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U.S. Industrials Sector Analysis

UpdatedMar 13, 2026
DataAggregated Company Financials
Companies1053
  • 7D-4.1%
  • 3M4.9%
  • 1Y30.9%
  • YTD3.9%

Over the last 7 days, the Industrials industry has dropped 4.1%, driven by a pullback from General Electric of 6.2%. In contrast, Vertiv Holdings Co has gained 6.3%. In the past year, the industry has gained 31%. 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
Fri, 13 Mar 2026US$7.2tUS$2.9tUS$212.3b24.5x33.9x2.5x
Sun, 08 Feb 2026US$7.4tUS$2.9tUS$208.6b26.8x35.4x2.6x
Tue, 06 Jan 2026US$6.6tUS$2.7tUS$210.3b25.1x31.6x2.4x
Thu, 04 Dec 2025US$6.3tUS$2.7tUS$210.0b24.6x30.2x2.3x
Sat, 01 Nov 2025US$6.4tUS$2.7tUS$210.9b25x30.5x2.4x
Mon, 29 Sep 2025US$6.3tUS$2.7tUS$208.6b24.7x30.1x2.3x
Wed, 27 Aug 2025US$6.2tUS$2.7tUS$209.0b25.2x29.7x2.3x
Fri, 25 Jul 2025US$6.3tUS$2.7tUS$205.3b24.3x30.5x2.3x
Sun, 22 Jun 2025US$5.8tUS$2.7tUS$205.1b22.3x28.2x2.1x
Tue, 20 May 2025US$5.8tUS$2.7tUS$206.5b22.9x28.2x2.2x
Thu, 17 Apr 2025US$5.1tUS$2.7tUS$203.3b19.7x25.2x1.9x
Sat, 15 Mar 2025US$5.2tUS$2.7tUS$204.4b21.2x25.6x2x
Mon, 10 Feb 2025US$5.7tUS$2.7tUS$208.2b24x27.6x2.1x
Wed, 08 Jan 2025US$5.6tUS$2.7tUS$197.7b23.6x28.3x2.1x
Fri, 06 Dec 2024US$6.0tUS$2.7tUS$198.3b24.9x30.4x2.2x
Sun, 03 Nov 2024US$5.6tUS$2.7tUS$193.7b23.2x29.1x2.1x
Tue, 01 Oct 2024US$5.6tUS$2.7tUS$179.6b23.2x31.4x2.1x
Thu, 29 Aug 2024US$5.4tUS$2.7tUS$179.7b22.2x30x2x
Sat, 27 Jul 2024US$5.3tUS$2.7tUS$173.4b22.5x30.4x1.9x
Mon, 24 Jun 2024US$5.2tUS$2.7tUS$170.4b21.4x30.4x1.9x
Wed, 22 May 2024US$5.3tUS$2.7tUS$171.3b22.7x31x2x
Fri, 19 Apr 2024US$5.1tUS$2.7tUS$173.6b22x29.4x1.9x
Sun, 17 Mar 2024US$5.2tUS$2.7tUS$172.4b22.8x30x2x
Tue, 13 Feb 2024US$5.0tUS$2.7tUS$173.4b22.6x28.8x1.9x
Thu, 11 Jan 2024US$4.8tUS$2.7tUS$182.9b20.7x26.5x1.8x
Sat, 09 Dec 2023US$4.7tUS$2.7tUS$182.9b20.2x25.6x1.7x
Mon, 06 Nov 2023US$4.4tUS$2.7tUS$180.3b17.6x24.4x1.6x
Wed, 04 Oct 2023US$4.4tUS$2.7tUS$192.2b17.7x22.7x1.6x
Fri, 01 Sep 2023US$4.6tUS$2.7tUS$189.3b19.3x24.6x1.7x
Sun, 30 Jul 2023US$4.7tUS$2.7tUS$181.5b18.4x25.7x1.7x
Tue, 27 Jun 2023US$4.5tUS$2.7tUS$184.6b17.7x24.2x1.7x
Thu, 25 May 2023US$4.2tUS$2.7tUS$183.2b16.9x22.7x1.6x
Sat, 22 Apr 2023US$4.3tUS$2.7tUS$167.9b18.2x25.5x1.6x
Mon, 20 Mar 2023US$4.0tUS$2.5tUS$159.1b18.3x25x1.6x
Price to Earnings Ratio

