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U.S. Industrials Sector Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies1066
  • 7D1.8%
  • 3M9.6%
  • 1Y23.4%
  • YTD7.1%

Over the last 7 days, the Industrials industry has risen 1.8%, driven by gains from Caterpillar of 10%. Meanwhile, Axon Enterprise actually underperformed within the industry, shrinking 26% in the last week. This means that the industry has gained 23% over the past year. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 05 Feb 2026US$7.1tUS$2.9tUS$214.0b26.1x33.3x2.5x
Sat, 03 Jan 2026US$6.4tUS$2.7tUS$210.3b24.4x30.4x2.3x
Mon, 01 Dec 2025US$6.4tUS$2.7tUS$209.8b24.4x30.4x2.3x
Wed, 29 Oct 2025US$6.5tUS$2.7tUS$210.4b26.1x30.8x2.4x
Fri, 26 Sep 2025US$6.3tUS$2.7tUS$208.5b24.2x30.1x2.3x
Sun, 24 Aug 2025US$6.3tUS$2.7tUS$209.0b24.8x30x2.3x
Tue, 22 Jul 2025US$6.2tUS$2.7tUS$206.1b23.8x29.9x2.3x
Thu, 19 Jun 2025US$5.8tUS$2.7tUS$205.1b22.5x28.2x2.1x
Sat, 17 May 2025US$5.8tUS$2.7tUS$205.8b23.1x28x2.1x
Mon, 14 Apr 2025US$5.1tUS$2.7tUS$203.5b19.9x25x1.9x
Wed, 12 Mar 2025US$5.4tUS$2.7tUS$203.0b21.1x26.4x2x
Fri, 07 Feb 2025US$5.7tUS$2.7tUS$208.2b24.3x27.6x2.1x
Sun, 05 Jan 2025US$5.6tUS$2.7tUS$197.7b23.8x28.3x2.1x
Tue, 03 Dec 2024US$6.1tUS$2.7tUS$197.2b25.1x30.8x2.2x
Thu, 31 Oct 2024US$5.7tUS$2.7tUS$189.7b23.4x30x2.1x
Sat, 28 Sep 2024US$5.6tUS$2.7tUS$179.6b23x31.3x2.1x
Mon, 26 Aug 2024US$5.4tUS$2.7tUS$179.6b22.6x30x2x
Wed, 24 Jul 2024US$5.4tUS$2.7tUS$169.9b22.9x31.5x2x
Fri, 21 Jun 2024US$5.2tUS$2.7tUS$170.5b21.2x30.4x1.9x
Sun, 19 May 2024US$5.3tUS$2.7tUS$171.4b22.7x31x2x
Tue, 16 Apr 2024US$5.2tUS$2.7tUS$173.8b22.5x30x1.9x
Thu, 14 Mar 2024US$5.2tUS$2.7tUS$172.0b23x30.2x2x
Sat, 10 Feb 2024US$5.0tUS$2.7tUS$173.3b22.5x28.7x1.9x
Mon, 08 Jan 2024US$4.8tUS$2.7tUS$182.9b20.8x26.3x1.8x
Wed, 06 Dec 2023US$4.7tUS$2.7tUS$182.5b19.7x25.8x1.7x
Fri, 03 Nov 2023US$4.3tUS$2.7tUS$180.6b17.3x23.5x1.6x
Sun, 01 Oct 2023US$4.4tUS$2.7tUS$192.2b17.9x22.9x1.6x
Tue, 29 Aug 2023US$4.6tUS$2.7tUS$189.4b18.7x24.1x1.7x
Thu, 27 Jul 2023US$4.7tUS$2.7tUS$183.3b18.4x25.6x1.7x
Sat, 24 Jun 2023US$4.4tUS$2.7tUS$184.5b17.6x24x1.7x
Mon, 22 May 2023US$4.3tUS$2.7tUS$183.9b17x23.1x1.6x
Wed, 19 Apr 2023US$4.3tUS$2.6tUS$166.9b18.2x25.7x1.6x
Fri, 17 Mar 2023US$4.0tUS$2.6tUS$159.2b17.9x24.9x1.5x
Sun, 12 Feb 2023US$4.2tUS$2.5tUS$160.6b19.2x25.9x1.6x
Price to Earnings Ratio

