In this article, we will discuss the 12 Best Industrial Stocks to Buy According to Wall Street Analysts.
The outlook for sectors tied to economic growth has improved significantly amid the US economy’s resilience in the face of tariffs and trade wars. With the prospect of the US economy plunging into recession receding, industrial stocks have edged higher, in line with the broader market rallying to record highs.
While focus has long been on tech megacaps, investors are increasingly turning to sectors trading at highly discounted valuations. That’s evident as the industrial sector is up by about 17% for the year, outperforming the average 16% for the S&P 500 year to date. The shift towards industrial stocks comes amid expectations that waning trade frictions will support the US economy.
“It does show that the market is more than just artificial intelligence,” said Brian Jacobsen, the chief economist at Annex Wealth Management, of the Dow’s advance to a record. “Industrials, transportation, and consumers can all benefit from the clarity on tax policy, the increasing clarity on tariff policy, and the evolving and nascent clarity on monetary policy.”
Sentiment around industrial stocks has improved amid heightened global risk appetite, elevated US rate-cut expectations, and solid financial results. U.S. President Donald Trump’s slashing of fuel-economy standards is another catalyst that has bolstered the sector’s outlook.
“There’s finally a bit of good news for a sector that has struggled to make sustained headway in terms of real upside for quite some time… the loosening of regulation might just allow the sector a bit of breathing room,” IG Chief Market Analyst Chris Beauchamp said.
As the tide turns in favor of industrials amid a resilient US economy, with the back of easing monetary policy, let’s look at some of the best stocks to buy according to Wall Street analysts.
Source: Pexels
Our Methodology
To identify the best industrial stocks favored by Wall Street analysts, we examined leading ETFs and leveraged the Finviz screener to narrow down on companies operating within the industrial sector. Our selection emphasized stocks with an upside potential exceeding 30%, while also noting the number of hedge funds holding positions in each as of the third quarter of 2025. Finally we ranked the stocks in ascending order based on their upside potential as of December 8.
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).
Best Industrial Stocks to Buy According to Wall Street Analysts
12. Loar Holdings Inc. (NYSE:LOAR)
Stock Upside Potential: 30.42%
Number of Hedge Fund Holders: 29
Loar Holdings Inc. (NYSE:LOAR) is one of the best industrial stocks to buy according to Wall Street analysts. Loar Holdings Inc. (NYSE:LOAR) has a Strong Buy rating from 4 Wall Street analysts. The average price target on the stock is $86.56, implying 30.42% upside potential from current levels of $66.37 a share.
On December 1, the company amended its Credit Agreement to increase the loan commitment by $175 million to $275 million. It also extended the term loan’s availability period through September 30, 2026. The adjustments follow record third-quarter sales of $127 million, driven by strong demand in the aerospace and defense sectors. It also achieved a net income of $19 million.
Meanwhile, analysts at Goldman Sachs initiated coverage of the stock on November 25 with a Buy rating and a $91 price target. Analyst Noah Poponak called Loar a high-quality aerospace aftermarket M&A compounder that is still early in its development but already stands out for having one of the strongest financial profiles in the group he follows. Goldman pointed to the company’s steady fundamentals and its growing presence in the aerospace components market as it continues to build its position in the industry.
Loar Holdings Inc. (NYSE:LOAR) is a diversified aerospace and defense company that designs and manufactures niche, critical components for commercial, business, and general aviation, focusing on creating a global alliance of specialized companies.
11. Resideo Technologies, Inc. (NYSE:REZI)
Stock Upside Potential: 30.45%
Number of Hedge Fund Holders: 46
Resideo Technologies Inc. (NYSE:REZI) is one of the best industrial stocks to buy according to Wall Street analysts. Resideo Technologies Inc. (NYSE:REZI) holds a consensus Moderate Buy rating with a $44 average target, implying 30.45% upside potential.
On December 3, Resideo Technologies Inc. unveiled a new X8S thermostat designed to enhance live video streaming from compatible doorbell cameras. Priced at $219.99, it comes with a 5-inch touchscreen that lets users view video feeds from Ring doorbells. It also includes monitoring capabilities for indoor air quality factors such as humidity and estimated carbon dioxide levels. The Honeywell Home X8S Smart Thermostat is designed for customers seeking a sleek, modern design and an energy-efficient solution. It’s Matter-certified and compatible with Amazon Alexa and Apple Home for easy voice control.
