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U.S. Industrials Sector Analysis

UpdatedJan 21, 2026
DataAggregated Company Financials
Companies1065
  • 7D-0.3%
  • 3M7.2%
  • 1Y16.0%
  • YTD4.1%

In the last week, the Industrials industry is up 2.2%, with GE Vernova up 5.0%. In the last 12 months, the industry was up 21%. 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
Wed, 21 Jan 2026US$7.0tUS$2.7tUS$208.9b25.6x33.3x2.5x
Fri, 19 Dec 2025US$6.3tUS$2.7tUS$210.1b24.3x30.1x2.3x
Sun, 16 Nov 2025US$6.3tUS$2.7tUS$210.7b23.9x29.7x2.3x
Tue, 14 Oct 2025US$6.3tUS$2.7tUS$210.1b24.5x29.8x2.3x
Thu, 11 Sep 2025US$6.2tUS$2.7tUS$208.3b24.7x29.5x2.3x
Sat, 09 Aug 2025US$6.2tUS$2.7tUS$208.8b24x29.5x2.3x
Mon, 07 Jul 2025US$6.1tUS$2.7tUS$205.2b24.3x29.7x2.3x
Wed, 04 Jun 2025US$5.7tUS$2.7tUS$205.2b22.4x27.9x2.1x
Fri, 02 May 2025US$5.3tUS$2.7tUS$203.8b20.9x26x2x
Sun, 30 Mar 2025US$5.3tUS$2.7tUS$203.7b20.8x25.9x2x
Tue, 25 Feb 2025US$5.6tUS$2.7tUS$209.0b22.2x26.7x2.1x
Thu, 23 Jan 2025US$5.9tUS$2.7tUS$195.5b24.9x30.3x2.2x
Sat, 21 Dec 2024US$5.5tUS$2.7tUS$197.8b23.4x27.9x2x
Mon, 18 Nov 2024US$5.9tUS$2.7tUS$195.0b23.7x30x2.1x
Wed, 16 Oct 2024US$5.8tUS$2.7tUS$180.4b24.1x32x2.1x
Fri, 13 Sep 2024US$5.3tUS$2.7tUS$179.8b21.8x29.5x2x
Sun, 11 Aug 2024US$5.2tUS$2.7tUS$179.6b21.4x28.8x1.9x
Tue, 09 Jul 2024US$5.1tUS$2.7tUS$170.2b21.3x29.9x1.9x
Thu, 06 Jun 2024US$5.1tUS$2.7tUS$170.1b22.2x30.2x1.9x
Sat, 04 May 2024US$5.2tUS$2.7tUS$171.8b22.6x30.1x1.9x
Mon, 01 Apr 2024US$5.4tUS$2.6tUS$172.8b23.9x31x2x
Wed, 28 Feb 2024US$5.1tUS$2.7tUS$173.8b23.4x29.3x1.9x
Fri, 26 Jan 2024US$4.9tUS$2.7tUS$182.7b21.2x26.6x1.8x
Sun, 24 Dec 2023US$4.9tUS$2.7tUS$182.9b21.6x26.8x1.8x
Tue, 21 Nov 2023US$4.5tUS$2.7tUS$182.2b19.5x24.9x1.7x
Thu, 19 Oct 2023US$4.4tUS$2.7tUS$193.6b17.5x22.6x1.6x
Sat, 16 Sep 2023US$4.5tUS$2.7tUS$189.6b18.3x23.7x1.7x
Mon, 14 Aug 2023US$4.7tUS$2.7tUS$189.1b19.1x24.7x1.7x
Wed, 12 Jul 2023US$4.6tUS$2.7tUS$185.5b18.2x25.1x1.7x
Fri, 09 Jun 2023US$4.4tUS$2.7tUS$182.8b18.1x24.1x1.6x
Sun, 07 May 2023US$4.2tUS$2.7tUS$185.6b17.5x22.9x1.6x
Tue, 04 Apr 2023US$4.3tUS$2.6tUS$165.4b18.8x26x1.6x
Thu, 02 Mar 2023US$4.1tUS$2.6tUS$162.3b19x25.4x1.6x
Sat, 28 Jan 2023US$4.1tUS$2.5tUS$161.7b18.6x25.4x1.6x
Price to Earnings Ratio