25x


Total Market Cap: US$4.0tTotal Earnings: US$159.1bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 28.2x202420252026
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 33.9x which is higher than its 3-year average PE of 28.2x.
  • 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-2.29%
Industrials-4.06%
Construction-0.14%
Electrical-0.39%
Industrials-3.34%
Aerospace & Defense-3.57%
Machinery-4.00%
Commercial Services-4.52%
Infrastructure-4.99%
Logistics-5.14%
Building-5.47%
Professional Services-6.26%
Transportation-6.32%
Marine and Shipping-6.51%
Airlines-7.84%
Trade Distributors-7.92%
Industry PE
  • Investors are most optimistic about the Electrical industry, which is trading close to its 3-year average PE ratio of 63.1x.
    • Analysts are expecting annual earnings growth of 19.6%, which is higher than its past year's earnings growth of 16.7% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 16.1x.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 25% 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 decline by 3.7% 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$265.386.3%
+US$6.0b		219.4%PE76.2x
GEV GE VernovaUS$832.112.1%
+US$4.6b		177.1%PE45.9x
PWR Quanta ServicesUS$566.913.2%
+US$2.6b		126.5%PE82.5x
NXT NextpowerUS$115.9012.1%
+US$1.9b		156.6%PE29.1x
FIX Comfort Systems USAUS$1.37k1.9%
+US$896.9m		319.8%PE47.2x

Latest News

AMPX
US$18.29
Amprius Technologies
7D
22.8%
1Y
921.8%
ODFL
US$176.24
Old Dominion Freight Line
7D
-16.3%
1Y
8.1%
URI
US$733.82
United Rentals
7D
-12.9%
1Y
23.5%
AXON
US$499.40
Axon Enterprise
7D
-12.5%
1Y
-6.6%

From Tasers to SaaS: Axon’s Quiet Platform Transformation

One company I find particularly interesting is Axon Enterprise. Many investors still associate the company primarily with TASER devices, but I think the more compelling part of the story is how Axon has quietly transformed itself into a software and data platform for public safety.
VRT
US$265.38
Vertiv Holdings Co
7D
6.3%
1Y
219.4%
ZTO
US$23.49
ZTO Express (Cayman)
7D
4.8%
1Y
21.0%

ZTO: Future Buybacks And Unit Economics Will Support Upside Potential

Analysts have nudged their price target on ZTO Express (Cayman) slightly higher to $29.03 from $28.84, citing updated fair value work that reflects ongoing share buybacks, a modest FY26 earnings uplift, and improved unit economics. Analyst Commentary Bullish analysts highlight that the latest fair value work leans on factors such as ongoing share buybacks, a 1% uplift to FY26 earnings expectations, and improved unit economics, which they see as supportive for the refreshed US$29.03 price target.
ADP
US$207.45
Automatic Data Processing
7D
-6.8%
1Y
-28.6%

ADP: Dividend Strength And AI HR Execution Will Support Premium P/E

Analysts have trimmed their average price target on Automatic Data Processing by about $5 to $272. This reflects slightly softer revenue growth assumptions, a modestly higher discount rate, and only a small adjustment to long term P/E expectations, despite relatively steady margin forecasts.
UNP
US$244.10
Union Pacific
7D
-6.2%
1Y
4.2%

UNP: Merger Synergies And Rail Infrastructure Resilience Will Shape Forward Outlook

