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U.S. Industrials Sector Analysis

UpdatedFeb 23, 2026
DataAggregated Company Financials
Companies1055
  • 7D1.7%
  • 3M18.6%
  • 1Y33.1%
  • YTD12.0%

Over the last 7 days, the Industrials industry has risen 1.7%, driven by gains from General Electric of 7.5%. In the same time, Eaton was down 7.0%. In the last 12 months, the industry was up 33%. 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
Tue, 24 Feb 2026US$7.5tUS$2.8tUS$207.1b27.7x36.3x2.6x
Thu, 22 Jan 2026US$6.8tUS$2.8tUS$209.0b26x32.6x2.5x
Sat, 20 Dec 2025US$6.4tUS$2.7tUS$210.3b24.6x30.4x2.3x
Mon, 17 Nov 2025US$6.3tUS$2.7tUS$210.7b23.9x29.7x2.3x
Wed, 15 Oct 2025US$6.3tUS$2.7tUS$210.1b25.1x30.1x2.3x
Fri, 12 Sep 2025US$6.2tUS$2.7tUS$208.2b24.8x29.7x2.3x
Sun, 10 Aug 2025US$6.2tUS$2.7tUS$209.1b24.1x29.4x2.3x
Tue, 08 Jul 2025US$6.1tUS$2.7tUS$205.2b23.9x29.7x2.3x
Thu, 05 Jun 2025US$5.8tUS$2.7tUS$205.2b22.5x28.3x2.2x
Sat, 03 May 2025US$5.3tUS$2.7tUS$205.0b21.4x26.1x2x
Mon, 31 Mar 2025US$5.3tUS$2.7tUS$203.7b20.9x25.9x2x
Wed, 26 Feb 2025US$5.5tUS$2.7tUS$208.8b22.2x26.5x2.1x
Fri, 24 Jan 2025US$5.9tUS$2.7tUS$197.2b24.6x30x2.2x
Sun, 22 Dec 2024US$5.6tUS$2.7tUS$197.8b23.4x28.2x2.1x
Tue, 19 Nov 2024US$5.9tUS$2.7tUS$195.0b23.6x30x2.1x
Thu, 17 Oct 2024US$5.8tUS$2.7tUS$180.3b24.4x32.2x2.1x
Sat, 14 Sep 2024US$5.4tUS$2.7tUS$179.8b22.1x29.9x2x
Mon, 12 Aug 2024US$5.2tUS$2.7tUS$179.6b21.4x28.8x1.9x
Wed, 10 Jul 2024US$5.1tUS$2.7tUS$170.3b21x30x1.9x
Fri, 07 Jun 2024US$5.2tUS$2.7tUS$170.1b21.8x30.5x1.9x
Sun, 05 May 2024US$5.2tUS$2.7tUS$171.8b22.6x30.3x1.9x
Tue, 02 Apr 2024US$5.4tUS$2.7tUS$173.6b23.8x30.9x2x
Thu, 29 Feb 2024US$5.1tUS$2.7tUS$174.1b23.2x29.3x1.9x
Sat, 27 Jan 2024US$4.9tUS$2.7tUS$179.8b21.2x27.3x1.8x
Mon, 25 Dec 2023US$4.9tUS$2.7tUS$183.0b21.6x26.8x1.8x
Wed, 22 Nov 2023US$4.5tUS$2.7tUS$182.2b19.3x24.9x1.7x
Fri, 20 Oct 2023US$4.3tUS$2.7tUS$193.3b17.4x22.3x1.6x
Sun, 17 Sep 2023US$4.5tUS$2.7tUS$189.4b18.1x23.8x1.7x
Tue, 15 Aug 2023US$4.7tUS$2.7tUS$189.2b19x24.7x1.7x
Thu, 13 Jul 2023US$4.7tUS$2.7tUS$185.5b18.3x25.1x1.7x
Sat, 10 Jun 2023US$4.4tUS$2.7tUS$182.8b18.4x24x1.6x
Mon, 08 May 2023US$4.2tUS$2.7tUS$185.6b17.5x22.9x1.6x
Wed, 05 Apr 2023US$4.2tUS$2.6tUS$165.4b18.4x25.4x1.6x
Fri, 03 Mar 2023US$4.2tUS$2.6tUS$162.2b18.9x25.6x1.6x
Price to Earnings Ratio

25.6x


Total Market Cap: US$4.2tTotal Earnings: US$162.2bTotal Revenue: US$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Industrials Sector Price to Earnings3Y Average 28.1x202420252026
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 36.3x which is higher than its 3-year average PE of 28.1x.
  • The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Industrials industry have grown 8.5% per year over the last three years.
  • Revenues for these companies have grown 3.6% 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 Market1.04%
Industrials1.66%
Marine and Shipping7.16%
Construction4.42%
Infrastructure4.18%
Transportation3.57%
Aerospace & Defense3.30%
Logistics1.85%
Professional Services1.19%
Electrical1.15%
Airlines1.03%
Machinery0.64%
Commercial Services0.14%
Building-0.17%
Industrials-0.23%
Trade Distributors-0.73%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 62.6x.
    • Analysts are expecting annual earnings growth of 19.3%, which is higher than its past year's earnings growth of 13.6% per year.
  • Investors are most pessimistic about the Marine and Shipping industry, which is trading below its 3-year average of 16.0x.
Forecasted Growth
  • Analysts are most optimistic on the Infrastructure industry, expecting annual earnings growth of 33% 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
GE General ElectricUS$338.997.5%
+US$24.7b		70.6%PE41.3x
DE DeereUS$646.847.3%
+US$11.9b		33.5%PE36.4x
GEV GE VernovaUS$831.703.7%
+US$8.0b		163.3%PE45.9x
BE Bloom EnergyUS$160.2814.7%
+US$5.8b		606.1%PS22.2x
VRT Vertiv Holdings CoUS$245.424.6%
+US$4.2b		169.6%PE70.5x

