Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Industrials Sector Analysis

UpdatedFeb 07, 2026
DataAggregated Company Financials
Companies1063
  • 7D4.7%
  • 3M13.0%
  • 1Y26.4%
  • YTD9.9%

Last week, the Industrials industry hasn't moved much but Union Pacific is up 7.7% in that time. The past year has been better, since the industry has gained 22% in that time. 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
Sat, 07 Feb 2026US$7.2tUS$2.9tUS$208.6b26.8x34.3x2.5x
Mon, 05 Jan 2026US$6.5tUS$2.7tUS$210.3b24.4x31.1x2.4x
Wed, 03 Dec 2025US$6.3tUS$2.7tUS$209.8b24.2x30x2.3x
Fri, 31 Oct 2025US$6.5tUS$2.7tUS$210.2b25.5x30.8x2.4x
Sun, 28 Sep 2025US$6.3tUS$2.7tUS$208.6b24.7x30.1x2.3x
Tue, 26 Aug 2025US$6.2tUS$2.7tUS$209.0b24.7x29.8x2.3x
Thu, 24 Jul 2025US$6.1tUS$2.7tUS$206.2b24.4x29.8x2.3x
Sat, 21 Jun 2025US$5.8tUS$2.7tUS$205.1b22.3x28.2x2.1x
Mon, 19 May 2025US$5.8tUS$2.7tUS$206.1b23.1x28.2x2.2x
Wed, 16 Apr 2025US$5.1tUS$2.7tUS$202.8b20x25.4x1.9x
Fri, 14 Mar 2025US$5.3tUS$2.7tUS$204.5b20.6x25.9x2x
Sun, 09 Feb 2025US$5.7tUS$2.7tUS$208.2b24x27.6x2.1x
Tue, 07 Jan 2025US$5.6tUS$2.7tUS$197.7b23.8x28.2x2x
Thu, 05 Dec 2024US$6.0tUS$2.7tUS$198.2b25.2x30.3x2.2x
Sat, 02 Nov 2024US$5.6tUS$2.7tUS$193.8b23.2x29x2.1x
Mon, 30 Sep 2024US$5.6tUS$2.7tUS$179.6b23.1x31.4x2.1x
Wed, 28 Aug 2024US$5.4tUS$2.7tUS$179.7b22.5x30x2x
Fri, 26 Jul 2024US$5.2tUS$2.7tUS$170.0b22.5x30.7x1.9x
Sun, 23 Jun 2024US$5.2tUS$2.7tUS$170.4b21.4x30.4x1.9x
Tue, 21 May 2024US$5.3tUS$2.7tUS$171.4b22.8x31x2x
Thu, 18 Apr 2024US$5.1tUS$2.7tUS$173.8b22.2x29.4x1.9x
Sat, 16 Mar 2024US$5.2tUS$2.7tUS$172.4b22.8x30x1.9x
Mon, 12 Feb 2024US$5.0tUS$2.7tUS$173.4b22.7x28.7x1.9x
Wed, 10 Jan 2024US$4.8tUS$2.7tUS$182.9b20.8x26.5x1.8x
Fri, 08 Dec 2023US$4.7tUS$2.7tUS$182.9b20x25.5x1.7x
Sun, 05 Nov 2023US$4.4tUS$2.7tUS$180.3b17.6x24.4x1.6x
Tue, 03 Oct 2023US$4.4tUS$2.7tUS$192.2b17.9x22.8x1.6x
Thu, 31 Aug 2023US$4.7tUS$2.7tUS$189.3b19.3x24.6x1.7x
Sat, 29 Jul 2023US$4.7tUS$2.7tUS$181.5b18.4x25.7x1.7x
Mon, 26 Jun 2023US$4.4tUS$2.7tUS$184.5b17.6x24x1.7x
Wed, 24 May 2023US$4.2tUS$2.7tUS$183.2b17x23x1.6x
Fri, 21 Apr 2023US$4.3tUS$2.7tUS$167.8b18.2x25.5x1.6x
Sun, 19 Mar 2023US$3.9tUS$2.5tUS$157.1b17.7x24.7x1.5x
Tue, 14 Feb 2023US$4.2tUS$2.5tUS$160.6b19.3x26.1x1.6x
Price to Earnings Ratio

