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U.S. Industrials Sector Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies1065
  • 7D-1.5%
  • 3M5.4%
  • 1Y16.6%
  • YTD4.8%

Over the last 7 days, the Industrials industry has dropped 1.5%, driven by General Electric declining 9.6%. In the past year, the industry has gained 17%. 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
Mon, 26 Jan 2026US$6.8tUS$2.8tUS$209.5b25.9x32.7x2.5x
Wed, 24 Dec 2025US$6.5tUS$2.7tUS$210.3b24.8x31x2.4x
Fri, 21 Nov 2025US$6.2tUS$2.7tUS$210.7b23.1x29.3x2.3x
Sun, 19 Oct 2025US$6.3tUS$2.7tUS$209.8b25x30.2x2.3x
Tue, 16 Sep 2025US$6.2tUS$2.7tUS$208.3b24.9x29.9x2.3x
Thu, 14 Aug 2025US$6.2tUS$2.7tUS$209.8b24.9x29.7x2.3x
Sat, 12 Jul 2025US$6.1tUS$2.7tUS$205.4b24.3x29.7x2.3x
Mon, 09 Jun 2025US$5.9tUS$2.7tUS$205.2b22.7x28.5x2.2x
Wed, 07 May 2025US$5.4tUS$2.7tUS$203.5b21x26.7x2x
Fri, 04 Apr 2025US$5.4tUS$2.7tUS$203.3b20.1x26.6x2x
Sun, 02 Mar 2025US$5.6tUS$2.7tUS$204.1b21.8x27.3x2.1x
Tue, 28 Jan 2025US$5.9tUS$2.7tUS$197.1b24x30.1x2.2x
Thu, 26 Dec 2024US$5.6tUS$2.7tUS$197.9b23.6x28.4x2.1x
Sat, 23 Nov 2024US$6.0tUS$2.7tUS$197.3b24.5x30.2x2.2x
Mon, 21 Oct 2024US$5.8tUS$2.7tUS$180.3b24.4x32.3x2.1x
Wed, 18 Sep 2024US$5.5tUS$2.7tUS$180.0b22.6x30.3x2x
Fri, 16 Aug 2024US$5.2tUS$2.7tUS$179.8b21.9x29.1x1.9x
Sun, 14 Jul 2024US$5.3tUS$2.7tUS$169.7b22.4x31x2x
Tue, 11 Jun 2024US$5.2tUS$2.7tUS$170.1b21.7x30.4x1.9x
Thu, 09 May 2024US$5.3tUS$2.7tUS$171.4b23x30.8x1.9x
Sat, 06 Apr 2024US$5.2tUS$2.7tUS$173.6b23.6x30.1x2x
Mon, 04 Mar 2024US$5.1tUS$2.7tUS$172.2b23.4x29.9x1.9x
Wed, 31 Jan 2024US$5.0tUS$2.7tUS$178.4b21.6x27.8x1.8x
Fri, 29 Dec 2023US$5.0tUS$2.7tUS$183.1b21.6x27x1.8x
Sun, 26 Nov 2023US$4.6tUS$2.7tUS$182.2b19.5x25.1x1.7x
Tue, 24 Oct 2023US$4.3tUS$2.7tUS$192.8b17.2x22x1.6x
Thu, 21 Sep 2023US$4.5tUS$2.7tUS$189.4b18.2x23.6x1.6x
Sat, 19 Aug 2023US$4.5tUS$2.7tUS$187.8b18.5x24.2x1.7x
Mon, 17 Jul 2023US$4.6tUS$2.7tUS$186.5b18.3x24.9x1.7x
Wed, 14 Jun 2023US$4.5tUS$2.7tUS$182.8b18.4x24.5x1.7x
Fri, 12 May 2023US$4.2tUS$2.7tUS$184.3b17.3x22.8x1.6x
Sun, 09 Apr 2023US$4.2tUS$2.6tUS$166.2b18x25x1.6x
Tue, 07 Mar 2023US$4.2tUS$2.6tUS$162.6b19x25.7x1.6x
Thu, 02 Feb 2023US$4.2tUS$2.5tUS$161.6b19.4x25.9x1.6x
Price to Earnings Ratio

25.9x


Total Market Cap: US$4.2tTotal Earnings: US$161.6bTotal 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 9.0% 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 Market-0.36%
Industrials-1.53%
Infrastructure6.81%
Marine and Shipping3.82%
Commercial Services0.99%
Trade Distributors0.46%
Logistics-0.25%
Construction-0.41%
Industrials-0.64%
Transportation-0.73%
Electrical-1.04%
Building-1.09%
Machinery-1.46%
Professional Services-1.57%
Airlines-3.76%
Aerospace & Defense-4.00%
Industry PE
  • Investors are most optimistic about the Electrical industry which is trading above its 3-year average PE ratio of 61.5x.
    • 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 3.0% 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
BA BoeingUS$252.151.8%
+US$3.4b		44.0%PS2.4x
WM Waste ManagementUS$229.233.6%
+US$3.2b		7.3%PE36x
VRT Vertiv Holdings CoUS$182.493.1%
+US$2.1b		77.9%PE67.5x
RSG Republic ServicesUS$217.613.2%
+US$2.1b		0.9%PE32x
LMT Lockheed MartinUS$590.821.4%
+US$1.9b		17.3%PE32.6x

