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U.S. Industrials Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies1074
  • 7D3.4%
  • 3M6.9%
  • 1Y23.6%
  • YTD3.4%

The Industrials industry has gained 3.4% in the last week and Lockheed Martin up 9.2%. In the same time, GE Vernova was down 8.4%. This means that the industry has gained 24% over the past year. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026US$6.8tUS$2.7tUS$210.5b25.4x32.1x2.5x
Tue, 09 Dec 2025US$6.4tUS$2.7tUS$209.6b24.8x30.6x2.3x
Thu, 06 Nov 2025US$6.4tUS$2.7tUS$215.4b24.9x29.5x2.3x
Sat, 04 Oct 2025US$6.4tUS$2.7tUS$209.3b25x30.6x2.4x
Mon, 01 Sep 2025US$6.2tUS$2.7tUS$208.6b25x29.8x2.3x
Wed, 30 Jul 2025US$6.3tUS$2.7tUS$205.8b24.3x30.5x2.3x
Fri, 27 Jun 2025US$5.9tUS$2.7tUS$205.2b23.4x28.5x2.2x
Sun, 25 May 2025US$5.7tUS$2.7tUS$206.3b22.4x27.5x2.1x
Tue, 22 Apr 2025US$5.1tUS$2.7tUS$203.0b19.5x25x1.9x
Thu, 20 Mar 2025US$5.4tUS$2.7tUS$203.5b21.6x26.5x2x
Sat, 15 Feb 2025US$5.7tUS$2.7tUS$206.3b23.6x27.8x2.1x
Mon, 13 Jan 2025US$5.5tUS$2.7tUS$197.0b23.3x28x2x
Wed, 11 Dec 2024US$5.9tUS$2.7tUS$198.3b24.5x29.7x2.2x
Fri, 08 Nov 2024US$6.0tUS$2.7tUS$194.0b24.9x30.7x2.2x
Sun, 06 Oct 2024US$5.7tUS$2.7tUS$179.9b23.1x31.5x2.1x
Tue, 03 Sep 2024US$5.5tUS$2.7tUS$179.6b22.6x30.4x2x
Thu, 01 Aug 2024US$5.4tUS$2.7tUS$180.7b23.1x29.8x2x
Sat, 29 Jun 2024US$5.1tUS$2.7tUS$170.6b21.6x30.1x1.9x
Mon, 27 May 2024US$5.3tUS$2.7tUS$170.0b22.5x31.1x2x
Wed, 24 Apr 2024US$5.2tUS$2.7tUS$168.3b23x30.9x1.9x
Fri, 22 Mar 2024US$5.3tUS$2.7tUS$172.6b23.3x30.6x2x
Sun, 18 Feb 2024US$5.0tUS$2.7tUS$174.5b22.6x28.8x1.9x
Tue, 16 Jan 2024US$4.9tUS$2.7tUS$184.2b20.8x26.4x1.8x
Thu, 14 Dec 2023US$4.7tUS$2.7tUS$182.7b20.7x26x1.7x
Sat, 11 Nov 2023US$4.3tUS$2.7tUS$185.1b18.3x23.5x1.6x
Mon, 09 Oct 2023US$4.4tUS$2.7tUS$192.2b17.7x22.7x1.6x
Wed, 06 Sep 2023US$4.6tUS$2.7tUS$189.3b18.9x24.3x1.7x
Fri, 04 Aug 2023US$4.7tUS$2.7tUS$191.5b19.1x24.6x1.7x
Sun, 02 Jul 2023US$4.6tUS$2.7tUS$184.1b18.3x25.1x1.7x
Tue, 30 May 2023US$4.2tUS$2.7tUS$183.0b17x23x1.6x
Thu, 27 Apr 2023US$4.1tUS$2.7tUS$173.7b17.6x23.8x1.6x
Sat, 25 Mar 2023US$4.1tUS$2.6tUS$166.1b18.1x24.8x1.6x
Mon, 20 Feb 2023US$4.2tUS$2.5tUS$161.2b19.3x25.9x1.6x
Wed, 18 Jan 2023US$4.1tUS$2.5tUS$154.9b18.5x26.5x1.6x
Price to Earnings Ratio