Latest News

BA
US$230.44
Boeing
7D
-5.2%
1Y
28.1%
PWR
US$549.11
Quanta Services
7D
4.8%
1Y
111.7%

Quanta Services (PWR) The Grid’s Backbone: Why the AI Energy Crunch Starts Here

While the market obsesses over chips, Quanta Services (PWR) is the company actually digging the trenches and stringing the high-voltage lines that make AI possible. As of February 2026, PWR is trading near $412 , acting as the primary contractor for the massive electrical infrastructure overhaul required by data center "hyperscalers." With a backlog that has swelled to over $30 billion , Quanta is effectively the "exclusive builder" of the modern American grid.
CPRT
US$35.36
Copart
7D
-5.7%
1Y
-37.7%
HWM
US$257.04
Howmet Aerospace
7D
2.7%
1Y
98.4%
DE
US$646.84
Deere
7D
7.3%
1Y
33.5%

DE: Q1 Beat And Construction Strength Will Support Earnings Recovery As Cycle Bottoms

Analysts have raised their implied fair value estimate for Deere from about $527 to about $630, citing stronger than expected Q1 results, an improved margin outlook, and higher long-term earnings power. This view is reflected in a slightly lower discount rate, steadier revenue expectations, and a similar future P/E multiple.
NOC
US$725.39
Northrop Grumman
7D
3.2%
1Y
61.2%
UPS
US$115.02
United Parcel Service
7D
-3.5%
1Y
-1.0%

UPS: Labor Disputes And Fleet Disruptions Will Pressure Margins And Sentiment

The analyst fair value estimate for United Parcel Service has been lifted from about $80.28 to roughly $85.08 as analysts factor in higher revenue growth assumptions, slightly stronger profit margins, and a higher future P/E multiple supported by a wave of recent price target increases and upgrades across the Street. Analyst Commentary Recent research on United Parcel Service shows a mix of optimism and caution, with several firms adjusting price targets and ratings as they refine outlooks for earnings, margins, and sector conditions through 2026.
VRT
US$245.42
Vertiv Holdings Co
7D
4.6%
1Y
169.6%

VRT: AI Data Center Services And 2026 Outlook Will Frame Balanced Upside

Analysts have lifted their price target for Vertiv Holdings Co to $263.20 from $198.45, citing updated assumptions for revenue growth, profit margins, a slightly adjusted discount rate, and a modestly lower future P/E multiple. What's in the News Vertiv issued earnings guidance for the first quarter of 2026, with expected net sales between US$2.5b and US$2.7b, diluted GAAP EPS of US$0.80, GAAP operating profit of US$424.8m, and GAAP net income of US$312.7m (corporate guidance).
MMM
US$166.34
3M
7D
-3.2%
1Y
14.3%

MMM: Digital Execution And Slightly Higher Fair Value Will Support Re Rating

The analyst price target for 3M has shifted slightly higher, with our fair value estimate moving from $223.00 to about $225.67 as analysts factor in updated growth and margin assumptions, along with mixed target revisions across major firms. Analyst Commentary Recent Street research on 3M shows a split view, with several bullish analysts lifting price targets and others trimming expectations or downgrading the stock.
BE
US$160.28
Bloom Energy
7D
14.7%
1Y
606.1%

BE: AI Data Center Partnership Will Support Rising 2026 Revenue Outlook

Analysts have raised their fair value estimate on Bloom Energy from $157.00 to $207.00. The new estimate reflects updated assumptions that include higher modeled revenue growth, a lower profit margin outlook, a slightly higher discount rate, and a richer future P/E multiple.
CAT
US$756.47
Caterpillar
7D
-2.3%
1Y
123.2%

CAT: Data Center Power Demand Will Drive Future Multiple Repricing

Caterpillar's analyst price target has been raised from $790 to $850. Analysts cited updated assumptions for faster revenue growth, a slightly lower discount rate, and a higher future P/E multiple, partly offset by more moderate profit margin expectations.
GEV
US$831.70
GE Vernova
7D
3.7%
1Y
163.3%
GE
US$338.99
General Electric
7D
7.5%
1Y
70.6%

GE: Fairly Valued On Automation Push And High Execution Demands

Analysts have lifted their implied fair value estimate for General Electric to about $301 from roughly $198, citing updated assumptions for revenue growth, profit margins and future P/E, along with a slightly higher discount rate. Analyst Commentary Recent Street research on General Electric has been active, with several firms adjusting their price targets on GE Aerospace.
ETN
US$362.05
Eaton
7D
-7.0%
1Y
24.9%
PAYX
US$87.39
Paychex
7D
-7.4%
1Y
-41.7%

PAYX: AI And Buybacks Will Support Resilient Future Cash Flow Profile

Analysts have trimmed their average Paychex price target slightly to about $119.53 from roughly $120.20, reflecting a modestly lower assumed future P/E and fresh bearish initiation commentary that characterizes the recent Paycor acquisition as a largely defensive move. Analyst Commentary Recent commentary focuses heavily on the Paycor acquisition and how it feeds into expectations for Paychex valuation and execution.
ADP
US$205.73
Automatic Data Processing
7D
-3.0%
1Y
-34.1%

ADP: Dividend Power And HR Platform Execution Will Support Premium P/E

Analysts have trimmed their average price target on Automatic Data Processing by about $10, reflecting slightly more cautious assumptions on revenue growth, profit margins and future P/E multiples after a series of target cuts from major research firms, alongside one fresh bullish initiation. Analyst Commentary Recent research on Automatic Data Processing shows a cluster of target cuts alongside one new, more optimistic initiation.