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U.S. Industrials Sector Analysis

UpdatedMay 16, 2026
DataAggregated Company Financials
Companies1066
  • 7D-1.4%
  • 3M-0.4%
  • 1Y23.7%
  • YTD9.9%

Over the last 7 days, the Industrials industry has dropped 1.4%, driven by a pullback from General Electric of 5.3%. Meanwhile, Vertiv Holdings Co actually outperformed within the industry, gaining 9.1% in the last week. Over the past 12 months, the industry was up 24%. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 May 2026US$7.6tUS$2.9tUS$219.9b24.8x34.6x2.6x
Mon, 13 Apr 2026US$7.3tUS$2.8tUS$214.2b25.5x34.1x2.6x
Wed, 11 Mar 2026US$7.3tUS$2.9tUS$212.2b25x34.2x2.5x
Fri, 06 Feb 2026US$7.2tUS$2.8tUS$208.0b25.9x34.6x2.5x
Sun, 04 Jan 2026US$6.5tUS$2.7tUS$210.3b24.4x31.1x2.4x
Tue, 02 Dec 2025US$6.4tUS$2.7tUS$209.8b24.1x30.4x2.3x
Thu, 30 Oct 2025US$6.4tUS$2.7tUS$209.9b25.4x30.7x2.4x
Sat, 27 Sep 2025US$6.2tUS$2.7tUS$208.6b24.7x29.9x2.3x
Mon, 25 Aug 2025US$6.3tUS$2.7tUS$209.0b24.9x30x2.3x
Wed, 23 Jul 2025US$6.1tUS$2.7tUS$206.2b23.8x29.7x2.3x
Fri, 20 Jun 2025US$5.8tUS$2.7tUS$205.1b22.5x28.2x2.1x
Sun, 18 May 2025US$5.8tUS$2.7tUS$205.8b23.1x28.3x2.2x
Tue, 15 Apr 2025US$5.1tUS$2.7tUS$203.4b20.1x25.1x1.9x
Thu, 13 Mar 2025US$5.3tUS$2.7tUS$204.3b20.8x25.9x2x
Sat, 08 Feb 2025US$5.8tUS$2.7tUS$208.2b24x27.7x2.1x
Mon, 06 Jan 2025US$5.6tUS$2.7tUS$197.7b23.8x28.3x2.1x
Wed, 04 Dec 2024US$6.0tUS$2.7tUS$198.2b25.1x30.5x2.2x
Fri, 01 Nov 2024US$5.6tUS$2.7tUS$193.3b23.2x29.1x2.1x
Sun, 29 Sep 2024US$5.6tUS$2.7tUS$179.6b23.1x31.4x2.1x
Tue, 27 Aug 2024US$5.4tUS$2.7tUS$179.6b22.5x30.1x2x
Thu, 25 Jul 2024US$5.3tUS$2.7tUS$168.9b22.3x31.6x2x
Sat, 22 Jun 2024US$5.2tUS$2.7tUS$170.4b21.3x30.4x1.9x
Mon, 20 May 2024US$5.3tUS$2.7tUS$171.4b22.7x31x2x
Wed, 17 Apr 2024US$5.2tUS$2.7tUS$173.6b22.2x29.8x1.9x
Fri, 15 Mar 2024US$5.2tUS$2.7tUS$171.9b22.7x30.3x2x
Sun, 11 Feb 2024US$5.0tUS$2.7tUS$173.4b22.7x28.7x1.9x
Tue, 09 Jan 2024US$4.8tUS$2.7tUS$182.9b21x26.3x1.8x
Thu, 07 Dec 2023US$4.7tUS$2.7tUS$183.0b19.6x25.5x1.7x
Sat, 04 Nov 2023US$4.4tUS$2.7tUS$180.9b17.6x24.3x1.6x
Mon, 02 Oct 2023US$4.4tUS$2.7tUS$192.2b17.9x22.9x1.6x
Wed, 30 Aug 2023US$4.6tUS$2.7tUS$189.4b19.2x24.5x1.7x
Fri, 28 Jul 2023US$4.7tUS$2.7tUS$183.2b18.4x25.7x1.7x
Sun, 25 Jun 2023US$4.4tUS$2.7tUS$184.5b17.6x24x1.7x
Tue, 23 May 2023US$4.3tUS$2.7tUS$183.0b17.2x23.3x1.6x
Price to Earnings Ratio

23.3x


Total Market Cap: US$4.3tTotal Earnings: US$183.0bTotal Revenue: US$2.7tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 28.8x202420252026
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 34.6x which is higher than its 3-year average PE of 28.8x.
  • The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 6.3% 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 Market-0.92%
Industrials-1.38%
Electrical1.20%
Industrials0.80%
Transportation0.65%
Commercial Services0.23%
Construction0.096%
Marine and Shipping-1.26%
Trade Distributors-1.27%
Logistics-2.06%
Building-2.48%
Machinery-2.61%
Aerospace & Defense-2.67%
Professional Services-3.21%
Airlines-5.44%
Infrastructure-5.75%
Industry PE
  • Investors are most optimistic about the Construction industry which is trading above its 3-year average PE ratio of 37.3x.
    • Analysts are expecting annual earnings growth of 23.7%, which is lower than the prior year's growth of 30.4% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 16.5x.
Forecasted Growth
  • Analysts are most optimistic on the Construction industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 30% per year.
  • In contrast, the Marine and Shipping industry is expected to see its earnings grow by 2.3% 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
VRT Vertiv Holdings CoUS$370.949.1%
+US$11.9b		249.8%PE91.4x
RKLB Rocket LabUS$124.7718.3%
+US$11.2b		388.0%PS106.3x
BE Bloom EnergyUS$275.955.7%
+US$4.2b		1,272.2%PE13010.5x
PWR Quanta ServicesUS$769.993.4%
+US$3.8b		123.3%PE104.6x
UNP Union PacificUS$270.562.2%
+US$3.5b		16.9%PE22.3x

