In this article, we will look at the 11 Best Industrial Stocks to Buy Right Now.
The overall stock market has bounced back from the April tariff-triggered sell-off. The Industrial sector stocks have come out on top, climbing to the top of the S&P 500 leaderboard. Manufacturing and transportation stocks are up by about 7.8% for the year, outperforming the S&P 500, which is up by about 1.9%.
According to Jeff Buchbinder, chief equity strategist at LPL Financial, the industrial sector is benefiting from the pro-industrial narrative.
“The whole ‘America First, Buy US’ is a really pro-industrial narrative,” said Jeff Buchbinder, chief equity strategist at LPL Financial. “A healthy bull market is led by the cyclical sectors that benefit most from economic growth.”
Likewise, the industrials sector is pricing in a lot of optimism amid the growing risk of recession. “The sector is pricing in a lot of optimism now. Even though the trade risk is lower now, it is still there and you cannot dismiss it,” Buchbinder added.
Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, believes industrials and other cyclical companies will continue outperforming if there is no significant trade shock.
“Industrials and banks are the two sectors you want to buy if you believe the economy is either going to accelerate or not slow down as much as expected,” Tentarelli said.
With that in mind, let’s look at 11 Best Industrial Stocks to Buy Right Now.
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Our Methodology
To make the list of 11 Best Industrial Stocks to Buy Right Now, we scanned the US equity markets, focusing on stocks outperforming the overall market. We concentrated on industrial stocks with significant year-to-date gains and are popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on hedge fund holdings as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Industrial Stocks to Buy Right Now
11. Thomson Reuters Corporation (NYSE:TRI)
Year to Date Return as of June 20: 21.48%
Number of Hedge Fund Holders: 32
Thomson Reuters Corporation (NYSE:TRI) is one of the 11 best industrial stocks to buy right now. On June 16, Wells Fargo analyst Jason Haas reiterated an ‘Equal-Weight’ on the stock. The analyst also hiked the stock’s price target to $213 from $187. The analyst rating underscores a balanced view of the stock’s near-term performance.
The price target adjustment follows a meeting with Fisher Phillips’s Chief Knowledge and Innovation Officer, Evan Shenkman. The law firm is best known for its early adoption of legal tech. Consequently, the law firm reiterated that Thomson Reuters remains well-positioned within legal tech.
Thomson Reuters Corporation (NYSE:TRI) is an industrial company that specializes in offering specialty business services. Its Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics for law firms and governments.
10. CNH Industrial N.V. (NYSE:CNH)
Year to Date Return as of June 20: 15.60%
Number of Hedge Fund Holders: 34
CNH Industrial N.V. (NYSE:CNH) is one of the 11 best industrial stocks to buy right now. On June 16, Truist Securities reiterated a ‘Buy’ rating and a $16 price target. The research firm remains confident about the company’s strong market position in Latin America. It also echoed prospects of significant margin improvement.
The company is a key player in Brazil through its Case IH and New Holland brands. Consequently, it benefits from strong local manufacturing as Latin America accounts for the most significant share of the company’s margins. CNH Industrial has identified market share growth potential in the horsepower equipment, planters, and sprayers segment.
According to Truist Securities, CNH Industrial has improved its Latin America margins by implementing self-help measures. It has also achieved greater manufacturing efficiencies. Likewise, the research firm sees additional improvement opportunities.
CNH Industrial N.V. (NYSE:CNH) is an equipment and services company that engages in the design, production, marketing, sale, and financing of agricultural and construction equipment. Its Agriculture segment designs, manufactures and distributes farm machinery.
9. L3Harris Technologies, Inc. (NYSE:LHX)
Year to Date Return as of June 20: 20%
Number of Hedge Fund Holders: 42
L3Harris Technologies, Inc. (NYSE:LHX) is one of the 11 best industrial stocks to buy right now. On June 17, the company announced it had secured a $487.3 million cost-plus fixed contract from the US Department of Defense.
The contact is for the modernization of enterprise terminals. The company will also offer depot and engineering support services as part of the contract. The Army Contracting Command at Aberdeen Proving Ground is to manage the five-year contract slated for completion in 2030. An area where the contract will be implemented will be determined with each order as the project progresses.
The Army and L3Harris have already partnered on a number of similar contracts. In January, the company received a $300 million buy order to supply the Army with handheld, manpack, and small form fit, or HMS, radios. The contract falls under a possible 10-year, $12.7 billion contract Harris was given in 2016.
L3Harris Technologies, Inc. (NYSE:LHX) is a global aerospace and defense technology company that provides end-to-end solutions across air, land, sea, space, and cyber domains. It specializes in complex intelligence, surveillance, reconnaissance (ISR), and electronic warfare (EW) systems.
8. General Dynamics Corporation (NYSE:GD)
Year to Date Return as of June 20: 21.48%
Number of Hedge Fund Holders: 46
General Dynamics Corporation (NYSE:GD) is one of the 11 best industrial stocks to buy right now. On June 18, the company was awarded a $986.8 million contract modification by the US Department of Defense for submarine development work.
