In this article, we will list the 5 Best Industrial Stocks to Buy in 2026. Please visit 8 Best Industrial Stocks to Buy in 2026 if you would like to see the extended list and the methodology behind it.
5. Redwire Corporation (NYSE:RDW)
Stock Upside Potential: 32.22%
Number of Hedge Fund Holders: 28
Redwire Corporation (NYSE:RDW) is one of the best industrial stocks to buy in 2026. On April 14, Redwire Corporation (NYSE:RDW) confirmed that it secured a purchase order valued at over $20 million in the first quarter. The order aligns with the company’s offering of services and systems to support the Navy and Marine Corps Small Tactical Unmanned Aircraft Systems Program Office.
Part of the contract entails the acquisition of the company’s Advanced Navigation version of the Stalker Block 30 unscrewed aerial system. The system is to join 250 existing Stalkers already deployed by the Marine Corps.
The system comes with air vehicles, ISR camera payloads, ground control stations, and associated support kits. The transition to Advanced Navigation configuration will ensure the US Marine Corps stays on the cutting edge of technology on an evolving modern battlefield.
Earlier in the month, Redwire Corporation expanded its UK presence by opening an office to support current and future programs for the UK Ministry of Defense. Backed by a local team, the company will be well-positioned to provide greater real-time support, rapid integration services, and localized lifecycle management for MOD initiatives.
Redwire Corporation (NYSE:RDW) is a space infrastructure and technology company that designs, manufactures, and supplies critical components, systems, and software for the spaceflight, satellite, and defense industries. Formed by consolidating several space firms, Redwire serves government agencies (like NASA and the Department of Defense), international space agencies, and commercial satellite operators.
4. QXO Inc. (NYSE:QXO)
Stock Upside Potential: 34.70%
Number of Hedge Fund Holders: 63
QXO Inc (NYSE:QXO) is one of the best industrial stocks to buy in 2026. On April 20, KeyBanc reiterated an Overweight rating on QXO Inc (NYSE:QXO) and raised the price target to $32 from $30.The price target hike is in response to the company reaching a $17 billion deal to acquire TopBuild.
The acquisition is poised to strengthen QXO’s prospects as the second-largest building products distributor in North America with more than $18 billion in combined company revenue. In addition, it will give the company scale in the insulation sector and expand its exposure to large, complex projects like data centers, where scale matters.
QXO has turned to acquisitions as part of its growth strategy. Last year, it completed an $11 billion acquisition of Beacon Roofing Supply. The company also tabled a bid for GMS and threatened a hostile takeover. KeyBanc raised its price target for the stock, impressed by the accelerated merger-and-acquisition activity that supports a higher earnings-growth trajectory.
QXO Inc. (NYSE:QXO) is a North American distributor of building products, specializing in roofing, waterproofing, and complementary materials. The company focuses on accelerating growth through technology, acquisitions, and scaling to become a leader in the $800 billion building products distribution market.
3. United Airlines Holdings, Inc. (NASDAQ:UAL)
Stock Upside Potential: 36.04%
Number of Hedge Fund Holders: 79
United Airlines Holdings Inc. (NASDAQ:UAL) is one of the best industrial stocks to buy in 2026. On April 14, United Airlines Holdings Inc. (NASDAQ:UAL) popped in the market amid reports that the company was considering a merger with American Airlines.
Reuters reports that United Airlines’ Scott Kirby has already pitched a potential merger of the two carriers to US President Donald Trump. A merger of the two would result in the largest-ever airline consolidation in more than a decade. The two airlines boast the largest fleets among US airlines, with more than 1,000 aircraft each.
In addition, the combined company would be in a better position to compete internationally, where foreign carriers control a majority of long-haul seat capacity to and from the US. Nevertheless, a merger of United Airlines and American Airlines won’t be easy. The deal is expected to face steep regulatory hurdles amid competition concerns, higher fares, and potential job losses. There are also concerns over route overlap in a concentrated US airline market.
United Airlines Holdings, Inc. (NASDAQ:UAL) is a major American airline holding company that operates United Airlines and provides global passenger and cargo air transportation. As one of the world’s largest carriers, it manages a vast global network, transporting passengers and cargo across six continents.
2. Alaska Air Group, Inc. (NYSE:ALK)
Stock Upside Potential: 38.06%
Number of Hedge Fund Holders: 45
Alaska Air Group Inc. (NYSE:ALK) is one of the best industrial stocks to buy in 2026. On April 20, Alaska Air Group Inc. (NYSE:ALK) suspended its 2026 financial guidance in response to the war in Iran triggering unpredictable changes in oil prices.
The airline expects oil prices to average $4.75 a gallon in April and $4.50 in the second quarter, which is expected to result in an additional $600 million in expenses. Higher energy prices will also result in a $3.60 headwind to earnings per share.
The warning came on the heels of the company delivering a wider-than-expected loss of $193 million, or $1.69 a share, compared to a loss of $166 million a year earlier. Revenue, on the other hand, was up 1% to $3.3 billion compared to $3.14 billion a year earlier, as premium demand continued to outperform. The first-quarter results were impacted by higher fuel prices and demand disruptions caused by rainstorms in Hawaii and civil unrest in Puerto Vallarta.
Alaska Air Group, Inc. (NYSE:ALK) is a major airline holding company parent to Alaska Airlines, Hawaiian Airlines, and Horizon Air that operates over 1,400 daily flights to more than 140 destinations across North America, Central America, Asia, and the Pacific. It provides passenger and cargo air transportation, focusing on West Coast connectivity and premium leisure travel.
1. Axon Enterprise, Inc. (NASDAQ:AXON)
Stock Upside Potential: 74.45%
Number of Hedge Fund Holders: 68
Axon Enterprise, Inc. (NASDAQ:AXON) is one of the best industrial stocks to buy in 2026. On April 15, TD Cowen reiterated its Buy rating on Axon Enterprise, Inc. (NASDAQ:AXON) and set a $825 price target. The positive stance comes amid expectations that the company is poised to deliver strong revenue growth, topping the 30% estimate.
The research firm is optimistic about the company’s growth metrics and believes the current guidance is conservative. The optimism stems from City Council checks showing strong adoption of the company’s new products. According to the research firm, there is significant uptake of AI, ALPR, Drones, and Fusus.
While Axon Enterprises has delivered 33% revenue growth over the past 12 months, TD Cowen sees the company as the best idea in the sector. That’s in part because of the highly durable end market, high-growth profile, and AI product growth.
RBC Capital analyst David Paige shares similar sentiments, reiterating an outperform rating on Axon Enterprises. According to the analyst, the company is well-positioned to achieve $6 billion in revenue and 28% EBITDA margins by fiscal 2028.
Axon Enterprise, Inc. (NASDAQ:AXON) develops technology and weapons for law enforcement, military, and commercial security, aiming to reduce gun-related deaths through non-lethal solutions. Their ecosystem includes TASER energy weapons, body-worn cameras drones, and the Evidence.com cloud platform.
While we acknowledge the potential of AXON 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 AXON and that has 100x upside potential, check out our report about the cheapest AI stock.
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