25.9x


Total Market Cap: US$4.2tTotal Earnings: US$160.6bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 27.9x202420252026
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 33.3x which is higher than its 3-year average PE of 27.9x.
  • The 3-year average PS ratio of 2.0x 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 10% per year over the last three years.
  • Revenues for these companies have grown 4.0% 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-1.35%
Industrials1.84%
Logistics7.22%
Airlines6.67%
Electrical6.11%
Building6.00%
Machinery4.80%
Industrials2.20%
Construction1.91%
Transportation1.74%
Infrastructure1.51%
Trade Distributors0.97%
Marine and Shipping0.15%
Aerospace & Defense-0.56%
Commercial Services-1.43%
Professional Services-7.77%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 61.9x.
    • Analysts are expecting annual earnings growth of 19.5%, which is higher than its past year's earnings growth of 14.4% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 15.8x.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 34% 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 grow by 3.5% 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
CAT CaterpillarUS$691.827.5%
+US$22.7b		92.8%PE36.4x
GE General ElectricUS$308.345.4%
+US$16.6b		50.7%PE37.6x
UNP Union PacificUS$249.769.7%
+US$13.1b		2.2%PE20.8x
HON Honeywell InternationalUS$235.358.6%
+US$11.9b		5.8%PE30.9x
DE DeereUS$567.268.0%
+US$11.5b		21.3%PE30.6x

Latest News

TDG
US$1,264.79
TransDigm Group
7D
-10.4%
1Y
-2.1%
TT
US$441.20
Trane Technologies
7D
11.9%
1Y
23.3%
DE
US$567.26
Deere
7D
8.0%
1Y
21.3%
UBER
US$73.92
Uber Technologies
7D
-7.3%
1Y
14.6%
CAT
US$691.82
Caterpillar
7D
7.5%
1Y
92.8%
FDX
US$362.54
FedEx
7D
15.2%
1Y
43.6%

FDX: Cost Actions And Network Modernization Will Support Balanced Long Term Earnings Potential

Analysts have raised their FedEx fair value estimate to $365 from $360, reflecting updated views on revenue growth potential, a slightly lower discount rate, and a modestly higher future P/E assumption, while profit margin expectations remain broadly unchanged. Analyst Commentary Recent Street research on FedEx is mixed, but there is a clear pocket of optimism from bullish analysts who have raised price targets and issued upgrades.
HON
US$235.35
Honeywell International
7D
8.6%
1Y
5.8%

HON: Execution Risk And 2026 Guidance Tone May Cap Further Upside

The analyst price target for Honeywell International has been raised by $3 to $198, with analysts generally citing updated assumptions for discount rates, P/E expectations, and margin and growth inputs in their valuation work. Analyst Commentary Recent research updates on Honeywell International show a mix of optimism and caution, with several firms adjusting price targets and at least one high profile upgrade from JPMorgan.
AXON
US$430.65
Axon Enterprise
7D
-21.7%
1Y
-36.7%

AXON: Expanding Public Safety Market Will Test Execution On New Cross Sell Opportunities

Analysts trimmed their Axon Enterprise fair value estimate by about US$3 to roughly US$640, reflecting updated assumptions for revenue growth, margins, and future P/E that incorporate recent ratings changes and mixed reactions to quarterly results. Analyst Commentary Recent research views on Axon Enterprise show a split between more optimistic and more cautious voices, with mixed reactions to the latest quarter feeding through to valuation updates and ratings changes.
GE
US$308.34
General Electric
7D
5.4%
1Y
50.7%

GE: Aerospace Order Wins And Buybacks Will Support Stronger Future Profits

Analysts have lifted their implied fair value estimate for General Electric shares from US$339.69 to US$357.24. This reflects updated assumptions around slightly higher revenue growth, a modestly lower discount rate, and recent price target moves across the Street for GE Aerospace.
RKLB
US$73.11
Rocket Lab
7D
-17.5%
1Y
155.6%
UPS
US$116.74
United Parcel Service
7D
12.6%
1Y
4.3%
UNP
US$249.76
Union Pacific
7D
9.7%
1Y
2.2%
ADP
US$234.67
Automatic Data Processing
7D
-6.4%
1Y
-23.8%
BE
US$147.35
Bloom Energy
7D
-10.9%
1Y
507.4%
BA
US$235.95
Boeing
7D
-2.3%
1Y
29.8%
VRT
US$182.56
Vertiv Holdings Co
7D
-5.8%
1Y
53.4%

VRT: Expanded Partnerships And Dividend Increase Will Drive Further Upside Potential

Narrative Update Overview Analysts now see Vertiv Holdings Co. with a refreshed price framework, reflected in a higher implied fair value from about US$230.00 to roughly US$245.20. This adjustment is tied to updated assumptions for revenue growth, profit margins, discount rate and future P/E levels.