Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. 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 22.6% for the sector - higher than the S&P 500’s 16.4% return.

Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. With that said, here is one resilient industrials stock at the top of our wish list and two best left ignored.

Two Industrials Stocks to Sell:

Bel Fuse (BELFA)

Market Cap: $1.83 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 Are We Cautious About BELFA?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.1% annually over the last two years
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Bel Fuse’s stock price of $124.59 implies a valuation ratio of 12.8x forward EV-to-EBITDA. To fully understand why you should be careful with BELFA, check out our full research report (it’s free).

United Parcel Service (UPS)

Market Cap: $72.21 billion

Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.

Why Is UPS Risky?

1. Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

United Parcel Service is trading at $85.19 per share, or 11.6x forward P/E. Dive into our free research report to see why there are better opportunities than UPS.

One Industrials Stock to Watch:

SPX Technologies (SPXC)

Market Cap: $9.18 billion

SPX Technologies (NYSE: SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Are We Fans of SPXC?

1. Market share has increased this cycle as its 12.5% annual revenue growth over the last two years was exceptional
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.2% annually

At $185.50 per share, SPX Technologies trades at 28.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.