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.
9. Planet Labs PBC (NYSE:PL)
5-Year Sales Growth: 20.61%
Number of Hedge Fund Holders: 40
Stock Upside Potential: 12.29%
Planet Labs PBC (NYSE:PL) is one of the high-growth industrial stocks to buy. On February 13, Planet Labs PBC (NYSE:PL) announced the formation of two advisory boards as it eyes strategic expansion and partnerships. The satellite imagery company confirmed the formation of a European Advisory Board and a Defense and Intelligence Advisory Board.
The European Advisory Board is to pursue strategic expansion opportunities in Europe. It will also focus on ensuring the company navigates the European policy landscape swiftly. On the other hand, the Defense and Intelligence Advisory Board is to provide counsel as Planet Labs develops solutions for national security and intelligence agencies.
The formation of the advisory boards comes on the heels of Planet Labs inking a strategic partnership with AXA Digital Commercial Platform. The two are joining forces to integrate satellite imagery into AXA’s risk management system to support monitoring of natural disasters. Planet Labs has carved out a niche by operating the largest Earth observation fleet of imaging satellites.
Earlier on January 29, Craig Hallum reiterated Planet Labs PBC as a Buy and increased the stock’s price target to $33 from $30. The price target hike is in response to differentiating factors in Planet Labs’ business model, including advanced AI implementation and a cost-to-performance ratio.
Planet Labs PBC (NYSE:PL) is an Earth-imaging company that operates a massive constellation of satellites to image the entire Earth’s landmass daily. It provides high-frequency satellite data, geospatial solutions, and AI-driven analytics to industries like agriculture, defense, finance, and government to track environmental, economic, and infrastructure changes.
8. LATAM Airlines Group S.A. (NYSE:LTM)
5-Year Sales Growth: 29.28%
Number of Hedge Fund Holders: 30
Stock Upside Potential: 14.92%
LATAM Airlines Group S.A. (NYSE:LTM) is one of the high-growth industrial stocks to buy. On February 4, LATAM Airlines Group S.A. (NYSE:LTM) delivered impressive fourth-quarter and full-year 2025 results, affirming robust financial performance across various metrics. In addition, the company touted expansion in both capacity and profitability as it enjoyed margin improvements across key business segments.
Fourth-quarter revenue was up 16.3% year over year to $3.95 billion, driven by a 20.3% increase in passenger revenue to $3.45 billion. Cargo revenue was up 9.6% to $425 million. Operating income increased 42.7% to $661 million, while net income increased 78.15% to $484 million. Full-year revenue was up 11.2% to $14.5 billion as net income increased 49.4% to $1.46 billion.
During the year, LATAM Airlines Group SA generated $1.4 billion in cash before shareholder returns, while also executing $585 million in share repurchases and distributing $605 million in dividends. The company ended the year on a strong cash position of $2.15 billion.
On February 12, Goldman Sachs downgraded LATAM Airlines Group SA to Neutral from Buy and cut the price target to $64.10 from $66.20. The downgrade comes amid concerns about the airline stock’s limited upside.
LATAM Airlines Group S.A. (NYSE:LTM) is the largest airline group in South America, providing extensive passenger and cargo air transportation services across five domestic markets (Brazil, Chile, Colombia, Ecuador, and Peru) and international routes to Europe, North America, Oceania, and Africa.
7. AAON, Inc. (NASDAQ:AAON)
5-Year Sales Growth: 20.67%
Number of Hedge Fund Holders: 29
Stock Upside Potential 16.75%
AAON, Inc. (NASDAQ:AAON) is one of the high-growth industrial stocks to buy. On February 3, analysts at DA Davidson reiterated a Buy rating and a $120 price target on AAON, Inc. (NASDAQ:AAON). The positive stance follows a meeting with the company’s management at the AHR Expo in Las Vegas.
The management team reiterated that the company boasts a robust product portfolio, well-positioned to address the needs of future data center builds. The research firm is especially confident about the company’s prospects, given the evolving capabilities of GPUs and coolant requirements. It is also optimistic about the company’s ability to achieve or exceed its 2027 financial framework.
AAON Inc has already increased its borrowing capacity under a revolving credit facility by $100 million to $600 million. The increase is part of an effort to secure much-needed financing to meet working capital needs as it also ramps up operations at the Memphis facility.
AAON, Inc. (NASDAQ:AAON) manufactures customizable, high-performance HVAC solutions for commercial and industrial buildings, including rooftop units, chillers, and data center cooling systems.