26.5x


Total Market Cap: US$4.1tTotal Earnings: US$154.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 27.8x202420252026
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 32.1x which is higher than its 3-year average PE of 27.8x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.5x.
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 2.8% 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 Market1.88%
Industrials3.40%
Trade Distributors6.38%
Logistics5.90%
Marine and Shipping5.68%
Professional Services5.31%
Aerospace & Defense5.26%
Airlines4.98%
Machinery4.39%
Industrials4.04%
Commercial Services2.82%
Infrastructure1.99%
Transportation0.97%
Building0.50%
Construction-0.24%
Electrical-0.49%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 60.6x.
    • Analysts are expecting annual earnings growth of 22.1%, which is higher than its past year's earnings growth of 16.6% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 15.7x.
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
LMT Lockheed MartinUS$542.929.2%
+US$10.6b		16.0%PE29.9x
CAT CaterpillarUS$617.623.2%
+US$9.0b		76.0%PE31.2x
BE Bloom EnergyUS$134.0735.8%
+US$8.4b		468.6%PE2076.7x
HON Honeywell InternationalUS$207.385.9%
+US$7.3b		-5.0%PE21.5x
UPS United Parcel ServiceUS$108.067.0%
+US$6.0b		-12.3%PE16.7x

Latest News

LMT
US$542.92
Lockheed Martin
7D
9.2%
1Y
16.0%

LMT: Strong Order Pipeline And Policy Tailwinds Should Support Long-Term Cash Generation

Narrative Update Analysts have lifted their implied fair value estimate for Lockheed Martin from about $589.61 to $605.00. This reflects updated views on fixed price program execution risk, slightly adjusted profit and revenue assumptions, and a higher future P/E multiple following recent price target increases tied to strong order activity across key defense programs.
UNP
US$228.44
Union Pacific
7D
-1.5%
1Y
1.4%

UNP: Merger Review And Regulatory Overhang Will Set Stage For Future Upside

Analysts have trimmed their Union Pacific fair value estimate slightly to about US$260 from roughly US$260.50. This reflects a lower blended Street price target as some factor in cautious views on the proposed Norfolk Southern merger, softer freight trends, a modestly higher discount rate, and only small changes to long term growth, margin, and P/E assumptions.
UPS
US$108.06
United Parcel Service
7D
7.0%
1Y
-12.3%

UPS: Rally Risks Ahead As Amazon Volume Decline And Cost Execution Concerns Build

Analysts have nudged our fair value estimate for United Parcel Service higher to align with recent Street price target increases in the US$105 to US$126 range, citing updated views on revenue growth, margins, and 2026 sector conditions. Analyst Commentary Recent research on United Parcel Service reflects a mixed tone, with several firms lifting price targets into a tighter US$105 to US$126 band while at least one is stepping back on rating and others highlighting execution and growth risks into 2026.
TT
US$381.70
Trane Technologies
7D
-4.1%
1Y
1.2%

TT: AI Building Decarbonization And Data Center Cooling Will Support Future Upside

Analysts now see slightly less upside for Trane Technologies, trimming their fair value estimate from about US$482.28 to around US$479.91, citing updated views on the discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News Trane Technologies and Amazon reported results from an AI powered building decarbonization project using BrainBox AI and AWS.
JCI
US$110.85
Johnson Controls International
7D
-9.4%
1Y
40.9%

JCI: Applied HVAC Cycle And AI Projects Will Support Future Upside

Analysts have nudged their fair value estimate for Johnson Controls International higher from US$130.00 to US$148.00, citing updated research that points to resilient applied HVAC demand, supportive artificial intelligence related orders, and recent price target raises across the Street. Analyst Commentary Recent Street research around Johnson Controls International has tilted more constructive, with several bullish analysts adjusting their fair value work higher and framing the recent share pullback as an opportunity rather than a signal of weakening fundamentals.
VRT
US$163.58
Vertiv Holdings Co
7D
-6.9%
1Y
26.9%

VRT: Data Center Energy Partnership And Dividend Hike Will Support Upside Potential

Analysts have slightly lifted their price target on Vertiv Holdings Co., with updated fair value estimates moving from about US$196.83 to roughly US$198.45 per share, reflecting small tweaks to the discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News Vertiv and Caterpillar, along with Solar Turbines, agreed to work together on energy optimization solutions for data centers, combining Vertiv power and cooling with Caterpillar power generation and CCHP offerings to provide predesigned, modular architectures for on-site power and cooling (Key Developments).
BE
US$134.07
Bloom Energy
7D
35.8%
1Y
468.6%

BE: AI Factory Power Partnership And Capital Plans Will Shape Future Outlook

Analysts have slightly adjusted their price target for Bloom Energy to reflect a fair value update from about $112.50 to roughly $111.18, citing small shifts in expected revenue growth, profit margins, the discount rate, and future P/E assumptions. What's in the News Bloom Energy and Brookfield announced a $5b partnership focused on building AI factories that combine power, compute, data center design, and capital to support artificial intelligence workloads (Key Developments).
LHX
US$335.77
L3Harris Technologies
7D
10.3%
1Y
61.2%

