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U.S. Industrials Sector Analysis

UpdatedJul 03, 2026
DataAggregated Company Financials
Companies1065
  • 7D-1.8%
  • 3M11.1%
  • 1Y23.8%
  • YTD15.1%

Over the last 7 days, the Industrials industry has dropped 1.8%, driven by a pullback from Honeywell International of 50%. Meanwhile, RTX actually outperformed within the industry, gaining 6.8% 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 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 03 Jul 2026US$7.8tUS$2.9tUS$218.3b26.2x35.8x2.7x
Sun, 31 May 2026US$7.6tUS$2.9tUS$218.8b26x34.8x2.6x
Tue, 28 Apr 2026US$7.5tUS$2.8tUS$220.0b25.8x33.9x2.6x
Thu, 26 Mar 2026US$7.0tUS$2.9tUS$213.4b24.5x32.8x2.4x
Sat, 21 Feb 2026US$7.5tUS$2.8tUS$207.4b27.4x36.2x2.6x
Mon, 19 Jan 2026US$7.0tUS$2.7tUS$209.0b26.1x33.3x2.5x
Wed, 17 Dec 2025US$6.5tUS$2.7tUS$209.7b24.8x30.9x2.4x
Fri, 14 Nov 2025US$6.4tUS$2.7tUS$211.2b23.9x30.3x2.3x
Sun, 12 Oct 2025US$6.2tUS$2.7tUS$210.1b24.1x29.7x2.3x
Tue, 09 Sep 2025US$6.2tUS$2.7tUS$208.3b25x29.7x2.3x
Thu, 07 Aug 2025US$6.2tUS$2.7tUS$208.1b24.1x29.7x2.3x
Sat, 05 Jul 2025US$6.1tUS$2.7tUS$205.2b24.3x29.7x2.3x
Mon, 02 Jun 2025US$5.8tUS$2.7tUS$205.2b22.4x28.1x2.1x
Wed, 30 Apr 2025US$5.2tUS$2.7tUS$204.1b20.7x25.6x2x
Fri, 28 Mar 2025US$5.4tUS$2.7tUS$203.6b21.1x26.7x2x
Sun, 23 Feb 2025US$5.6tUS$2.7tUS$209.4b22.3x26.6x2.1x
Tue, 21 Jan 2025US$5.8tUS$2.7tUS$196.4b24.6x29.5x2.1x
Thu, 19 Dec 2024US$5.7tUS$2.7tUS$198.0b23.1x28.9x2.1x
Sat, 16 Nov 2024US$5.9tUS$2.7tUS$194.6b23.8x30.3x2.2x
Mon, 14 Oct 2024US$5.8tUS$2.7tUS$180.3b23.9x32.1x2.1x
Wed, 11 Sep 2024US$5.3tUS$2.7tUS$179.8b21.3x29.3x2x
Fri, 09 Aug 2024US$5.1tUS$2.7tUS$179.7b21.2x28.2x1.9x
Sun, 07 Jul 2024US$5.1tUS$2.7tUS$170.2b21.2x29.9x1.9x
Tue, 04 Jun 2024US$5.2tUS$2.7tUS$170.0b22.3x30.8x1.9x
Thu, 02 May 2024US$5.1tUS$2.7tUS$170.6b22.1x30.2x1.9x
Sat, 30 Mar 2024US$5.4tUS$2.6tUS$172.6b23.8x31.1x2x
Mon, 26 Feb 2024US$5.1tUS$2.7tUS$175.0b23.2x29.1x1.9x
Wed, 24 Jan 2024US$4.9tUS$2.7tUS$182.9b21.1x26.9x1.8x
Fri, 22 Dec 2023US$4.8tUS$2.7tUS$182.9b21.4x26.4x1.8x
Sun, 19 Nov 2023US$4.5tUS$2.7tUS$181.9b19.3x24.8x1.7x
Tue, 17 Oct 2023US$4.4tUS$2.7tUS$192.7b17.8x23x1.6x
Thu, 14 Sep 2023US$4.5tUS$2.7tUS$189.6b18.1x23.7x1.7x
Sat, 12 Aug 2023US$4.7tUS$2.7tUS$188.8b19x24.7x1.7x
Mon, 10 Jul 2023US$4.5tUS$2.7tUS$185.6b17.9x24.4x1.7x
Price to Earnings Ratio