Latest News

HWM
US$260.35
Howmet Aerospace
7D
-3.8%
1Y
59.9%
UNP
US$270.56
Union Pacific
7D
2.2%
1Y
16.9%
NXT
US$144.29
Nextpower
7D
14.6%
1Y
143.3%
Narrative Update • May 15

NXT: U.S. Manufacturing And Data Partnerships Will Support Balanced Long Term Opportunity

Analysts have lifted their price target for Nextpower from $121.74 to $142.04, citing updated assumptions that include higher projected revenue growth, a slightly stronger profit margin, a modestly higher discount rate, and a richer future P/E multiple. What's in the News Updated fiscal 2027 guidance: Nextpower now expects revenue of $3.8b to $4.1b, GAAP net income of $501 million to $559 million, and GAAP diluted EPS of $3.19 to $3.56 for the year (Corporate guidance).
BA
US$220.49
Boeing
7D
-7.1%
1Y
7.1%
Narrative Update • May 15

BA: New Fleet Orders And Defense Programs Will Drive Future Upside

Analysts have nudged their price target for Boeing slightly higher, from $268.96 to $269.52, reflecting updated assumptions around discount rate, revenue growth, profit margin, and future P/E. Taken together, these factors point to only a marginal shift in the stock's assessed fair value.
VRT
US$370.94
Vertiv Holdings Co
7D
9.1%
1Y
249.8%
RTX
US$171.18
RTX
7D
-2.8%
1Y
26.4%
Narrative Update • May 14

RTX: Defense And Engine Upgrades Will Support Higher Future Expectations

RTX's analyst price target has moved slightly, with a modest adjustment of less than $1 as analysts factor in updated assumptions on discount rates, revenue growth, profit margins and future P/E expectations following a mix of recent downgrades, target cuts and one upgrade across the Street. Analyst Commentary Recent research on RTX shows a mix of optimism and caution, with several firms adjusting ratings and targets as they update their views on the stock's execution risk, growth profile and valuation assumptions.
EMR
US$133.05
Emerson Electric
7D
-5.8%
1Y
10.3%
DE
US$561.83
Deere
7D
-2.3%
1Y
5.7%
Seeking Alpha • May 14

Deere: I Would Take The Gains (Q1 Earnings Preview)

Summary Caterpillar outperformed Deere over the past year, driven by AI-related power generator demand and manufacturing reshoring tailwinds. I have maintained a neutral rating on Deere, as its returns have largely tracked the broader market without clear outperformance. Upcoming Deere earnings are a key catalyst; I will reassess my rating based on reported results and forward outlook. Manufacturing sector momentum, fueled by data center buildout and reshoring, remains a central theme impacting both CAT and DE. Read the full article on Seeking Alpha
GEV
US$1,049.23
GE Vernova
7D
0.9%
1Y
145.1%
Seeking Alpha • May 14

GE Vernova: Why I Believe This Power Infrastructure Winner Has 60% Upside

Summary I am rating GE Vernova a Strong Buy because I believe the AI infrastructure trade is shifting from chips to electricity and sits inside that bottleneck through its portfolio. The main growth drivers are Power and Electrification. My model assumes 2028 Power EBITDA of $8Bn and 2028 Electrification EBITDA of $6.1Bn, helped by backlog growth, pricing and data-center demand. My price target is $1,717 per share implying a 60% potential upside. The PT is based on $13.7Bn of 2028 adjusted EBITDA and a 34x EBITDA multiple. The biggest risk is valuation compression if Power and Electrification growth disappoints. Still, I believe that the the risk-reward remains attractive. Read the full article on Seeking Alpha
CAT
US$888.31
Caterpillar
7D
-1.0%
1Y
151.2%
Seeking Alpha • May 14

Caterpillar: A Masterclass In Execution Meeting An Irrationally Exuberant Valuation

Summary Caterpillar is trading at a significant valuation premium, with a forward P/FCF of 43, nearly triple its five-year average. Current momentum is driven by surging data center demand, a record $62.7 billion backlog, and strong double-digit revenue growth outlook. Despite operational excellence and reduced volatility, CAT’s capital-intensive, cyclical nature makes its software-like multiple unsustainable long-term. I require a 30-50% stock price contraction before CAT offers a margin of safety aligned with its industrial fundamentals. Read the full article on Seeking Alpha
RKLB
US$124.77
Rocket Lab
7D
18.3%
1Y
388.0%
GE
US$281.53
General Electric
7D
-5.3%
1Y
21.5%
Narrative Update • May 13

GE: Repair Automation And Defense Programs Will Support Future Cash Generation

Analysts trimmed their consolidated price target for General Electric by $10 to $350. This reflects slightly higher discount rate assumptions, modestly lower revenue growth and profit margin expectations, and a small upward adjustment to the future P/E multiple following recent updates to GE Aerospace research coverage.
PWR
US$769.99
Quanta Services
7D
3.4%
1Y
123.3%
RSG
US$208.32
Republic Services
7D
4.1%
1Y
-15.9%
BE
US$275.95
Bloom Energy
7D
5.7%
1Y
1,272.2%
TDG
US$1,148.97
TransDigm Group
7D
-5.4%
1Y
-19.3%