LHX: Future Space Refocus And Missile Programs Will Sustain Premium Earnings Multiple

Narrative Update Analysts have nudged their price targets on L3Harris Technologies higher. Recent updates cite refreshed models after 3Q25 results and expectations for future awards, which is reflected in a slightly adjusted fair value estimate of about $334.26 and a future P/E of roughly 27.49x.
WCN
US$166.31
Waste Connections
7D
-4.5%
1Y
-4.9%

WCN: Future Returns Will Be Driven By Compounding M&A And Cash Return Programs

The analyst price target for Waste Connections has edged up by about $1 to roughly $205.71, as analysts point to consistent Q3 execution, solid waste margin potential, ongoing acquisition opportunities, and a generally supportive view of the company as a high quality compounder, despite some timing adjustments around future RNG contributions. Analyst Commentary Recent Street research on Waste Connections centers on the quality of the core solid waste business, the role of acquisitions, and timing questions around renewable natural gas, or RNG, projects and other macro exposed areas like recycling and specialty waste.
CAT
US$617.62
Caterpillar
7D
3.2%
1Y
76.0%

CAT: Power Demand And Backlog Strength Will Drive Future Earnings Repricing

The analyst price target for Caterpillar has been raised from US$507 to US$780, with analysts citing stronger profit expectations, a higher assumed future P/E multiple, and recent Street research that highlights solid Q3 results, improving backlogs, and growing confidence around Energy & Transportation and Power Gen demand. Analyst Commentary Recent Street research on Caterpillar points to a wide range of views, but there is a clear pocket of bullish analysts who are leaning into the Q3 print, backlog trends, and perceived strength in Energy & Transportation, Power Gen, and Construction.
KTOS
US$113.70
Kratos Defense & Security Solutions
7D
43.4%
1Y
287.1%

KTOS: Orbit Deal And Defense Programs Will Drive Future Upside Potential

Narrative Update The analyst fair value estimate for Kratos Defense & Security Solutions has moved sharply higher from about US$78 to roughly US$137. Analysts point to raised Street price targets, updated revenue guidance, and the planned Orbit Technologies acquisition as key supports for the higher range of potential outcomes.
CSX
US$35.20
CSX
7D
-3.0%
1Y
10.8%

CSX: New Leadership And ONECSX Execution Will Shape Rail Network Future

Analysts have nudged the CSX price target higher to around US$41 to US$42 from about US$39 to US$40, citing a recent Q3 beat, one-off restructuring charges, and continued progress on the ONECSX and operational improvement initiatives as key supports for this shift. Analyst Commentary Recent research updates show a cluster of price target revisions for CSX toward the low US$40s after the Q3 report, with analysts pointing to the earnings outcome, one off restructuring charges, and ongoing ONECSX initiatives as key drivers of their views.
PWR
US$422.57
Quanta Services
7D
-3.9%
1Y
34.8%

PWR: Expanding Power Generation Platform Will Drive Future Infrastructure Contract Wins

Analysts lifted their fair value estimate for Quanta Services to $548 from $492, citing strong Q3 EBITDA performance, broad price target increases across the Street, and growing confidence in the company’s expanded power generation and holistic power solutions offerings. Analyst Commentary Bullish analysts have been lifting their price targets on Quanta Services following the Q3 report, pointing to solid execution and growing confidence in the company’s role across power, transmission, and energy infrastructure projects.
URI
US$938.79
United Rentals
7D
11.1%
1Y
39.9%

URI: Infrastructure And Data Center Demand Will Support Future Rental Upside

Analysts have nudged their fair value estimate for United Rentals slightly higher to about US$1,007.90, reflecting updated views on growth, margins, and a modestly higher future P/E after recent price target changes and research citing demand across infrastructure, data centers, and broader equipment rental trends. Analyst Commentary Recent research on United Rentals offers a mix of optimism around long term demand and free cash flow, alongside fresh questions about margins and where the stock should trade relative to peers.
HON
US$207.38
Honeywell International
7D
5.9%
1Y
-5.0%

HON: Post Spin Outlook Balances Breakup Catalyst Phase With Execution Risk

Narrative Update Overview The analyst price target for Honeywell International has been revised from US$203 to US$195 as analysts reset assumptions around growth, profitability and future P/E following Q3 updates, recent target trims and the planned Solstice Advanced Materials spin. Analyst Commentary Recent research on Honeywell has centered on the upcoming Solstice Advanced Materials spin and how that affects growth assumptions, execution risk and the valuation framework.
GEV
US$622.50
GE Vernova
7D
-8.4%
1Y
69.6%