The industrial sector includes companies that produce machinery, equipment, and supplies used in construction and manufacturing, as well as those that provide related services. These companies are closely tied to the economy, and their business volume often falls sharply during recessions, though each industrial subsector often performs differently.
Well-known industrial sector companies include Lockheed Martin Corp. (LMT), Honeywell International Inc. (HON), and 3M Co. (MMM). The industrial sector also includes companies that provide air transportation services, such as United Airlines Holdings Inc. (UAL).
Industrial stocks, represented by an exchange-traded fund (ETF)—the Industrial Select Sector SPDR ETF (XLI)—have underperformed the broader market, providing investors with a total return of 5.8% compared to the Russell 1000’s total return of 7.5% over the past 12 months. These market performance numbers and all statistics in the tables below are as of Feb. 23, 2022.
Here are the top three industrial stocks with the best value, the fastest growth, and the most momentum.
These are the industrial stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.
Best Value Industrial Stocks
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio
Louisiana-Pacific Corp. (LPX)
Seaboard Corp. (SEB)
Nielsen Holdings PLC (NLSN)
Louisiana-Pacific Corp.: Louisiana-Pacific makes building materials and engineered wood products. The company provides oriented strand board sheathing, siding and trim, I-joists, laminated veneer lumber, and similar products. It has manufacturing and administrative locations in the U.S., Canada, and South America. Louisiana-Pacific reported fiscal results for Q4 FY 2021, ended Dec. 31, on Feb. 22. Net income declined by 25.1%…..