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U.S. Industrials Sector Analysis

UpdatedJan 15, 2026
DataAggregated Company Financials
Companies1072
  • 7D3.4%
  • 3M7.7%
  • 1Y21.0%
  • YTD4.6%

Over the last 7 days, the Industrials industry has risen 3.4%, and Caterpillar contributed the most with a gain of 7.1%. In the last 12 months, the industry was up 21%. 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, 15 Jan 2026US$6.8tUS$2.7tUS$209.3b25.7x32.6x2.5x
Sat, 13 Dec 2025US$6.6tUS$2.7tUS$209.6b25.1x31.3x2.4x
Mon, 10 Nov 2025US$6.4tUS$2.7tUS$211.1b24.3x30.1x2.3x
Wed, 08 Oct 2025US$6.5tUS$2.7tUS$209.9b24.7x30.8x2.4x
Fri, 05 Sep 2025US$6.1tUS$2.7tUS$209.7b25.2x29.2x2.3x
Sun, 03 Aug 2025US$6.1tUS$2.7tUS$210.0b23.6x29x2.3x
Tue, 01 Jul 2025US$6.0tUS$2.7tUS$205.3b23.1x29.1x2.2x
Thu, 29 May 2025US$5.8tUS$2.7tUS$206.3b22.3x28.1x2.2x
Sat, 26 Apr 2025US$5.2tUS$2.7tUS$204.6b20.7x25.6x1.9x
Mon, 24 Mar 2025US$5.4tUS$2.7tUS$203.4b21.2x26.3x2x
Wed, 19 Feb 2025US$5.7tUS$2.7tUS$208.3b23.6x27.5x2.1x
Fri, 17 Jan 2025US$5.7tUS$2.7tUS$196.5b24.5x29.1x2.1x
Sun, 15 Dec 2024US$5.8tUS$2.7tUS$198.3b24.2x29.2x2.1x
Tue, 12 Nov 2024US$6.0tUS$2.7tUS$193.9b25.4x30.9x2.2x
Thu, 10 Oct 2024US$5.7tUS$2.7tUS$179.9b23.5x31.5x2.1x
Sat, 07 Sep 2024US$5.2tUS$2.7tUS$179.9b21.1x28.9x1.9x
Mon, 05 Aug 2024US$5.1tUS$2.7tUS$179.7b21.8x28.6x1.9x
Wed, 03 Jul 2024US$5.1tUS$2.7tUS$170.5b21.1x29.8x1.9x
Fri, 31 May 2024US$5.2tUS$2.7tUS$169.9b22.8x30.5x1.9x
Sun, 28 Apr 2024US$5.2tUS$2.7tUS$169.3b22.6x30.7x1.9x
Tue, 26 Mar 2024US$5.3tUS$2.7tUS$172.7b23.2x30.8x2x
Thu, 22 Feb 2024US$5.0tUS$2.7tUS$174.0b23x28.7x1.9x
Sat, 20 Jan 2024US$4.9tUS$2.7tUS$184.2b20.7x26.3x1.8x
Mon, 18 Dec 2023US$4.9tUS$2.7tUS$182.7b21.2x26.6x1.8x
Wed, 15 Nov 2023US$4.4tUS$2.7tUS$184.9b19.2x23.8x1.6x
Fri, 13 Oct 2023US$4.5tUS$2.7tUS$192.6b17.9x23.3x1.7x
Sun, 10 Sep 2023US$4.5tUS$2.7tUS$189.3b18.3x23.8x1.7x
Tue, 08 Aug 2023US$4.7tUS$2.7tUS$190.6b19.1x24.8x1.7x
Thu, 06 Jul 2023US$4.5tUS$2.7tUS$185.6b18.1x24.5x1.7x
Sat, 03 Jun 2023US$4.3tUS$2.7tUS$182.9b17.6x23.5x1.6x
Mon, 01 May 2023US$4.2tUS$2.7tUS$174.6b17.7x24.3x1.6x
Wed, 29 Mar 2023US$4.2tUS$2.6tUS$166.1b18.3x25.2x1.6x
Fri, 24 Feb 2023US$4.1tUS$2.6tUS$161.4b19x25.4x1.6x
Sun, 22 Jan 2023US$4.0tUS$2.5tUS$156.3b18.2x25.8x1.6x
Price to Earnings Ratio

25.8x


Total Market Cap: US$4.0tTotal Earnings: US$156.3bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 27.8x202420252026
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 32.6x which is higher than its 3-year average PE of 27.8x.
  • The 3-year average PS ratio of 1.9x 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 2.8% 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 Market0.18%
Industrials3.36%
Aerospace & Defense5.90%
Industrials5.54%
Trade Distributors5.14%
Building4.91%
Machinery4.85%
Logistics2.53%
Commercial Services2.47%
Electrical1.80%
Marine and Shipping1.20%
Construction0.96%
Professional Services0.12%
Transportation0.0039%
Infrastructure-1.87%
Airlines-3.44%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 60.9x.
    • Analysts are expecting annual earnings growth of 22.2%, which is higher than its past year's earnings growth of 16.6% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 15.7x.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 38% 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 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
CAT CaterpillarUS$638.757.1%
+US$19.8b		70.4%PE32.2x
RTX RTXUS$198.847.1%
+US$17.6b		67.0%PE40.4x
LMT Lockheed MartinUS$572.7015.3%
+US$17.5b		18.3%PE31.6x
BA BoeingUS$242.616.4%
+US$11.0b		46.0%PS2.3x
NOC Northrop GrummanUS$653.1413.2%
+US$10.9b		38.3%PE23.2x