The cost-plus-fixed-fee modification contract funds additional component development and class lead yard support. The new contract will also support submarine Industrial Base supplier development enhancements for Columbia-class ballistic missile submarines. Additionally, the contract modification combines $16 million in United Kingdom funding to support the joint U.S. Columbia-class and U.K. Dreadnought-class common missile compartment program.
The contract includes programs directly supporting the Navy, Department of Defense, and Office of Management and Budget’s guidance. The funding supports strategic sourcing, supplier development, and infrastructure upgrades, which are included in the president’s fiscal 2025 budget.
General Dynamics Corporation (NYSE:GD) is a global aerospace and defense company. It designs, manufactures, and serves diverse products and services, including business jets, combat vehicles, nuclear-powered submarines, and information technology solutions.
7. Rockwell Automation, Inc. (NYSE:ROK)
Year to Date Return as of June 20: 14.56%
Number of Hedge Fund Holders: 46
Rockwell Automation Inc. (NYSE:ROK) is one of the 11 best industrial stocks to buy right now. On June 17, the company marked a significant milestone in industrial control architecture with the launch of the PointMax I/O system.
The new system addresses significant challenges in manufacturing, the key being the need for flexible control systems that can adapt to changing production requirements. By integrating with Logix 5000 controllers, the PointMax I/O system can simplify device connectivity.
The system can also enhance maintenance capabilities and provide manufacturers with greater control. The system is designed for new machine builds and existing equipment, which suits the demand for fast-paced manufacturing operations.
“Customers are looking for smarter, more adaptable solutions that remove friction from system design and maintenance,” says Rockwell Automation’s product manager, Karthikeyan Mahalingam. “PointMax I/O delivers on that need by offering a simpler way to connect devices, gather insights and keep operations running smoothly. It’s about giving manufacturers more control and fewer constraints as they scale.”
Rockwell Automation Inc. (NYSE:ROK) is a global leader in industrial automation and digital transformation. It provides solutions that help manufacturers optimize operations, increase efficiency, and enhance process control. This includes various products and services, from control systems and software to consulting and integration services.
6. Deere & Company (NYSE:DE)
Year to Date Return as of June 20: 25.54%
Number of Hedge Fund Holders: 53
Deere & Company (NYSE:DE) is one of the 11 best industrial stocks to buy right now. On June 18, analysts at Bernstein reiterated a ‘Market Perform’ rating on the stock and a $548 price target. The bullish stance follows an analyst’s meeting with the company’s management in Brazil.
Bernstein expects operations in Brazil to bolster the company’s financial performance. It expects large agriculture revenues in the country to grow by two to three times over the next five to ten years. The expansions will likely trigger a 15% to 20% earnings growth across various business cycles.
The research firm also reiterated the ‘Market Perform’ rating on expectations of a 25-year history of local investment in Brazil, strengthening Deere’s competitive edge. Plans to invest $25 million for research development and the $100 million expansion of the Catalao factory are other developments that will strengthen the company’s growth metrics.
According to Bernstein, a strong dealer network and improved localized product offerings have helped Deere gain significant market share in Brazil. Therefore, the research firm believes the company is better positioned than AGCO (NYSE:AGCO).
Deere & Company (NYSE:DE) is a global leader in designing, manufacturing, and distributing advanced agricultural, construction, and forestry equipment. It also produces engines and drivetrain components for industrial and marine equipment and provides financing solutions for its equipment and other related products.
5. Northrop Grumman Corporation (NYSE:NOC)
Year to Date Return as of June 20: 5.69%
Number of Hedge Fund Holders: 54
Northrop Grumman Corporation (NYSE:NOC) is one of the 11 best industrial stocks to buy right now. On June 18, the company announced it is broadening its use of Nvidia technology to advance its space solutions. While focusing on AI applications for spacecraft operations, the company will integrate space applications into the NVIDIA Omniverse simulation platform.
Northrop will also utilize NVIDIA Isaac Lab to develop artificial intelligence capabilities for cognitive spacecraft operations. Using Nvidia’s technology, the company hopes to create end-to-end AI robotics technology that enables operations in complex environments. It also plans to implement agentic AI throughout spacecraft operations.
Along with end-to-end robotics, Northrop Grumman will use agentic AI to create and carry out spacecraft instructions and mission plans at every stage of spacecraft operations. The development of advanced AI solutions is expected to enable new mission capabilities while strengthening Northrop Grumman’s position as an aerospace and defense technology leader.
Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense technology company. It focuses on pioneering technologies and solving complex problems in space, aeronautics, defense, and cyberspace to advance international security and human discovery.