Earlier on November 12, Resideo Technologies shared its strategy at the Baird Global Industrial Conference, where CFO Mike Carlet said the company plans to separate the Products and Solutions unit from the ADI distribution business to give investors a clearer view of each operation. The firm is dealing with short term pressure from the new ERP system at ADI, which cut EBITDA by about 15 million dollars in the third quarter and is expected to do the same in the fourth, along with a drop in HVAC related air product sales. Even so, Resideo posted $7.5 billion in revenue and a 10.5% adjusted EBITDA margin over the past year.
Leadership remains upbeat, pointing to growth in non HVAC products, the launch of the Elite Pro thermostat aimed at rivals like Nest and Ecobee, and ADI’s margin goals following the Snap One deal. The company expects mid single digit revenue growth and better margins over the next several years, supported by the business separation, supply chain improvements, new products, and a solid balance sheet.
Resideo Technologies, Inc. (NYSE:REZI) makes smart home technology for comfort, energy management, and safety, including thermostats (Honeywell Home), smoke detectors, security systems, and water management, and also operates ADI Global Distribution, a major wholesale distributor of security, fire, and low-voltage products to professionals worldwide.
10. CNH Industrial N.V. (NYSE:CNH)
Stock Upside Potential: 33.16%
Number of Hedge Fund Holders: 42
CNH Industrial N.V. (NYSE:CNH) is one of the best industrial stocks to buy according to Wall Street analysts. CNH Industrial N.V. (NYSE:CNH) commands a Moderate Buy rating from 14 Wall Street analysts, made up of 8 Buys, 5 Holds, and 1 Sell ratings. The average price target on the stock is $12.61, implying 33.16% upside potential from current levels of $9.47 a share.
On November 20, the company priced a €500 million offering of 3.625% notes due in 2033. The pricing on the notes was part of the company’s push to strengthen its financial position as it tries to repay existing debt. The pricing on the offering follows a decline in full-year profit as the company scales back tractor production to avoid a supply glut amid sluggish demand.
The company expects its full-year adjusted profit to range between 44 cents and 50 cents, down from its previous guidance of 50 cents to 70 cents.
“Market fundamentals remain uncertain and challenging for our farmers and it is difficult to say if we will enter 2026 with more visibility or even more momentum,” CEO Gerrit Marx said on a post-earnings conference call.
Consequently, analysts at JPMorgan downgraded the stock to Underweight on November 28 due to weaker-than-expected guidance. The investment bank maintains a $10 price target on the stock.
CNH Industrial N.V. (NYSE:CNH) is a global leader in capital goods for agriculture and construction, designing, producing, and selling machinery like tractors (Case IH, New Holland Agriculture) and construction equipment, plus providing financial services (CNH Industrial Capital) to support these sectors, focusing on innovation for efficiency and sustainability.
9. AeroVironment, Inc. (NASDAQ:AVAV)
Stock Upside Potential: 37.49%
Number of Hedge Fund Holders: 37
AeroVironment, Inc. (NASDAQ: AVAV) is one of the best industrial stocks to buy according to Wall Street analysts. AeroVironment, Inc. (NASDAQ:AVAV) commands a Strong Buy consensus rating from 15 Wall Street analysts. The average price target on the stock is $389.57% implying 37.49% upside potential from current levels of $284.05 a share.
On December 2, the company unveiled the next phase of its AV_Halo unified mission software platform. AV_Halo CORTEX is the next-generation intelligence fusion and analysis environment, and AV_Halo MENTOR is the warfighter readiness suite that spans immersive virtual and/or augmented reality (VR/AR) weapons training and mission rehearsal.
The new platform is designed to unify multi-domain command and control, AI-enhanced intelligence, and autonomous targeting into a single, open-standard ecosystem. The integration of CORTEX and MENTOR should enable deeper intelligence fusion and more sophisticated operators’ awareness.
“CORTEX and MENTOR extend AV_Halo’s role as the connective tissue across missions—fusing global information, AI-powered analytics, and immersive training into a single ecosystem that helps warfighters outpace threats, reduce risk, and make better decisions at mission speed,” said Wahid Nawabi, AV Chairman, President, and Chief Executive Officer.
On December 5, AeroVironment, Inc. appointed Milancy Harris as Vice President and Chief Security Officer. Harris previously served as Acting Under Secretary of Defense for Intelligence and Security and has held senior positions across major national security agencies, along with private sector experience at Meta. She will guide the company’s security strategy across all operations.
Meanwhile, on November 25, Andre Madrid from BTIG reiterated that AeroVironment is a Buy with a $415 price target.