26.1x


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 34.6x 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 9.0% per year over the last three years.
  • Revenues for these companies have grown 3.9% 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-0.12%
Industrials4.69%
Airlines13.50%
Building10.43%
Logistics9.78%
Trade Distributors8.53%
Machinery8.00%
Industrials7.29%
Construction6.21%
Electrical4.76%
Transportation4.49%
Commercial Services1.66%
Aerospace & Defense1.13%
Marine and Shipping-0.41%
Infrastructure-2.29%
Professional Services-3.99%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 62.0x.
    • Analysts are expecting annual earnings growth of 19.2%, which is higher than its past year's earnings growth of 13.2% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 15.9x.
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 3.7% 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
CAT CaterpillarUS$726.2010.5%
+US$32.2b		99.6%PE38.3x
DE DeereUS$583.1110.4%
+US$14.9b		25.2%PE31.4x
GE General ElectricUS$321.004.6%
+US$14.9b		56.4%PE39.1x
GEV GE VernovaUS$779.357.3%
+US$14.3b		106.2%PE43x
JCI Johnson Controls InternationalUS$137.6515.4%
+US$11.3b		57.0%PE44x

Latest News

JCI
US$137.65
Johnson Controls International
7D
15.4%
1Y
57.0%
UBER
US$74.77
Uber Technologies
7D
-6.6%
1Y
0.2%
UNP
US$252.62
Union Pacific
7D
7.5%
1Y
4.4%
VRSK
US$179.10
Verisk Analytics
7D
-17.6%
1Y
-39.0%
MMM
US$172.65
3M
7D
12.7%
1Y
15.2%

MMM: Turnaround Prospects Will Be Tested By PFAS Litigation And Mixed Street Expectations

The analyst price target on 3M has been revised slightly higher to about $177 from $174, as analysts adjust their models for small changes in fair value, discount rate, revenue growth, profit margin, and future P/E assumptions following a mix of recent target increases and cuts across major firms. Analyst Commentary Recent Street research on 3M has been mixed, with several firms adjusting their price targets in both directions and one major downgrade.
CAT
US$726.20
Caterpillar
7D
10.5%
1Y
99.6%

CAT: Data Center Engine Reliance Will Likely Erode Future Return Expectations

The analyst price target for Caterpillar has moved higher from about US$393 to roughly US$475, with analysts pointing to updated assumptions for slightly stronger profit margins, a higher future P/E multiple, and ongoing support from data center driven engine demand. Analyst Commentary Across recent research, the tone around Caterpillar has leaned constructive, with a cluster of firms lifting their price targets by wide ranges, from around US$15 to as high as US$125.
FDX
US$369.23
FedEx
7D
14.6%
1Y
44.2%
TDG
US$1,285.53
TransDigm Group
7D
-9.9%
1Y
-3.1%
DE
US$583.11
Deere
7D
10.4%
1Y
25.2%
RKLB
US$72.32
Rocket Lab
7D
-9.7%
1Y
163.8%

RKLB: Launch Execution And Space Systems Mix Will Drive Long-Term Upside

Analysts have nudged their Rocket Lab price targets higher by about $20 to $60, citing a mix of higher targets from BofA, Goldman Sachs, Morgan Stanley and Stifel, partially offset by a KeyBanc downgrade that argues much of the growth story is already well known. Analyst Commentary Recent research on Rocket Lab reflects a split view, with bullish analysts lifting targets and highlighting execution on both launch and space systems, while others flag timeline and valuation risks.
GEV
US$779.35
GE Vernova
7D
7.3%
1Y
106.2%
AXON
US$414.20
Axon Enterprise
7D
-14.3%
1Y
-39.0%

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$321.00
General Electric
7D
4.6%
1Y
56.4%

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.
RTX
US$198.66
RTX
7D
-1.1%
1Y
55.3%
ADP
US$231.36
Automatic Data Processing
7D
-6.3%
1Y
-24.4%
PHOE
US$13.71
Phoenix Asia Holdings
7D
-89.7%
1Y
n/a