The industrials sector has emerged as one of the top-performing sectors year-to-date (YTD). The Industrial Select Sector SPDR Fund (NYSEARCA: XLI), a broad exchange-traded fund (ETF) that serves as a benchmark for the sector, has returned close to 9% since the start of 2025, far outpacing the growth of the S&P 500 over the same period. 

The Trump administration has suggested a rosy outlook for many companies in the industrials space, thanks to stated goals of boosting domestic manufacturing by U.S. firms.

In a bustling sector, a few standout names offer not only momentum based on recent performance but also persuasive bullish arguments from analysts and other benefits like flashing value signals or dividend payments. Those unfamiliar with industrial firms may not know Nordson Corp. (NASDAQ: NDSN), VSE Corp. (NASDAQ: VSEC), or Cimpress plc (NASDAQ: CMPR), but investors would do well to keep an eye on them while the sector continues to thrive.

Earnings Beat, Optimistic Outlook, Dividend Strength for Nordson

Nordson manufactures products used in agricultural spraying, automated dispensing, container coating, and a wide variety of other applications. Shares of the company are up about 4% YTD and an impressive 11% in the last month, driven by an earnings beat in late May.

For the company's second quarter, adjusted earnings per share of $2.42 beat analyst predictions by 6 cents, while revenue climbed by about 5% year-over-year to $683 million, another positive surprise.

With a backlog growth of 5% during the quarter and notable performances in both electronics systems and nonwovens systems, Nordson was also able to draw investor interest with an assertive forecast for the third quarter.

The company expects adjusted EPS in the range of $2.55 to $2.75, with net sales from $710 million to $750 million.

Due to reliance on international markets, Nordson may be especially vulnerable to tariffs. However, Nordson has also gained appeal as tariff fears have begun to subside across Wall Street. 

Nordson's dividend also entices investors, as the company has achieved a dividend yield of 1.47% on a healthy payout ratio of 40.1%.

This may have been a factor in Oppenheimer's recent decision to upgrade its rating to Outperform, and in Robert W. Baird's boosting of its NDSN price target by $4 per share. Five out of eight analysts consider NDSN a Buy, and the consensus price target suggests more than 19% upside potential.

Transition to Aviation-Only Firm Launches VSE Shares

VSE builds aftermarket parts primarily for commercial and regional airlines, having recently sold off its legacy aftermarket truck component business. Shares of VSEC are up 40% YTD amid this strategic repositioning, which should put VSE into a high-demand and higher-margin corner of the industrials space.

As part of its bid to reinvent itself as a pure-play aviation firm, VSE has made a strategic acquisition of aviation repair services and parts company Turbine Weld Industries. The acquisition gives VSE a crucial leg up in the area of maintenance, repair, and overhaul services.

The transition to an aviation-only focus has gone well thanks to two major developments in April: the $230-million sale of VSE's legacy fleet business, and a major five-year service agreement with aircraft firm Eaton to provide repair and overhaul on hydraulic components.

With projected earnings growth of nearly 54%, all six analysts reviewing VSEC shares have labeled the stock a Buy. However, recent rapid share price growth means VSEC has recently surpassed its consensus price target, and the company's shares may be trading at a premium.

Investors may want to watch to see if the rally cools down before entering a position or if VSE's transition to aviation continues to go smoothly.

Enticing Pivot Toward Elevated Products for Cimpress

Cimpress provides printed and digital marketing products and related services. Although CMPR shares are down nearly 38% YTD, the stock has risen by about 9% in the last month.

This recent growth may have been spurred by the CEO Robert Keane's recent announcement of the company's plan to shift toward "elevated products," including apparel and packaging.

Cimpress is following growth trends in its sales, as these have been some of the strongest portions of the company's business recently.

The steep declines in share price in the last several months mean Cimpress stock appears to be a strong value play, particularly given that analysts remain optimistic going forward.

Nonetheless, the company has underperformed expectations in its most recent earnings report, and it too could be heavily impacted by tariffs, so caution is warranted.

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