Latest News

CAT
US$638.75
Caterpillar
7D
7.1%
1Y
70.4%
DAL
US$68.49
Delta Air Lines
7D
-4.4%
1Y
4.6%
LMT
US$572.70
Lockheed Martin
7D
15.3%
1Y
18.3%
GRAB
US$4.63
Grab Holdings
7D
-8.9%
1Y
3.8%
HON
US$213.04
Honeywell International
7D
6.8%
1Y
-3.0%
NOC
US$653.14
Northrop Grumman
7D
13.2%
1Y
38.3%

NOC: Future Defense Budgets And Buyback Limits Will Shape Cash Flow Durability

Analysts have nudged their fair value estimate for Northrop Grumman to about $665 per share from roughly $663, reflecting recent price target increases anchored in expectations for mid single digit organic growth, relatively stable guidance into 2026, and potential budget tailwinds for key defense programs such as Sentinel, B 21, TACAMO, E 2D, and related nuclear deterrence and munitions work, while also factoring in scenario analysis around future buyback constraints. Analyst Commentary Recent research paints a mixed picture for Northrop Grumman, with optimism around growth visibility and program funding set against questions about future capital returns and policy risk.
GEV
US$644.18
GE Vernova
7D
-2.7%
1Y
66.4%

GEV: Future Buybacks And Dividend Moves Will Mask Overvaluation Risk

Analysts have raised their price target on GE Vernova from US$448.08 to US$538.80, citing updated assumptions for revenue growth, profit margin, discount rate and future P/E. They view these updates as better reflecting the company’s potential risk and return profile.
AYI
US$319.20
Acuity
7D
-13.7%
1Y
-2.1%

AYI: Q1 Execution And Ongoing Buybacks Will Support Future Upside Potential

Narrative Update on Acuity The analyst price target for Acuity has been reduced from US$399.25 to US$391.25, as analysts factor in more moderate revenue growth and profit margin assumptions alongside a slightly higher discount rate, consistent with recent Street research updates that trimmed targets following Q1 results. Analyst Commentary Recent Street research on Acuity points to a mixed but measured view, with analysts adjusting their models after Q1 results came in modestly ahead of expectations while overall sentiment stayed cautious.
RTX
US$198.84
RTX
7D
7.1%
1Y
67.0%

RTX: Defense Policy Shifts And Commercial Aerospace Demand Will Shape Balanced Prospects

RTX's fair value estimate has been adjusted slightly higher to about $197 from about $195, as analysts factor in updated price targets and ongoing expectations for strong commercial aerospace demand, along with potential changes to defense budgeting and capital returns across the sector. Analyst Commentary Recent research on RTX focuses on how potential defense policy shifts and strong commercial aerospace demand could interact with capital return policies and long term growth expectations.
DE
US$512.10
Deere
7D
7.8%
1Y
19.4%
UBER
US$84.65
Uber Technologies
7D
-1.8%
1Y
26.3%

UBER: Autonomous Partnerships And AI Are Expected To Support Long Term Margins

Analysts have nudged their fair value estimate for Uber slightly lower to about $111, reflecting modestly higher discount-rate assumptions. They continue to highlight AI driven revenue opportunities, ongoing autonomous vehicle partnerships, and a focus on long term margins and capital allocation in recent price target updates across the Street.
ULS
US$77.01
UL Solutions
7D
-8.8%
1Y
50.9%

ULS: Index Additions And Expanded Testing Network Will Support Measured Upside

Narrative Update on UL Solutions Analysts have kept their price target for UL Solutions effectively unchanged at about $91.71. This reflects only minimal tweaks to assumptions around discount rate, revenue growth, profit margin, and future P/E, rather than a shift in their overall view of the company.
LHX
US$342.85
L3Harris Technologies
7D
10.7%
1Y
60.1%

LHX: Future Space Refocus And Missile Programs Will Sustain Premium Earnings Multiple

Narrative Update Analysts have nudged their price targets on L3Harris Technologies higher. Recent updates cite refreshed models after 3Q25 results and expectations for future awards, which is reflected in a slightly adjusted fair value estimate of about $334.26 and a future P/E of roughly 27.49x.
GE
US$318.88
General Electric
7D
-1.5%
1Y
76.9%
BA
US$242.61
Boeing
7D
6.4%
1Y
46.0%

BA: Defense Wins And Widebody Demand Will Support Balanced Future Prospects

Analysts have made a modest upward adjustment to their price target for Boeing to about $247 per share from roughly $244, citing updated assumptions for fair value, discount rate, revenue growth, profit margins and future P/E levels. What's in the News EVA Airways plans to purchase four 787-9 aircraft from Boeing, with a total transaction value capped at US$1.94b, subject to board approval and price negotiation based on market levels (client announcement).
UAL
US$110.75
United Airlines Holdings
7D
-5.0%
1Y
5.5%

UAL: Margin Execution And Operational Resets Will Shape Future Upside Potential

Analysts have nudged their fair value estimate for United Airlines Holdings up slightly from about US$124.36 to roughly US$125.26. They cite a modestly higher long term revenue outlook, a small adjustment to discount rates, and updated assumptions for profit margins and future P/E multiples following recent price target increases across several research firms.