AeroVironment, Inc. (NASDAQ:AVAV) is a defense technology leader creating intelligent, multi-domain robotic systems, including drones (UAS), loitering munitions, and ground vehicles, for defense, government, and commercial use, providing advanced solutions for surveillance, reconnaissance, and strike, leveraging AI, software, and connectivity for situational awareness and mission success in air, land, sea, space, and cyber.
8. AAON, Inc. (NASDAQ:AAON)
Stock Upside Potential: 37.97%
Number of Hedge Fund Holders: 29
Aaon Inc. (NASDAQ:AAON) is one of the best industrial stocks to buy according to Wall Street analysts. Aaon Inc. (NASDAQ:AAON) commands a Strong Buy rating from 5 Wall Street analysts, who have issued 5 Buy ratings. The average price target on the stock is $119, implying 37.97% upside potential from current levels of $86.25 a share.
On December 1, AAON, Inc. announced that Doug Wichman will be promoted to executive vice president and general manager of its AAON Business Unit, effective January 1, 2026, where he will lead strategic planning, product development, engineering, R&D, and collaborate with sales and operations on marketing, production, and procurement for the company’s semi-custom HVAC solutions.
Ryan Merkel of William Blair maintained a Buy rating on the stock, citing the company’s unique market approach as a key differentiator. In addition, the analyst has touted the company’s strong relationship with major hyperscalers customers, including Amazon, which strengthen its market position.
In addition, increased focus on delivering solutions for thermal management continues to differentiate the company in the segment. The ability to deploy advanced technologies, like liquid-to-liquid direct-to-chip cooling, also underscores the innovative edge. Consequently, the Wall Street analyst expects the company to enjoy significant growth, which should lead to a positive outlook.
AAON, Inc. (NASDAQ:AAON) designs and manufactures high-efficiency, customizable Heating, Ventilation, and Air Conditioning (HVAC) systems and components for commercial, industrial, and data center applications, focusing on rooftop units, air handlers, chillers, and energy recovery systems that offer superior performance.
7. Sterling Infrastructure Inc. (NASDAQ:STRL)
Stock Upside Potential: 39.05%
Number of Hedge Fund Holders: 25
Sterling Infrastructure Inc. (NASDAQ:STRL) is one of the best industrial stocks to buy according to Wall Street analysts. Sterling Infrastructure Inc. (NASDAQ:STRL) commands a Strong Buy rating from 3 Wall Street analysts. The average price target on the stock is $455, implying 39.05% upside potential from current levels.
On November 25, William Blair reiterated an Outperform rating on the stock, impressed by the company’s dominant position in the US data center market. The research firm has echoed the company’s track record of completing projects ahead of schedule. The record has been the catalyst behind the company’s impressive 6.2% revenue growth over the past year.
In addition to growth around data centers, Sterling Infrastructure also boasts an impressive pipeline that includes site development work for semiconductor, food processing, and liquid natural gas customers. Expansion into new markets such as Texas is also expected to strengthen the company’s growth trajectory.
Sterling Infrastructure Inc. (NASDAQ:STRL) is an industrial company that specializes in E-infrastructure, Transportation, and Building Solutions. It provides advanced, large-scale site development services for data centers, manufacturing, e-commerce distribution centers, warehousing, power generation, and more.
6. Leonardo DRS, Inc. (NASDAQ:DRS)
Stock Upside Potential: 39.96%
Number of Hedge Fund Holders: 29
Leonardo DRS Inc. (NASDAQ:DRS) is one of the best industrial stocks to buy according to Wall Street analysts. On December 5, Canaccord Genuity analyst Austin Moeller reiterated a Buy rating on the stock with a $50 price target. The positive stance also coincided with Truist Financial analyst Michael Ciarmoli reiterating that Leonardo DRS is a Buy.
The wave of bullish ratings comes after the company signed a contract with Chaiseri Defense Systems to provide an advanced Battle Management System (BMS). Leonardo DRS and Chaiseri have strengthened their partnership with a new contract to bring advanced battle management system capabilities to the Royal Thai Army, supporting Thailand’s ongoing push to modernize its forces.
Under this agreement, Leonardo DRS will supply its established BMS technology along with project management, engineering, and support services. Chaiseri will take responsibility for installation, training, commissioning, and long-term upkeep within Thailand. The system uses the latest tactical computing tools to improve real time situational awareness across vehicles, command posts, and brigade operations. Leaders from both companies noted that this collaboration will help reinforce Thailand’s defense ecosystem and broaden local industry involvement.