4. Howmet Aerospace Inc. (NYSE:HWM)
Year to Date Return as of June 20: 53.65%
Number of Hedge Fund Holders: 56
Howmet Aerospace Inc. (NYSE:HWM) is one of the 11 best industrial stocks to buy right now. On June 17, the company announced expansion plans in Morristown, Tennessee. It will mark the company’s second expansion in less than a year and is expected to create 217 jobs.
Expansion into Morristown is part of the company’s push to continue playing a critical role in enabling next-generation quieter, cleaner, and more efficient engines. Its structural equipment is mainly used in mission-critical performance and efficiency in aerospace and defense applications.
“Today’s announcement underscores how vital partnerships are to the economic success of our state and our local communities. [..] Howmet Aerospace is expanding for the second time in less than a year because of the relationships formed during the recruitment process, and we are honored to join in announcing new jobs for one of Hamblen County’s top employers,” TNECD Commissioner Stuart C. McWhorter noted.
Howmet Aerospace Inc. (NYSE:HWM) is a global provider of advanced, engineered solutions for the aerospace and transportation industries. It specializes in producing components for aircraft engines and airframes, fastening systems, and forged aluminum wheels for commercial transportation.
3. AerCap Holdings N.V. (NYSE:AER)
Year to Date Return as of June 20: 19.23%
Number of Hedge Fund Holders: 64
AerCap Holdings N.V. (NYSE:AER) is one of the 11 best industrial stocks to buy right now. On June 17, the company announced it has entered into exclusive negotiations with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M).
The two are in discussions about forming a joint venture to lease LEAP engines. The initiative seeks to support AFI KLM E&M’s LEAP premier MRO customers by ensuring operational continuity for Airbus A320neo and Boeing 737 MAX operators.
Under the proposed joint venture, both companies will own and manage a pool of LEAP-1A and LEAP-1B spare engines. The engines will come in handy to ensure uninterrupted operations for airlines whose aircraft engines are undergoing quick-turn or performance restoration.
The joint venture builds on a strong relationship between AerCap and AFI KLM in the field of lease engine support. It also builds on core strengths such as AerCap’s expertise in aircraft and engine leasing and asset management and AFI KLM experience as an airline-affiliated MRO.
AerCap Holdings N.V. (NYSE:AER) is a global aircraft leasing company engaged in the leasing, financing, sale, and management of commercial aircraft and engines. It operates through a single segment—Commercial Flight Equipment—and also offers engine leasing, aircraft parts, and asset management services. Its operations span the UK, U.S., and other international markets.
2. Ferguson Enterprises Inc. (NYSE:FERG)
Year to Date Return as of June 20: 23.60%
Number of Hedge Fund Holders: 75
Ferguson Enterprises Inc. (NYSE:FERG) is one of the 11 best industrial stocks to buy right now. On June 18, Goldman Sachs initiated coverage of the stock with a ‘Buy’ rating and a $280 price target. The investment bank’s bullish stance is in response to improving pricing trends and execution at the company.
In its third quarter of fiscal 2025, Ferguson Enterprise delivered a 5% organic growth as pricing turned flat after six consecutive quarters of deflation. Improving price trend and execution triggered a 50 basis point year-over-year improvement in third quarter gross margin.
Goldman Sachs expects the company’s EBITA margin to come at the top end of the new guidance of 8.5% to 9%. The improvement should be driven by improved commodity pricing and finished good pricing. Additionally, the investment bank expects Ferguson Enterprise to benefit from the inflationary impact of US tariffs.
Ferguson Enterprises Inc. (NYSE:FERG) is an industrial company that distributes plumbing and heating products. It also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, to residential and non-residential customers.
1. RTX Corporation (NYSE:RTX)
Year to Date Return as of June 20: 25.74%
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is one of the 11 best industrial stocks to buy. On June 18, RTX Corporation signed a 10-year Memorandum of Understanding (MoU) with Singapore’s Economic Development Board (EDB), solidifying its long-term strategic commitment to the country. The partnership aims to advance collaboration in areas such as aerospace maintenance, advanced manufacturing, AI, and talent development, reinforcing Singapore’s role as a vital hub in RTX’s global operations.
Executives from both sides emphasized the MoU’s significance in deepening innovation and technological capabilities in the Asia-Pacific region. The collaboration will support investments in foundational technologies and next-generation platforms, strengthening the local ecosystem and contributing to the region’s aerospace growth.
Singapore is RTX’s third-largest commercial footprint globally and home to over 4,300 employees across 12 sites. With more than 50 years of presence in the country, RTX continues to expand its capabilities in response to rising demand from both defense and commercial aviation customers across Asia Pacific.
RTX Corporation (NYSE:RTX) is a global aerospace and defense firm headquartered in Arlington, Virginia. Founded in 1934, it serves commercial, military, and government clients through three segments: Collins Aerospace, which provides aviation systems, interiors, and aftermarket services; Pratt & Whitney, which offers aircraft engines and auxiliary power units; and Raytheon, which specializes in threat detection and defense technologies.
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