outlook, expanding 2026 budget visibility across key programs, and improving long term cash generation from platforms like B 21 and Sentinel. Analyst Commentary Recent Street research reflects a generally constructive stance on Northrop Grumman, with multiple price target increases clustered around the mid to high $600s and at least one upgrade to a Buy rating.
UBER
US$85.11
Uber Technologies
7D
-6.8%
1Y
42.0%
TT
US$391.19
Trane Technologies
7D
-2.6%
1Y
-2.0%

TT: AI Building Solutions Will Drive Stronger Margins And Upside Ahead

Analysts have modestly raised their price target on Trane Technologies to approximately $482 per share, reflecting slightly higher assumed discount rates and future valuation multiples, while maintaining their outlook on revenue growth and profit margins. What's in the News Trane Technologies and Amazon reported that an AI driven building decarbonization project at three Amazon Grocery fulfillment centers cut energy use by nearly 15%, more than double initial targets.
RTX
US$178.66
RTX
7D
4.4%
1Y
51.7%

RTX: Evolving Defense Priorities And Cybersecurity Will Drive Outlook Amid Cautious Optimism

Analysts have slightly raised their price target for RTX from $192.06 to $193.79, citing modest improvements in projected profit margin and minor adjustments in revenue growth forecasts. What's in the News RTX's Raytheon division is at the center of policy discussions after the U.S. lifted restrictions on Ukraine's use of allied-supplied long-range missiles.
TDG
US$1,294.65
TransDigm Group
7D
-3.9%
1Y
2.8%

TDG: Multi-Year Earnings Expansion Will Rely On Margin Strength And M&A Capacity

TransDigm Group's fair value estimate has been increased by analysts to $1,577.65 from $1,557.89. This change reflects continued conviction in strong organic growth, robust earnings performance, and expectations for future margin resilience despite a mixed outlook for certain market segments.