Whether you see them or not, industrials businesses play a crucial part in our daily activities. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 16.5% for the sector - higher than the S&P 500’s 14.1% return.
Nevertheless, investors must be mindful as the cycle can unexpectedly turn. When this inevitably happens, only the elite companies will survive and ultimately thrive. With that said, here are three industrials stocks best left ignored.
Apogee (APOG)
Market Cap: $809.9 million
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Why Do We Avoid APOG?
- Sales tumbled by 1.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1%
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Apogee’s stock price of $37.65 implies a valuation ratio of 9.3x forward P/E. Check out our free in-depth research report to learn more about why APOG doesn’t pass our bar.
L.B. Foster (FSTR)
Market Cap: $280.7 million
Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
Why Does FSTR Give Us Pause?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
- ROIC of 3.4% reflects management’s challenges in identifying attractive investment opportunities
At $27.08 per share, L.B. Foster trades at 6.3x forward EV-to-EBITDA. If you’re considering FSTR for your portfolio, see our FREE research report to learn more.
BrightView (BV)
Market Cap: $1.19 billion
An official field consultant for Major League Baseball, BrightView (NYSE: BV) offers landscaping design, development, and maintenance.
Why Should You Sell BV?
- Annual sales declines of 2.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have contracted by 1.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
BrightView is trading at $12.58 per share, or 16.7x forward P/E. To fully understand why you should be careful with BV, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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