This contract builds on the cooperation the two companies formed in 2024 and reflects Leonardo DRS’s wider focus on advancing C4 and C5 technologies for the United States and its partners. The company is putting significant resources into new tactical computing, AI driven processing, and modular open systems that improve sensor fusion and situational awareness while easing the workload on commanders and crews. Working together, the two firms aim to provide long lasting, high quality capabilities and support the continued growth of Thailand’s defense industry.
Leonardo DRS, Inc. (NASDAQ:DRS) is a major U.S. defense technology company that designs, develops, and supplies advanced electronics, sensors, power systems, and network solutions for military forces (like the U.S., Dodd, and allies) and intelligence agencies, focusing on naval systems, ground combat, avionics, and cyber/security.
5. Aecom (NYSE:ACM)
Stock Upside Potential: 40.98%
Number of Hedge Fund Holders: 9
Aecom (NYSE:ACM) is one of the best industrial stocks to buy according to Wall Street analysts. Aecom (NYSE:ACM) holds a Strong Buy consensus rating from 11 analysts with a $144.50 target, implying 41% upside from its current share price of $102.50.
Analysts at RBC Capital reiterated their outperform rating for Aecom on November 24 and raised the price target to $139. The stance follows company’s Chief Financial & Operations Officer, Gaurav Kapoor, and SVP of Corporate Finance & Treasurer, Will Gabrielski, reiterating that artificial intelligence represents an opportunity rather than a threat to the business.
The management team expects AI to enhance engineering expertise, client relationships, and internal data management. The technology is expected to supplement the company’s proprietary mathematical models, for which it owns both the code and the data. An analyst at Baird has echoed similar sentiments, reiterating that Aecom’s AI strategy is ahead of its peers and supports the company’s margin targets through 2029.
On November 21, Baird downgraded AECOM Technology from Outperform to Neutral while keeping its $143 price target, noting the company’s advanced AI strategy positions it ahead of peers and supports near-term growth, reflected in its low PEG ratio of 0.51. While confident in AECOM’s ability to reach 20% margin targets, Baird cautioned that AI implementation could pressure revenue toward the end of its 2029 plan. The firm added that although AECOM’s end-market exposure may be less attractive than rival Jacobs, its AI applications are more relevant and should drive EPS growth. The downgrade, Baird emphasized, reflects valuation concerns rather than doubts about earnings potential.
Aecom (NYSE:ACM) is a global infrastructure consulting firm that provides professional services, including planning, design, engineering, program, and construction management, for complex projects in transportation, buildings, water, energy, and the environment, helping clients from governments and businesses build sustainable legacies.
4. Archer Aviation Inc. (NYSE:ACHR)
Stock Upside Potential: 41.35%
Number of Hedge Fund Holders: 37
Archer Aviation Inc. (NYSE:ACHR) is one of the best industrial stocks to buy according to Wall Street analysts. Archer Aviation Inc. (NYSE:ACHR) commands a consensus Moderate Buy rating from 6 Wall Street analysts, comprising 4 Buys and 2 Holds. The average price target on the stock is $12.17, implying 41.35% upside potential from current levels of $8.61.
On December 3, the company embarked on an ambitious plan focused on a comprehensive air taxi network across the Miami metropolitan area. The primary goal is to connect populated centers with 10 to 20-minute electric flights. The company is to offer Midnight aircraft that can carry four passengers, expected to replace hour-long commutes with electric flights.
At the start, the air taxi would link Miami, Fort Lauderdale, Boca Raton, and West Palm Beach, offering travelers an alternative transportation network. Archer has already secured strategic partnerships with key infrastructure and real estate players. For starters, Hard Rock Stadium and Apogee Golf Club are to allow the company to utilize their helipad infrastructure.
The company has inked a strategic collaboration on December 2, with Karem Aircraft that will give it access to advanced military-grade rotor and tiltrotor technologies for next-generation aircraft development.
Archer Aviation Inc. (NYSE:ACHR) designs, builds, and operates electric vertical takeoff and landing (eVTOL) aircraft, such as its Midnight model, for urban air mobility (UAM). It also provides quick, short-distance air taxi services, aiming to function like an Uber of the sky by offering app-based travel between city vertiports, partnering with airlines and ride-share companies.
3. Axon Enterprise, Inc. (NASDAQ:AXON)
Stock Upside Potential: 47.85%
Number of Hedge Fund Holders: 61
Axon Enterprise Inc. (NASDAQ:AXON) is one of the best industrial stocks to buy according to Wall Street analysts. Axon Enterprise Inc. (NASDAQ:AXON) holds a strong Buy rating from 14 Wall Street analysts, including 13 Buy and 1 Hold. The average price target on the stock is $814.58, implying 47.85% upside potential from current levels of $550.67 a share.