6. Copa Holdings, S.A. (NYSE:CPA)
5-Year Sales Growth: 35.20%
Number of Hedge Fund Holders: 21
Stock Upside Potential: 17.48%
Copa Holdings, S.A. (NYSE:CPA) is one of the high-growth industrial stocks to buy. On February 6, Raymond James reiterated a Strong Buy rating on Copa Holdings, S.A. (NYSE:CPA) and increased the price target to $185 from $164.
The price target hike comes as the research believes the stock is trading at an attractive valuation, backed by a strong balance sheet. In addition, it has touted the company’s geographically advantageous hub, which has enabled it to enjoy strong demand across its network. Raymond James expects the company to deliver strong free cash flow supported by structural strengths in its hub’s scale and scope.
On the other hand, on February 13, Goldman Sachs downgraded Copa Holdings to Neutral from Buy and raised the price target to $151 from $150. The downgrade comes amid concerns that there is little room for further meaningful improvement for the airline. However, it hiked the price target, citing the company’s strong operational momentum.
Copa Holdings, S.A. (NYSE:CPA) is a leading Latin American provider of airline passenger and cargo services, operating primarily through its subsidiaries, Copa Airlines and AeroRepública (Wingo).
5. Amentum Holdings, Inc. (NYSE:AMTM)
5-Year Sales Growth: 25.04%
Number of Hedge Fund Holders: 39
Stock Upside Potential: 21.06%
Amentum Holdings Inc. (NYSE:AMTM) is one of the high-growth industrial stocks to buy. On February 11, analysts at Citizens reiterated a Market Outperform and a $40 price target on Amentum Holdings Inc. (NYSE:AMTM).
The analysts remain bullish on the company’s outlook as it undergoes a transformative merger that has established it as a large service provider with diverse capabilities. The company is benefiting from its 2024 merger with Jacobs Solutions, which created a combined company that is a global leader in advanced engineering and innovative technology solutions.
The merger has allowed the company to align with federal priorities beyond the Department of Defense. Consequently, it has broadened its market potential, positioning it to benefit from AI data center investments that are accelerating opportunities.
On February 9, Amentum Holdings delivered solid first-quarter fiscal 2026 results with adjusted earnings per share of $0.54, more than double consensus estimates of $0.25. Revenue came in at $3.24 billion, down 5% year over year, due to contract transitions from consolidated to unconsolidated joint ventures.
Amentum Holdings (NYSE:AMTM) is a leading global provider of advanced engineering, technology, and mission-critical solutions for the U.S. government, its allies, and commercial clients.
4. United Airlines Holdings Inc. (NASDAQ:UAL)
5-Year Sales Growth: 30.93%
Number of Hedge Fund Holders: 66
Stock Upside Potential: 24.02%
United Airlines Holdings Inc. (NASDAQ:UAL) is one of the high-growth industrial stocks to buy. On February 16, United Airlines Holdings Inc. (NASDAQ:UAL) selected 300 GEnx engines to power its new 787 Dreamliners. The agreement also includes the supply of additional spare engines expected to bring the airline’s fleet to more than 200 GEnx-powered aircraft.
The agreement makes United Airlines the largest GEnx operator in the world. The engines in question are engineered with advanced materials and cutting-edge technologies. Therefore, they are able to deliver greater durability and time on wing for customers.
Meanwhile, Brazil’s competition authority, the Administrative Council for Economic Defense (CADE), has approved United Airlines’ planned $100 million investment in Azul S.A., which is undergoing bankruptcy proceedings. The US airline is to make the investment through the subscription of Azul shares.
The $100 million investment comes as United Airlines holds a small minority stake in the embattled Brazilian carrier. The investment is to raise its stake to 8% from 2% as the US airline looks to capitalize on Azul’s domestic presence in Brazil.
United Airlines Holdings Inc. (NASDAQ:UAL) is a major American airline that provides comprehensive passenger and cargo transportation services, operating an extensive domestic and international network across six continents. The company focuses on air travel, logistics, and related services.
3. American Airlines Group Inc. (NASDAQ:AAL)
5-Year Sales Growth: 25.80%
Number of Hedge Fund Holders: 43
Stock Upside Potential: 24.51%
American Airlines Group Inc. (NASDAQ:AAL) is one of the high-growth industrial stocks to buy. On February 13, American Airlines Group Inc. (NASDAQ:AAL) announced it has applied to operate flights in Venezuela.
