In this article, we’ll look at the 11 High-Growth Industrial Stocks to Buy.
Industrial stocks were a bag of mixed fortunes in 2025. While some delivered impressive returns, others were on edge as they capitulated under the weight of US trade war and tariffs. Nevertheless, the sector has started the year on a roll, with the S&P 500 industrials sector already up 10.68%, outperforming the overall market.
The impressive performance comes on the back of easing US tariffs and a resilient US economy. Meanwhile, industrial stocks are also catching a bid as money moves out of tech and into laggards elsewhere.
“We’re starting to get an embedded leadership shift that’s undeniable at this point,” said Mark Hackett, chief market strategist at Nationwide.
President Donald Trump’s resort to tariffs as a way of boosting US manufacturing has turned out to be a double-edged sword for the industrial sector. Levies from raw materials amid the tariff policy have proved to be a significant challenge for the sector.
“The policy cadence has been more foe than friend for industrials in the near term,” said Joe Gilbert, a portfolio manager at Integrity Asset Management. “Industrials have taken their medicine first with tariffs and policy halts and the candy — tax expensing — will come later.”
Meanwhile, BTIG analysts expect some industrial companies to benefit from heightened spending on defense and technological innovation. The White House’s request for a $1 trillion national defense budget, as NATO countries also increase defense spending to 5% of GDP could turn out to be a major tailwind for the industrial sector.
While the industrial sector appears fully valued, Morningstar strategists see compelling investment opportunities across multiple groups. The strategists see opportunities in the farm and heavy construction machinery industries, as new technologies also transform the farming equipment industry. They also expect the aerospace and defense industry segment to hold up well.
Our Methodology
To compile a list of 11 high-growth industrial stocks to buy, we conducted a screening of Industrial listed companies with market capitalizations above $2 billion. We then applied a filter to identify stocks that achieved revenue growth exceeding 20% over the past five years and currently offer positive upside potential. We also detailed the number of hedge funds that hold stakes in the stocks in the third quarter of 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
Note: All data was sourced on February 20.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
High-Growth Industrial Stocks to Buy
11. WESCO International, Inc. (NYSE:WCC)
5-Year Sales Growth: 21.15%
Number of Hedge Fund Holders: 49
Stock Upside Potential: 1.95%
WESCO International, Inc. (NYSE:WCC) is one of the high-growth industrial stocks to buy. On February 11, KeyBanc Capital Markets reiterated an Overweight rating on WESCO International, Inc. (NYSE:WCC) and raised the price target to $340 from $304.
The price target hike comes on the heels of WESCO International delivering solid fourth-quarter 2025 results. Revenue in the quarter was up 10% year over year to $6.07 billion, as adjusted earnings per share came in at $3.40, falling short of consensus estimates of $3.89.
The company achieved record full-year revenue of $23.5 billion, up 8% year over year, as backlog increased 19% to a record level at year-end. Full-year adjusted earnings per share were up 5.6% to $12.91 compared to $12.23 a share delivered in 2024.
WESCO International expects the sales growth momentum to continue in 2026. The company is projecting 5% to 8% sales growth with an EBITDA margin of 6.8%. It also expects full-year adjusted EBITDA of between $14.50 and $16.50. KeyBanc remains confident about WESCO International’s outlook, insisting the guidance is conservative.
WESCO International, Inc. (NYSE:WCC) is a leading Fortune 500 company providing business-to-business supply chain solutions, logistics, and distribution of electrical, industrial, and communications products. Headquartered in Pittsburgh, Pennsylvania, it supports customers in the construction, utility, and broadband sectors across 50 countries.
10. FTAI Aviation Ltd. (NASDAQ:FTAI)
5-Year Sales Growth: 24.47%
Number of Hedge Fund Holders: 51
Stock Upside Potential: 10.34%
FTAI Aviation Ltd. (NASDAQ:FTAI) is one of the high-growth industrial stocks to buy. On February 17, FTAI Aviation Ltd. (NASDAQ:FTAI) closed the acquisition of seven off-lease Airbus aircraft from Air France. The acquisition is part of the company’s drive to modernize its narrow-body fleet.
The seven off-lease Airbus aircraft the company bought include one A318-100, four A319-100, and two A321-200. The acquisition underscores the company’s focus on creating asset value through innovative engine repair capabilities. It also affirms focus on delivering comprehensive fleet management solutions for global airline partners.
“As demand for our Maintenance, Repair and Exchange solutions continues to grow, expanding access to CFM56 engines is critical. We appreciate the long-standing partnership and look forward to supporting Air France’s evolving fleet strategy in the future,” said Stacy Kuperus, Chief Operating Officer at FTAI Aviation.
On January 21, Research firm Citizens raised the FTAI Aviation price target to $325 from $230, while maintaining a Market Outperform rating. According to the research firm, the company boasts a strong growth trajectory and solid free cash flow prospects.
FTAI Aviation Ltd. (NASDAQ:FTAI) is a specialized aerospace company focused on the Maintenance, Repair, and Exchange (MRE) of commercial jet engines, specifically the CFM56 and V2500 engines that power Airbus and Boeing aircraft. The company provides engine leasing, repair services, and aftermarket components (PMA parts) to airlines.