25.4x


Total Market Cap: US$4.1tTotal Earnings: US$161.7bTotal 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 33.3x which is higher than its 3-year average PE of 27.8x.
  • 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 8.9% per year over the last three years.
  • Revenues for these companies have grown 2.6% 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-2.00%
Industrials-0.33%
Construction3.29%
Marine and Shipping2.36%
Electrical1.79%
Commercial Services0.97%
Infrastructure0.70%
Building-0.091%
Aerospace & Defense-0.24%
Machinery-0.62%
Logistics-0.96%
Trade Distributors-1.06%
Industrials-1.77%
Professional Services-2.00%
Transportation-2.27%
Airlines-2.52%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 61.2x.
    • 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 15.8x.
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 grow by 2.0% 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
GEV GE VernovaUS$684.865.0%
+US$8.9b		64.6%PE109x
NOC Northrop GrummanUS$657.305.1%
+US$4.5b		30.3%PE23.3x
LMT Lockheed MartinUS$576.063.2%
+US$4.1b		13.8%PE31.7x
TDG TransDigm GroupUS$1.45k4.8%
+US$3.7b		6.7%PE43.7x
BA BoeingUS$249.001.8%
+US$3.4b		41.8%PS2.3x

Latest News

MMM
US$156.12
3M
7D
-7.9%
1Y
6.3%
PWR
US$463.49
Quanta Services
7D
4.3%
1Y
29.5%

PWR: Power Supercycle And New Generation Platform Will Support Balanced Outlook

Analysts have nudged their fair value estimate for Quanta Services higher, with the price target moving from about US$474 to roughly US$477, citing stronger margin assumptions, a slightly higher future P/E, and continued support from research firms highlighting benefits from the U.S. power supercycle, growth in the Electric division, and the new Total Solutions Power Generation Platform. Analyst Commentary Bullish Takeaways Bullish analysts highlight Quanta Services as a key beneficiary of the U.S. power supercycle, pointing to the Electric division and power related work as important drivers for revenue visibility and long term growth opportunities.
URI
US$910.55
United Rentals
7D
-3.2%
1Y
15.4%

URI: Secular Project Demand Will Support Unit Profitability Compounding

Analysts have raised their fair value estimate for United Rentals to about US$1,349 from US$1,075. This reflects updated assumptions for slightly higher revenue growth, profit margins and future P/E multiples, even as some recent price targets on the Street have seen modest reductions alongside several upward revisions.
GE
US$312.34
General Electric
7D
-4.6%
1Y
66.6%

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.
HON
US$215.07
Honeywell International
7D
2.3%
1Y
-4.4%

HON: Breakup Phase And Portfolio Moves Will Shape Balanced Risk Reward Outlook

Analysts have trimmed their fair value estimate for Honeywell International by about $3, to roughly $236. This reflects slightly softer assumed revenue growth and a modestly lower future P/E multiple, partly offset by a small improvement in projected profit margins and recent research pointing to potential value from portfolio changes and segment momentum.
FDX
US$301.03
FedEx
7D
-2.8%
1Y
9.2%
CAT
US$629.00
Caterpillar
7D
-1.2%
1Y
57.9%
LMT
US$576.06
Lockheed Martin
7D
3.2%
1Y
13.8%
NOC
US$657.30
Northrop Grumman
7D
5.1%
1Y
30.3%

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$684.86
GE Vernova
7D
5.0%
1Y
64.6%

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.
RTX
US$196.36
RTX
7D
1.2%
1Y
56.2%

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.
UNP
US$221.69
Union Pacific
7D
-3.3%
1Y
-6.4%

UNP: Merger Review And Regulatory Overhang Will Set Stage For Future Upside

Analysts have trimmed their Union Pacific fair value estimate slightly to about US$260 from roughly US$260.50. This reflects a lower blended Street price target as some factor in cautious views on the proposed Norfolk Southern merger, softer freight trends, a modestly higher discount rate, and only small changes to long term growth, margin, and P/E assumptions.
UBER
US$83.72
Uber Technologies
7D
-2.0%
1Y
23.6%

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.
TDG
US$1,448.55
TransDigm Group
7D
4.8%
1Y
6.7%
BA
US$249.00
Boeing
7D
1.8%
1Y
41.8%

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$108.57
United Airlines Holdings
7D
-5.1%
1Y
-1.8%

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.