The US airline intends to operate flights to Caracas and Maracaibo through its wholly owned subsidiary, Envoy. The airline plans to resume commercial flights between Miami and Venezuela, one of its more popular routes, before halting them. Envoy has submitted a six-page application to the federal Department of Transport for what it terms an exemption authority.
The Venezuela push comes on American Airlines, reiterating that it is poised for a strong year as it ramps up premium offerings. The airline is eyeing adjusted earnings per share of $1.70 to $2.70 for 2026, above consensus estimates of $2.01. It also expects cash flow from operations of $2 billion. The remarks follow record fourth-quarter 2025 revenue of $14 billion and full-year revenue of $54.67 billion.
Chief Executive Officer Robert Isom said in a statement. “We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships and loyalty program.”
On February 3, Citi placed American Airlines on a 90-day upside catalyst watch, maintaining its Buy rating and $21 price target. The firm said it is tactically bullish on the airline sector following Q4 results and expects February and March updates to show that concerns around Chicago are less severe than feared.
American Airlines Group Inc. (NASDAQ:AAL) is a major U.S. airline operating over 6,000 daily flights to 350+ destinations worldwide, offering passenger and cargo services through both its mainline and regional brands.
2. RB Global, Inc. (NYSE:RBA)
5-Year Sales Growth: 26.58%
Number of Hedge Fund Holders: 39
Stock Upside Potential: 26.83%
RB Global, Inc. (NYSE:RBA) is one of the high-growth industrial stocks to buy. On February 17, RB Global, Inc. (NYSE:RBA) delivered fourth-quarter and full-year 2025 results as the company advanced its strategic priorities. The company successfully strengthened margins and delivered healthy cash flows while also investing in strategic initiatives to support long-term growth and value creation.
Revenue in the fourth quarter was up 5% year-over-year to $1.2 billion as gross transaction value increased 4% to $4.3 billion. Service revenue was up 5% to $917.5 million, while inventory sales revenue increased 7% to $285.9 million. Full-year revenue increased 7% to $4.59 billion.
However, the company’s net income dropped 8% to $109.4 million, while diluted adjusted earnings per share increased 17% year-over-year to $1.11 per share. Likewise, full-year diluted adjusted earnings per share increased 15% to $3.49.
RB Global issued a solid 2026 outlook, expecting gross transaction value to increase by 5% to 8%. The company also expects adjusted EBITDA of between $1.47 billion and $1.53 billion, a significant improvement from $1.3 billion in 2025.
RB Global, Inc. (NYSE:RBA) is a leading omnichannel marketplace that facilitates the buying and selling of commercial assets, vehicles, and heavy equipment worldwide. Through its brands like Ritchie Bros. and IAA, it provides auction services, digital marketplaces, and data-driven asset management.
1. Intuitive Machines Inc. (NASDAQ:LUNR)
5-Year Sales Growth: 50.66%
Number of Hedge Fund Holders: 25
Stock Upside Potential: 28.34%
Intuitive Machines Inc. (NASDAQ:LUNR) is one of the high-growth industrial stocks to buy. On February 17, B. Riley reiterated a Buy rating on Intuitive Machines Inc. (NASDAQ:LUNR) and increased the price target to $25 from $20.
The price target hike comes amid expectations that Intuitive Machines will benefit from a favorable environment for space and lunar commercialization. The research firm expects the company to capitalize on increasing lunar activity, which will fuel demand for communications, navigation, and surface mobility services.
Intuitive Machines boasts a Near Space Network space data relay satellite constellation and lunar terrain vehicles. Its data relay satellites under the NSNS program are designed to deliver communications minutes to space agencies. Consequently, it is well-positioned to benefit from SpaceX’s shift in focus to building a city on the moon.
Earlier in the year, the company completed its $800 million acquisition of Lanteris Space Systems. With the acquisition, the company has strengthened its flight-proven manufacturing capabilities to enhance its ability to operate on the moon.
Intuitive Machines Inc. (NASDAQ:LUNR) is a Houston-based space exploration and technology company focused on commercializing lunar access through robotic delivery, data transmission, and infrastructure services. As the first commercial entity to soft-land on the Moon (2024), they develop Nova-C landers to transport payloads for NASA and commercial customers.
While we acknowledge the potential of LUNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LUNR and that has 100x upside potential, check out our report about this cheapest AI stock.
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