On November 20, analysts at TD Cowen reiterated their Buy rating and $925 price target for Axon Enterprise. The research firm also highlighted Industrials as one of the “Best Ideas for 2026,” noting that the company is on the cusp of another year of high growth at approximately $3 billion in scale. The remarks come on the back of the company’s 32% revenue growth over the past 12 months and 31% five-year compound annual growth rate.
Following the recent pullback, TD Cowen views Axon Enterprise’s share price as a compelling entry point at approximately 10 times EV/CY27E sales. A connected hardware/software ecosystem, strong new product innovation, and a loyal customer base are expected to drive growth.
Axon Enterprise, Inc. (NASDAQ:AXON) is a technology company that develops connected public safety and security solutions for law enforcement, military, and commercial markets. Its mission is to “Protect Life” by providing an integrated ecosystem of devices, software, and services.
2. Hillman Solutions Corp. (NASDAQ:HLMN)
Stock Upside Potential: 50.00%
Number of Hedge Fund Holders: 24
Hillman Solutions Corp (NASDAQ: HLMN) is one of the best industrial stocks to buy according to Wall Street analysts. On December 3, analysts at Stifel reiterated a Buy rating on Hillman Solutions Corp (NASDAQ:HLMN) and a $12.20 price target, citing it as a leading hardware products distributor.
The firm noted surprise at the stock’s 4% decline following earnings, especially as the S&P 500 gained 0.9% during the same period. Stifel projects just over 2% EBITDA growth for fiscal 2026, supported by expectations of a flat home improvement market and Hillman’s ability to weather a delayed recovery. Hillman’s current EBITDA is $247.67 million, with revenue growth of 4.47% over the past year.
The note described Hillman as the leading hardware distributor positioned to benefit disproportionately from an eventual rebound in home improvement, citing gross profit margins of 48.76% as evidence of its strong market position. Stifel also emphasized valuation, highlighting that Hillman trades at a 31% discount to peers, which it views as compelling given the company’s near-term certainty, long-term growth prospects, and increasing optionality.
On November 24, Cannaccord Genuity analyst Brian McNamara reiterated a Buy rating on the stock and set a $15 price target. Currently, the stock commands a Strong Buy consensus rating on Wall Street, with 3 Buy and 1 Hold ratings. Its average price target is $13.05, implying 50% upside potential from current levels of $8.70 a share.
Hillman Solutions Corp (NASDAQ: HLMN) provides a vast range of hardware and home improvement products, along with related merchandising and digital services, to retailers like home centers, hardware stores, and mass merchants across North America, focusing on fasteners, protective gear, and robotic key/tag services, ensuring efficient, in-store product availability for customers.
1. NuScale Power Corporation (NYSE:SMR)
Stock Upside Potential: 70.87%
Number of Hedge Fund Holders: 26
Nuscale Power Corp (NYSE:SMR) is one of the best industrial stocks to buy according to Wall Street analysts. On November 25, analysts at UBS reiterated a Neutral rating on Nuscale Power Corp (NYSE:SMR) and cut the price target to $20 from $38.
The price target cut, which still implies significant upside potential, comes amid concerns that the company faces near-term headwinds, including the Fluor stake monetization and a push for new equity to fund milestone payments.
Nevertheless, the research firm expects the solid business model and magnitude of future revenue to strengthen the long-term outlook. Meanwhile, Craig Hallum analyst Eric Stine reiterated a Buy rating on the stock on November 25.
On November 17, NuScale Power Corporation announced governance updates in an SEC filing, including the appointment of David Tonnel, 54, as chief accounting officer and principal accounting officer effective, succeeding interim VP Jacqueline F. Engel; Tonnel, who joined NuScale in March 2025 after senior roles at Transocean Ltd., has no related-party ties or material interests requiring disclosure. The board also amended bylaws to formally designate the chief accounting officer as a company officer, removed the controller requirement, and adopted a deferred compensation plan allowing non-employee directors to defer cash retainers and restricted stock units under Section 409A of the Internal Revenue Code.
NuScale Power Corporation (NYSE:SMR) develops and commercializes advanced Small Modular Reactor (SMR) technology to provide safe, scalable, and carbon-free nuclear energy for electricity, data centers, hydrogen production, and industrial heat, aiming to accelerate the global energy transition with its NRC-certified, factory-built reactor modules.
While we acknowledge the potential of SMR 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 SMR and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best 52-Week High Stocks to Buy Right Now and 10 Best Cybersecurity Stocks to Buy Under $50.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
