Whether you see them or not, industrials businesses play a crucial part in our daily activities. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 8.1% has fallen short of the S&P 500’s 11.4% rise.
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here are two industrials stocks boasting durable advantages and one we’re swiping left on.
One Industrials Stock to Sell:
Perma-Fix (PESI)
Market Cap: $325.9 million
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Why Do We Pass on PESI?
- Sales tumbled by 10.7% annually over the last five years, showing market trends are working against it during this cycle
- 26.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Perma-Fix’s stock price of $15.63 implies a valuation ratio of 3.4x forward price-to-sales. Check out our free in-depth research report to learn more about why PESI doesn’t pass our bar.
Two Industrials Stocks to Watch:
AMETEK (AME)
Market Cap: $54.39 billion
Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
Why Does AME Stand Out?
- Market share has increased this cycle as its 10.8% annual revenue growth over the last five years was exceptional
- Healthy operating margin of 25.3% shows it’s a well-run company with efficient processes, and its profits increased over the last five years as it scaled
- Strong free cash flow margin of 21.6% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
AMETEK is trading at $232 per share, or 28.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Bel Fuse (BELFA)
Market Cap: $3.71 billion
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Will BELFA Beat the Market?
- Operating margin improvement of 9.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 20.5% annually, topping its revenue gains
- Free cash flow margin expanded by 13.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $224.77 per share, Bel Fuse trades at 27.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
