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U.S. Industrials Sector Analysis

UpdatedJan 28, 2026
DataAggregated Company Financials
Companies1069
  • 7D1.0%
  • 3M6.1%
  • 1Y20.2%
  • YTD5.3%

Over the last 7 days, the Industrials industry has dropped 1.6%, driven by General Electric declining 4.8%. In the past year, the industry has gained 19%. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 28 Jan 2026US$7.0tUS$2.9tUS$211.3b26x33.3x2.5x
Fri, 26 Dec 2025US$6.5tUS$2.7tUS$210.3b24.8x31.1x2.4x
Sun, 23 Nov 2025US$6.1tUS$2.7tUS$209.8b23.7x29.2x2.2x
Tue, 21 Oct 2025US$6.4tUS$2.7tUS$209.8b25.5x30.5x2.4x
Thu, 18 Sep 2025US$6.2tUS$2.7tUS$208.5b24.8x30x2.3x
Sat, 16 Aug 2025US$6.2tUS$2.7tUS$209.5b24.5x29.5x2.3x
Mon, 14 Jul 2025US$6.1tUS$2.7tUS$206.3b24.4x29.6x2.3x
Wed, 11 Jun 2025US$5.9tUS$2.7tUS$205.2b22.9x28.6x2.2x
Fri, 09 May 2025US$5.4tUS$2.7tUS$206.1b21.7x26.3x2x
Sun, 06 Apr 2025US$4.8tUS$2.7tUS$203.3b19.1x23.7x1.8x
Tue, 04 Mar 2025US$5.6tUS$2.7tUS$204.1b21.1x27.3x2.1x
Thu, 30 Jan 2025US$5.8tUS$2.7tUS$195.8b24.3x29.5x2.2x
Sat, 28 Dec 2024US$5.6tUS$2.7tUS$197.9b23.7x28.5x2.1x
Mon, 25 Nov 2024US$6.0tUS$2.7tUS$197.3b24.5x30.6x2.2x
Wed, 23 Oct 2024US$5.8tUS$2.7tUS$188.7b23.7x30.7x2.1x
Fri, 20 Sep 2024US$5.5tUS$2.7tUS$179.8b22.6x30.5x2x
Sun, 18 Aug 2024US$5.3tUS$2.7tUS$178.7b22x29.6x2x
Tue, 16 Jul 2024US$5.3tUS$2.7tUS$169.7b22.5x31x2x
Thu, 13 Jun 2024US$5.1tUS$2.7tUS$170.1b21.4x30.2x1.9x
Sat, 11 May 2024US$5.3tUS$2.7tUS$172.2b23.4x30.9x2x
Mon, 08 Apr 2024US$5.3tUS$2.7tUS$173.1b23.4x30.8x2x
Wed, 06 Mar 2024US$5.2tUS$2.7tUS$172.3b23.2x30x1.9x
Fri, 02 Feb 2024US$5.0tUS$2.7tUS$178.9b21.5x27.8x1.8x
Sun, 31 Dec 2023US$4.9tUS$2.7tUS$183.1b21.5x27x1.8x
Tue, 28 Nov 2023US$4.6tUS$2.7tUS$182.2b19.3x25.1x1.7x
Thu, 26 Oct 2023US$4.2tUS$2.7tUS$184.9b16.8x22.9x1.6x
Sat, 23 Sep 2023US$4.4tUS$2.7tUS$189.6b17.9x23.1x1.6x
Mon, 21 Aug 2023US$4.5tUS$2.7tUS$178.8b18.5x25.4x1.7x
Wed, 19 Jul 2023US$4.7tUS$2.7tUS$186.5b18.6x25.3x1.8x
Fri, 16 Jun 2023US$4.5tUS$2.7tUS$182.7b18.3x24.4x1.7x
Sun, 14 May 2023US$4.2tUS$2.7tUS$184.3b17.3x22.8x1.6x
Tue, 11 Apr 2023US$4.2tUS$2.6tUS$166.5b18.4x25.2x1.6x
Thu, 09 Mar 2023US$4.1tUS$2.6tUS$162.4b19x25.5x1.6x
Sat, 04 Feb 2023US$4.2tUS$2.5tUS$161.4b19.3x26.1x1.7x
Price to Earnings Ratio

26.1x


Total Market Cap: US$4.2tTotal Earnings: US$161.4bTotal 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 32.7x 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 9.1% per year over the last three years.
  • Revenues for these companies have grown 2.7% 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 Market2.04%
Industrials0.99%
Infrastructure8.40%
Marine and Shipping4.88%
Electrical2.80%
Construction2.76%
Industrials1.94%
Logistics1.63%
Commercial Services1.62%
Transportation1.51%
Trade Distributors1.46%
Machinery1.17%
Building0.63%
Aerospace & Defense-0.25%
Professional Services-0.58%
Airlines-2.61%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 61.6x.
    • Analysts are expecting annual earnings growth of 22.2%, which is higher than its past year's earnings growth of 18.0% 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 39% 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 2.9% 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
RTX RTXUS$201.282.5%
+US$6.6b		56.8%PE40.1x
UNP Union PacificUS$232.554.9%
+US$6.4b		-6.7%PE19.6x
VRT Vertiv Holdings CoUS$189.218.0%
+US$5.4b		77.6%PE69.9x
CAT CaterpillarUS$638.911.6%
+US$4.6b		63.7%PE32.2x
LMT Lockheed MartinUS$594.953.3%
+US$4.4b		30.1%PE32.8x