Latest News

RSG
US$217.61
Republic Services
7D
3.2%
1Y
0.9%

RSG: Renewable Gas Projects And Buybacks Will Support Future Upside

Analysts have nudged their price target on Republic Services down by about US$1 to roughly US$244, reflecting slightly softer assumptions for revenue growth and profit margins, along with a modestly higher future P/E multiple. What's in the News Ameresco and Republic Services brought a renewable natural gas facility at the Upper Rock Island County Landfill in East Moline, Illinois into operation, designed to process 2,000 standard cubic feet per minute of landfill gas into pipeline quality RNG and produce more than 500,000 Dekatherms each year, with the project framed as supporting Illinois clean energy goals and Republic Services biogas reuse target.
LMT
US$590.82
Lockheed Martin
7D
1.4%
1Y
17.3%

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.
GEV
US$657.78
GE Vernova
7D
-3.5%
1Y
99.3%

GEV: Expanded Buybacks And Dividend Growth Will Support Future Returns

Analysts have trimmed their price target on GE Vernova to reflect slightly lower fair value estimates and modestly softer assumptions for revenue growth, profit margins, and future P/E multiples, while also incorporating a somewhat higher discount rate. What's in the News GE Vernova and Seatrium won a consortium contract from TenneT to deliver major parts of BalWin5, a 2.2-gigawatt offshore HVDC grid connection linking German North Sea wind farms to the onshore grid.
LHX
US$354.73
L3Harris Technologies
7D
2.4%
1Y
59.6%

LHX: Missile Spinout And Space Refocus Will Support Balanced Premium Multiple

Analysts lifted their price target on L3Harris Technologies to $364, up $29, as they updated their models to reflect revised growth assumptions, adjustments to discount rates, and higher valuation multiples following recent price target increases across the Street tied to the planned missile solutions spinout and related government investment. Analyst Commentary Street research around L3Harris Technologies has been active, with several firms updating their models and lifting price targets following the announced missile solutions spinout and the planned approximately US$1b government investment in the new entity.
FTAI
US$292.10
FTAI Aviation
7D
6.7%
1Y
218.7%

FTAI: Power Platform And Free Cash Flow Targets Will Redefine Earnings Profile

Narrative Update Analysts have lifted their blended price target on FTAI Aviation from about US$294 to roughly US$335, citing refreshed assumptions around revenue, margins and future P/E multiples, supported by recent target increases from multiple firms. Analyst Commentary Recent research updates on FTAI Aviation show a cluster of higher price targets and constructive commentary from bullish analysts.
ETN
US$331.22
Eaton
7D
-3.6%
1Y
6.3%
VRT
US$182.49
Vertiv Holdings Co
7D
3.1%
1Y
77.9%

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$221.46
Honeywell International
7D
0.9%
1Y
-1.9%
UBER
US$82.31
Uber Technologies
7D
-3.0%
1Y
19.7%

UBER: Autonomous Partnerships And AI Will Support Long Term Returns

Analysts have trimmed their fair value estimate for Uber Technologies slightly to about US$110.43 from US$110.72. This reflects a modestly higher discount rate and slightly lower profit margin assumptions, even as they continue to point to steady revenue growth expectations and supportive research citing resilient Mobility trends and long term autonomous vehicle opportunities.
HWM
US$214.89
Howmet Aerospace
7D
-4.4%
1Y
76.0%
WM
US$229.23
Waste Management
7D
3.6%
1Y
7.3%

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).
CAT
US$626.62
Caterpillar
7D
-3.1%
1Y
58.6%

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.
BA
US$252.15
Boeing
7D
1.8%
1Y
44.0%

BA: Rising Widebody Orders Will Mask Ongoing Earnings Multiple Risk

Analysts have lifted their fair value estimate for Boeing to about US$191 from roughly US$187, citing updated assumptions for the discount rate, revenue growth, profit margin, and future P/E. What's in the News Ethiopian Airlines finalized orders for nine 787-9 Dreamliners and previously committed to 11 737 MAX jets, adding 20 Boeing aircraft to support long haul and regional routes across Africa and beyond (client announcement).
AVAV
US$307.75
AeroVironment
7D
-21.7%
1Y
74.3%

AVAV: BlueHalo Expansion Will Face Execution Risks In Counter UAS And SATCOM

Analysts trimmed their AeroVironment fair value estimate by about $15 to roughly $300 per share, while still highlighting stronger growth assumptions after Piper Sandler initiated coverage with an Overweight rating and a US$391 price target. The target is tied to the company's product agility and the impact of the BlueHalo acquisition on counter UAS and SATCOM exposure.
GE
US$293.87
General Electric
7D
-9.6%
1Y
51.1%

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.
RTX
US$195.93
RTX
7D
-3.0%
1Y
56.7%

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.