24.4x


Total Market Cap: US$4.5tTotal Earnings: US$185.6bTotal Revenue: US$2.7tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 29.2x202420252026
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 35.8x which is higher than its 3-year average PE of 29.2x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 5.6% per year over the last three years.
  • Revenues for these companies have grown 2.6% 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 Market1.38%
Industrials-1.75%
Professional Services9.37%
Aerospace & Defense5.18%
Transportation2.95%
Commercial Services2.54%
Logistics0.16%
Marine and Shipping-0.79%
Airlines-0.88%
Infrastructure-1.06%
Trade Distributors-3.22%
Building-4.48%
Electrical-4.53%
Machinery-4.91%
Construction-9.80%
Industrials-32.10%
Industry PE
  • Investors are most optimistic about the Construction industry which is trading above its 3-year average PE ratio of 38.2x.
    • Analysts are expecting annual earnings growth of 24.6%, which is lower than the prior year's growth of 33.2% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 16.9x.
Forecasted Growth
  • Analysts are most optimistic on the Construction industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 33% 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
RTX RTXUS$199.256.8%
+US$17.0b		36.7%PE37x
AXON Axon EnterpriseUS$597.0434.2%
+US$12.3b		-24.9%PE233.6x
RKLB Rocket LabUS$100.4624.5%
+US$11.4b		181.7%PS85.6x
ADP Automatic Data ProcessingUS$242.2712.0%
+US$10.4b		-21.6%PE22.3x
LMT Lockheed MartinUS$545.918.1%
+US$9.4b		18.0%PE26.3x

Latest News

PWR
US$668.31
Quanta Services
7D
-7.0%
1Y
72.9%
RKLB
US$100.46
Rocket Lab
7D
24.5%
1Y
181.7%
VRT
US$300.53
Vertiv Holdings Co
7D
-7.7%
1Y
135.1%
LMT
US$545.91
Lockheed Martin
7D
8.1%
1Y
18.0%
Seeking Alpha • Jul 02

Lockheed Martin: A Great Entry Point In The Defence Industry (Rating Upgrade)

Summary Lockheed Martin is upgraded to Buy as shares retrace to ~$500, offering a more attractive entry after a 20% pullback. Recent $43B+ in new missile and munitions contracts, including sole-source Sentinel A4 and THAAD awards, signal a tangible supply ramp and backlog-to-revenue conversion. LMT's valuation is now compelling, trading at 16.9x forward earnings and a ~5.7% FCF yield, near historical averages and at a discount to peers. Key risks remain: persistent margin pressure from fixed-price contracts and uncertainty around Congressional approval for the $1.5T defense budget and Golden Dome initiative. Read the full article on Seeking Alpha
HONA
US$247.15
Honeywell Aerospace
7D
11.8%
1Y
n/a
BE
US$270.89
Bloom Energy
7D
-12.4%
1Y
1,017.5%
FIX
US$1,741.30
Comfort Systems USA
7D
-13.7%
1Y
221.9%
AXON
US$597.04
Axon Enterprise
7D
34.2%
1Y
-24.9%
RTX
US$199.25
RTX
7D
6.8%
1Y
36.7%
ADP
US$242.27
Automatic Data Processing
7D
12.0%
1Y
-21.6%
HON
US$229.86
Honeywell International
7D
-50.3%
1Y
-52.2%
CAT
US$963.53
Caterpillar
7D
-8.8%
1Y
142.2%
CMI
US$661.70
Cummins
7D
-9.1%
1Y
99.4%
GD
US$373.54
General Dynamics
7D
8.4%
1Y
26.7%
ETN
US$398.52
Eaton
7D
-5.1%
1Y
10.0%
Narrative Update • Jun 26

ETN: AI Data Center Story Will Face Mobility Deal Execution Risks

Analysts have lifted their blended price target for Eaton to about $346 from roughly $329, reflecting updated views on its earnings power, margin profile and valuation multiples following a series of recent research revisions. Analyst Commentary Recent research updates on Eaton highlight a mix of optimism on the earnings and margin story alongside a more restrained tone from some corners of the Street.
UNP
US$282.25
Union Pacific
7D
5.4%
1Y
19.5%