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U.S. Industrials Sector Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies1056
  • 7D0.2%
  • 3M14.9%
  • 1Y32.2%
  • YTD11.2%

The Industrials is pretty flat in the last 7 days, but GE Vernova has stood out, gaining 7.2%. The past year has been better, since the industry has gained 32% 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
Thu, 26 Feb 2026US$7.5tUS$2.8tUS$207.1b26.9x36.2x2.6x
Sat, 24 Jan 2026US$6.9tUS$2.8tUS$209.5b25.9x33x2.5x
Mon, 22 Dec 2025US$6.4tUS$2.7tUS$210.3b24.6x30.6x2.3x
Wed, 19 Nov 2025US$6.2tUS$2.7tUS$210.6b23.2x29.3x2.3x
Fri, 17 Oct 2025US$6.4tUS$2.7tUS$210.1b25.3x30.4x2.4x
Sun, 14 Sep 2025US$6.2tUS$2.7tUS$208.3b24.9x29.9x2.3x
Tue, 12 Aug 2025US$6.2tUS$2.7tUS$209.1b23.9x29.4x2.3x
Thu, 10 Jul 2025US$6.1tUS$2.7tUS$205.3b24.4x29.5x2.3x
Sat, 07 Jun 2025US$5.8tUS$2.7tUS$205.2b22.7x28.3x2.2x
Mon, 05 May 2025US$5.4tUS$2.7tUS$204.8b21.3x26.6x2x
Wed, 02 Apr 2025US$5.3tUS$2.7tUS$203.8b21.2x26x2x
Fri, 28 Feb 2025US$5.5tUS$2.7tUS$206.9b22x26.7x2.1x
Sun, 26 Jan 2025US$5.9tUS$2.7tUS$197.0b24.6x30x2.2x
Tue, 24 Dec 2024US$5.6tUS$2.7tUS$197.8b23.3x28.2x2.1x
Thu, 21 Nov 2024US$5.9tUS$2.7tUS$195.3b23.8x30.1x2.2x
Sat, 19 Oct 2024US$5.8tUS$2.7tUS$180.3b24.4x32.2x2.1x
Mon, 16 Sep 2024US$5.4tUS$2.7tUS$179.9b22.1x30.1x2x
Wed, 14 Aug 2024US$5.1tUS$2.7tUS$179.6b21.7x28.7x1.9x
Fri, 12 Jul 2024US$5.1tUS$2.7tUS$170.2b21.9x30.1x1.9x
Sun, 09 Jun 2024US$5.1tUS$2.7tUS$170.1b21.7x30.2x1.9x
Tue, 07 May 2024US$5.3tUS$2.7tUS$171.7b23x30.7x1.9x
Thu, 04 Apr 2024US$5.3tUS$2.7tUS$173.6b23.7x30.4x2x
Sat, 02 Mar 2024US$5.1tUS$2.7tUS$172.4b23.3x29.7x1.9x
Mon, 29 Jan 2024US$4.9tUS$2.7tUS$179.8b21.3x27.3x1.8x
Wed, 27 Dec 2023US$4.9tUS$2.7tUS$182.9b21.7x26.8x1.8x
Fri, 24 Nov 2023US$4.5tUS$2.7tUS$182.2b19.5x24.9x1.7x
Sun, 22 Oct 2023US$4.3tUS$2.7tUS$192.8b17.4x22.2x1.6x
Tue, 19 Sep 2023US$4.5tUS$2.7tUS$189.4b18.1x23.8x1.7x
Thu, 17 Aug 2023US$4.6tUS$2.7tUS$188.0b18.6x24.4x1.7x
Sat, 15 Jul 2023US$4.6tUS$2.7tUS$186.6b18.3x24.9x1.7x
Mon, 12 Jun 2023US$4.4tUS$2.7tUS$182.8b18.4x24x1.6x
Wed, 10 May 2023US$4.2tUS$2.7tUS$184.9b17.3x22.9x1.6x
Fri, 07 Apr 2023US$4.2tUS$2.6tUS$166.2b18x25x1.6x
Sun, 05 Mar 2023US$4.2tUS$2.6tUS$162.6b19.2x25.8x1.6x
Price to Earnings Ratio

25.8x


Total Market Cap: US$4.2tTotal Earnings: US$162.6bTotal 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 36.2x 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 8.4% 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 Market0.90%
Industrials0.21%
Construction5.95%
Electrical3.01%
Marine and Shipping1.79%
Infrastructure1.55%
Machinery0.75%
Industrials0.47%
Aerospace & Defense-0.038%
Transportation-0.75%
Professional Services-1.04%
Building-1.32%
Commercial Services-1.42%
Logistics-1.87%
Trade Distributors-2.81%
Airlines-3.84%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 62.7x.
    • Analysts are expecting annual earnings growth of 19.5%, which is higher than its past year's earnings growth of 15.3% 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 23% 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
GEV GE VernovaUS$876.017.2%
+US$15.8b		161.3%PE48.3x
GE General ElectricUS$342.894.0%
+US$14.0b		70.1%PE41.8x
DE DeereUS$623.615.1%
+US$8.2b		30.3%PE35.1x
VRT Vertiv Holdings CoUS$262.197.8%
+US$7.3b		165.9%PE75.3x
AXON Axon EnterpriseUS$520.1820.9%
+US$7.2b		-9.1%PE331.5x

