1 Industrial Stock Worth Deeper Investigation and 2 Encountering Challenges

The Role of Industrials in the Modern Economy

Industrials companies form the backbone of our daily lives, supporting everything from transportation and housing to the infrastructure behind online shopping. However, their significant presence also means they are highly sensitive to shifts in the economic landscape. Recently, the sector has outperformed, delivering a 22.1% return over the past six months—surpassing the S&P 500 by 11.5 percentage points.

Despite these impressive gains, investors should remain vigilant. The sector is broad and not every company is equally equipped to weather economic downturns. Below, we highlight one standout industrial stock worth watching and two that we recommend avoiding.

Industrials Stocks to Consider Selling

WESCO (WCC)

Market Capitalization: $13.81 billion

Headquartered in Pittsburgh, WESCO (NYSE:WCC) supplies electrical, industrial, and communications products, complemented by services like supply chain management.

Reasons for Caution with WCC:

• WESCO’s core operations have struggled, with organic revenue growth falling short over the past two years, indicating a reliance on acquisitions for expansion.
• The company’s earnings per share have declined during the same period, raising concerns since long-term stock performance often mirrors EPS trends.
• With a free cash flow margin of just 1.6% over the last five years, WESCO has limited resources for reinvestment, share repurchases, or dividend payments.

Currently trading at $283.93 per share, WESCO’s forward P/E ratio stands at 17.6.

Schneider (SNDR)

Market Capitalization: $5.22 billion

Schneider (NYSE:SNDR) operates a large fleet of drivers, providing full truckload and intermodal delivery services both regionally and internationally.

Why We’re Avoiding SNDR:

• Revenue has remained flat over the past two years, suggesting the company needs new growth strategies.
• Although sales have increased over the last five years, profitability has suffered, with earnings per share dropping by 10.2% annually.
• Declining returns on capital indicate that Schneider’s historical profit drivers are losing effectiveness.

Schneider is priced at $29.49 per share, with a forward P/E of 31.7.

A Promising Industrials Stock to Watch

BWX Technologies (BWXT)

Market Capitalization: $19.5 billion

BWX Technologies (NYSE:BWXT) has a storied history, having supplied materials for the Manhattan Project in the 1940s. Today, the company manufactures and services nuclear components and fuel for both government and commercial clients.

What Makes BWXT Stand Out:

• BWXT achieved an impressive 13% annual revenue growth over the past two years, signaling increased market share.
• Forecasts indicate revenue could rise by 15.2% over the next year, outpacing its recent growth rate and suggesting rising demand.
• The company’s free cash flow margin has improved by 16.9 percentage points in five years, giving it greater flexibility for investments, buybacks, and dividends.

BWXT shares are currently valued at $215.50, reflecting a forward P/E of 50.7. Is it the right time to invest?

Building a Resilient Portfolio with Quality Stocks

Relying on just a handful of stocks can leave your investments vulnerable. Now is the time to secure high-quality assets before market conditions shift and prices move beyond reach.

Don’t wait for the next bout of market turbulence. This carefully selected group of High Quality stocks has delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 picks included well-known names like Nvidia (up 1,326% from June 2020 to June 2025) and lesser-known companies such as Kadant, which achieved a 351% five-year gain.