The updated analyst price target for Union Pacific edges higher, with our fair value estimate moving from $266.08 to $272.21 as analysts factor in potential cost synergies from the proposed Norfolk Southern merger, sustained operating performance across the rail group, and the appeal of hard to replicate rail infrastructure. Analyst Commentary Recent Street research on Union Pacific clusters around two big themes: the proposed Norfolk Southern merger and the value the market places on irreplaceable rail infrastructure.
BA
US$204.76
Boeing
7D
-7.8%
1Y
28.5%
GEV
US$832.11
GE Vernova
7D
2.1%
1Y
177.1%

GEV: Long Term Equipment Contracts Will Support Stronger Future Returns

Analysts have lifted their price target on GE Vernova to $1,019, reflecting slightly updated assumptions on discount rate, revenue growth, profit margin, and future P/E that support a steady valuation framework. What's in the News OPC Energy agreed to purchase main equipment from GE Vernova for the Hadera 2 natural gas power project in Israel, covering gas and steam turbines, auxiliary systems, and a maintenance agreement.
FIX
US$1,373.76
Comfort Systems USA
7D
1.9%
1Y
319.8%

FIX: Texas Data Center Exposure And Modular Strength Will Support Future P/E Repricing

Analysts have raised their price target on Comfort Systems USA to $1,800 from $1,200, citing the company's exposure to Texas data center construction, its modular capabilities, and support from recent earnings as key drivers behind the reassessment. Analyst Commentary Bullish analysts are clustering around higher valuation ranges for Comfort Systems USA, pointing to recent earnings, data center exposure in Texas, and the company’s modular capabilities as the core reasons for revisiting their models.
PH
US$902.17
Parker-Hannifin
7D
-6.6%
1Y
52.5%

PH: Updated Guidance And Share Repurchases Will Support A Measured Outlook

Analysts have nudged their price target for Parker Hannifin higher to around $1,031 from about $1,018, reflecting updated assumptions that include a slightly lower discount rate, a more conservative revenue growth outlook, a higher profit margin, and a modestly higher future P/E multiple. What's in the News Parker-Hannifin updated its earnings guidance for the fiscal year ending June 30, 2026, with reported sales growth now framed in a range of 5.5% to 7.5% and organic sales growth around 5% at the midpoint, along with contributions from acquisitions, divestitures, and favorable currency effects (Key Developments).
NXT
US$115.90
Nextpower
7D
12.1%
1Y
156.6%
KTOS
US$89.46
Kratos Defense & Security Solutions
7D
4.6%
1Y
203.0%

KTOS: Unmanned Systems Momentum And Execution Risks Will Shape Fairly Valued Outlook

Our fair value estimate for Kratos Defense & Security Solutions has been lifted by $2 to $85, as analysts factor in higher long term revenue growth expectations tied to DRSS and unmanned systems demand, while also recognizing a richer projected P/E multiple and slightly lower margin outlook. Analyst Commentary Recent Street research around Kratos Defense & Security Solutions reflects a mix of optimism on long term growth opportunities and concern about how much of that growth is already reflected in the share price.
PWR
US$566.91
Quanta Services
7D
3.2%
1Y
126.5%

PWR: Power Supercycle And Record Backlog Will Drive Future Infrastructure Wins

Our updated fair value estimate for Quanta Services rises from $548 to $685, reflecting analysts' higher price targets following strong Q4 results, record backlog, and expectations for sustained earnings growth across key power infrastructure markets. Analyst Commentary Recent research updates show a wave of higher valuation work on Quanta Services following Q4 results, with several bullish analysts lifting price targets and, in some cases, ratings, as they factor in the latest guidance, record backlog, and earnings trajectory.
GE
US$306.70
General Electric
7D
-6.2%
1Y
59.4%

GE: Aerospace Moat And Long Cycle Services Will Drive Future Returns

The analyst fair value estimate for General Electric has moved from $394.00 to about $424.14 as analysts factor in a higher assumed revenue growth rate, a modestly different discount rate, and Street research highlighting GE Aerospace as a "best in class" operator with a deep competitive moat in a long cycle industry. Analyst Commentary Recent Street research on General Electric, and specifically GE Aerospace, has leaned constructive, with several bullish analysts updating their views around quality of execution, earnings power, and cash generation.