Latest News

UBER
US$81.24
Uber Technologies
7D
-3.0%
1Y
19.3%
BA
US$244.56
Boeing
7D
-1.8%
1Y
37.6%
RTX
US$201.28
RTX
7D
2.5%
1Y
56.8%
CR
US$185.64
Crane
7D
-9.8%
1Y
5.6%
RKLB
US$87.00
Rocket Lab
7D
-2.4%
1Y
200.2%
UNP
US$232.55
Union Pacific
7D
4.9%
1Y
-6.7%

UNP: Merger Review And Regulatory Scrutiny Will Ultimately Unlock Future Upside

Narrative Update Overview Analysts have nudged their implied price target for Union Pacific higher by about US$3, to roughly US$263, as they factor in modest tweaks to discount rates, revenue growth, margins and future P/E assumptions, while weighing recent commentary on regulatory risks, freight softness and the proposed Norfolk Southern merger. Analyst Commentary Recent research on Union Pacific highlights a split view, with some analysts focused on longer term merger benefits and intermodal opportunities, while others are more cautious about regulatory risk, freight softness and valuation after the share price rally.
LMT
US$594.95
Lockheed Martin
7D
3.3%
1Y
30.1%

LMT: Sector Momentum And Policy Shifts Will Shape Balanced Future Returns

Our updated narrative reflects a higher analyst price target for Lockheed Martin, with fair value moving from $528.17 to $569.68 as analysts fold in revised sector assumptions, modestly higher revenue growth and P/E expectations, and recent rounds of target increases across the Street. Analyst Commentary Recent research on Lockheed Martin clusters around higher price targets, but the reasons behind those moves are mixed.
CSX
US$37.67
CSX
7D
6.1%
1Y
15.3%
VRT
US$189.21
Vertiv Holdings Co
7D
8.0%
1Y
77.6%

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.
HON
US$220.91
Honeywell International
7D
2.7%
1Y
0.1%
HWM
US$215.53
Howmet Aerospace
7D
-2.2%
1Y
70.5%
WM
US$231.34
Waste Management
7D
4.5%
1Y
8.3%

WM: Buybacks And Dividend Plan Will Support Measured Long Term Upside

Analysts have nudged their price target for Waste Management higher by about US$1, citing only small tweaks to fair value estimates, discount rate, revenue growth, profit margin, and future P/E assumptions. What's in the News The Board of Directors authorized a new share repurchase program allowing Waste Management to buy back up to US$3.0b of its shares, replacing the prior US$1.5b authorization from 2023 (Key Developments).
UAL
US$104.04
United Airlines Holdings
7D
-4.2%
1Y
-2.2%
CAT
US$638.91
Caterpillar
7D
1.6%
1Y
63.7%

CAT: Data Center Power Demand Will Drive Future Earnings Repricing

Our Caterpillar fair value estimate is updated from $780 to $790, reflecting analysts' higher price targets and their focus on data center driven engine demand, stronger Energy & Transportation and Construction trends, and a slightly higher assumed future P/E multiple. Analyst Commentary Recent Street research on Caterpillar has leaned constructive, with several bullish analysts lifting price targets and highlighting specific growth drivers tied to engines, power generation and core construction and energy markets.
KTOS
US$118.06
Kratos Defense & Security Solutions
7D
-8.3%
1Y
252.6%

KTOS: Elevated Defense Hopes Will Likely Outrun Realistic Program Execution

Analysts have lifted their fair value estimate for Kratos Defense & Security Solutions to $83.00 from $80.00, citing higher Street price targets tied to Valkyrie drone order momentum, progress in hypersonic testing, new subcontractor roles on collaborative combat aircraft programs, expectations around defense budget trends, and the potential impact of the Orbit Technologies acquisition. Analyst Commentary Recent Street research on Kratos Defense & Security Solutions has centered on higher price targets tied to specific growth drivers, including Valkyrie drone order momentum, hypersonic testing progress, collaborative combat aircraft opportunities, and the pending Orbit Technologies acquisition.
GE
US$297.47
General Electric
7D
-4.8%
1Y
53.0%

GE: Engine Contract Momentum And Higher Margins Will Support Future Returns

Narrative Update Analysts have made a modest upward adjustment to their price targets for General Electric, reflecting small refinements to assumptions on discount rate, revenue growth, profit margins, and future P/E rather than a change in the US$394 fair value estimate. Analyst Commentary Recent Street research around General Electric has centered on fine tuning price targets for GE Aerospace, with a mix of upward and downward adjustments that still point to generally constructive sentiment on the company’s execution and earnings power.