Whether you see them or not, industrials businesses play a crucial part in our daily activities. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 2% has trailed the S&P 500’s 16.3% gain.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here are three industrials stocks boasting durable advantages.
FTAI Aviation (FTAI)
Market Cap: $17.18 billion
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Are We Bullish on FTAI?
- Annual revenue growth of 50.5% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 35.1% annually over the last two years and trumped its peers
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
FTAI Aviation’s stock price of $168.12 implies a valuation ratio of 19x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
EMCOR (EME)
Market Cap: $33.92 billion
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
What Makes EME Stand Out?
- Market share has increased this cycle as its 16.3% annual revenue growth over the last two years was exceptional
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Improving returns on capital reflect management’s ability to monetize investments
EMCOR is trading at $769 per share, or 21.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Kratos (KTOS)
Market Cap: $8.04 billion
Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Why Should You Buy KTOS?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years
- Market share is on track to rise over the next 12 months as its 30.6% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share grew by 18.7% annually over the last two years, massively outpacing its peers
At $42.94 per share, Kratos trades at 46.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.