Latest News

AXON
US$520.18
Axon Enterprise
7D
20.9%
1Y
-9.1%
DE
US$623.61
Deere
7D
5.1%
1Y
30.3%
BE
US$174.77
Bloom Energy
7D
11.1%
1Y
646.9%
RTX
US$195.98
RTX
7D
-4.3%
1Y
53.9%

RTX: Fair Value View Weighs Aerospace Demand Against Defense Policy Constraints

Analysts have nudged their RTX fair value estimate higher to $216.92 from $214.54, reflecting updated targets across major firms that highlight slightly stronger revenue growth assumptions, a modestly adjusted discount rate, and a similar forward P/E outlook despite a small trim to profit margin expectations. Analyst Commentary Recent research updates cluster around a series of higher price targets for RTX, which helps explain the modest lift in the consolidated fair value estimate.
NOC
US$703.65
Northrop Grumman
7D
-2.9%
1Y
54.7%

NOC: Future Defense Budgets And China Sanctions Will Shape Cash Flow

Our analyst price target for Northrop Grumman has been adjusted higher by about $3 to reflect a modestly higher fair value estimate and slightly richer future P/E assumptions, in line with a broad wave of recent target increases across the Street. Analyst Commentary The recent wave of target changes reflects a cluster of fresh views on Northrop Grumman, with several firms updating models and valuation frameworks at roughly the same time.
GEV
US$876.01
GE Vernova
7D
7.2%
1Y
161.3%

GE Vernova (GEV): Powering the Future: Electrons at Scale: The Grid’s New Sovereign

The narrative for GE Vernova in 2026 is centered on one word: Backlog. With a total backlog of $150 billion , the company has effectively "sold out" its capacity for years to come.
ETN
US$373.53
Eaton
7D
-1.8%
1Y
25.6%

ETN: Future Returns Will Reflect AI Power Buildout And Vehicle Unit Exit

Analysts have inched their consolidated price target for Eaton higher to about $408, reflecting modest tweaks to revenue growth, margins, and future P/E assumptions after a mix of recent target raises and cuts across the Street. Analyst Commentary Recent research shows a split tape on Eaton, with some firms lifting price targets and ratings while others trim expectations around the edges.
CARR
US$61.50
Carrier Global
7D
-4.4%
1Y
-7.0%

CARR: Heat Pump And AI Efficiency Advances Will Support Future Upside

Analysts have nudged our Carrier Global price target lower by about $0.53 to $71.66, as slightly higher revenue growth and a richer forward P/E are now being weighed against reduced profit margin assumptions and a modestly higher discount rate. Analyst Commentary Recent Street research on Carrier Global reflects a mix of optimism around growth execution and caution around valuation and earnings power.
BA
US$230.36
Boeing
7D
-3.6%
1Y
33.1%
HWM
US$259.64
Howmet Aerospace
7D
4.1%
1Y
96.7%
WM
US$228.10
Waste Management
7D
-2.5%
1Y
-0.3%

WM: Dividend Increase And New Buyback Program Will Support Steady Upside

Analysts now place their average price target for Waste Management at about $252.72, a shift from roughly $251.64. This reflects small model tweaks around fair value, discount rate, revenue growth, profit margin, and future P/E assumptions.
RKLB
US$70.20
Rocket Lab
7D
-5.7%
1Y
230.4%

Rocket Lab (RKLB): A Rising Challenger in the Space Economy

Rocket Lab has rapidly evolved from a niche small-satellite launch provider into one of the most compelling end-to-end space companies in the market. With ambitions that stretch far beyond launching rockets, the company is positioning itself as a serious long-term competitor in the rapidly expanding space economy.
LUV
US$49.89
Southwest Airlines
7D
-9.0%
1Y
62.6%

LUV: Future Fee Initiatives Will Likely Fail To Justify Current Pricing

Narrative Update The analyst price target for Southwest has moved higher to reflect a fair value estimate of $24.38, supported by updated assumptions for revenue growth, profit margins, and discount rate as analysts highlight potential earnings contributions from extra legroom, assigned seating, and checked bag initiatives. Analyst Commentary Recent Street research on Southwest has centered on how new revenue initiatives like extra legroom, assigned seating, and checked bag fees could affect earnings power and, in turn, perceived fair value for the stock.
VRT
US$262.19
Vertiv Holdings Co
7D
7.8%
1Y
165.9%

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).
CAT
US$766.61
Caterpillar
7D
1.9%
1Y
123.8%

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.
GE
US$342.89
General Electric
7D
4.0%
1Y
70.1%

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.