1 Industrials Stock Worth Your Attention and 2 We Question

Barchart·05/15/2026 02:46:26

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles. Luckily, the tide is turning in their favor as the industry’s 24.5% return over the past six months has topped the S&P 500 by 13 percentage points.

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 industrials stock boasting a durable advantage and two we’re steering clear of.

Two Industrials Stocks to Sell:

Ryder (R)

Market Cap: $8.94 billion

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Why Does R Worry Us?

1. Annual sales growth of 3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. High input costs result in an inferior gross margin of 19.7% that must be offset through higher volumes
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Ryder’s stock price of $230.91 implies a valuation ratio of 15x forward P/E. Read our free research report to see why you should think twice about including R in your portfolio.

SiteOne (SITE)

Market Cap: $5.39 billion

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

Why Do We Steer Clear of SITE?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings per share were flat over the last two years and fell short of the peer group average
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

SiteOne is trading at $121.68 per share, or 26.1x forward P/E. If you’re considering SITE for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Buy:

FTAI Aviation (FTAI)

Market Cap: $26.56 billion

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Do We Love FTAI?

1. Impressive 53.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 46.4% annually
3. Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day

At $259.40 per share, FTAI Aviation trades at 31.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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