In this article, we will discuss Billionaire Ken Fisher’s 10 Industrial Stock Picks with Huge Upside Potential.
The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions.
Even with possible higher tariffs under Trump’s trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada’s Innovation Minister Francois-Philippe Champagne said,
“Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.”
All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home.
Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, “Investors are ignoring some of these positive developments,” pointing to an overlooked chance in housing-related businesses.
Aerospace is also making a comeback through airlines’ need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies.
In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte’s 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation:
“The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.”
His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges.
With that in mind, let’s delve into Billionaire Ken Fisher’s 10 Industrial Stock Picks with Huge Upside Potential.
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Methodology
To compile this list, we reviewed Ken Fisher’s SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey’s database of Q4 2024.
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).
10. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 93
Upside Potential: 20.00%
Union Pacific Corporation (NYSE:UNP) operates as a freight rail company, having a major role in the industrial supply chain of the U.S. It carries agricultural and energy commodities, chemicals, construction materials, and intermodal containers to many major areas, driving sectors like agriculture, manufacturing, and energy. Although the railroad sector was stagnant for the year prior, the company continued to provide its services, positioning it as a top industrial stock for 2025.
For the first quarter ended March 31, 2025, Union Pacific Corporation (NYSE:UNP) posted $2.70 EPS, just falling short of expected results, as revenue stood at $6 million. However, freight revenue was $5.7 billion, an increase of 1% or 4% when excluding lower fuel surcharges. Whereas volume rose 7% YoY, though business instability and a drop of $100 million in fuel surcharge revenue pressured margins. Moreover, net profits stayed at $1.6 billion, with the operating ratio unchanged at 60.7%.
Union Pacific Corporation (NYSE:UNP) hit a record first-quarter performance despite tight margins. Freight cars moved faster at 215 miles daily, terminals processed cars 6% quicker, and the service score rose six points to 93%. Meanwhile, strong bulk and premium shipping, particularly West Coast intermodal traffic, made up for drops in auto and petroleum shipments.
Management is stuck with its yearly forecast, aiming for EPS growth of 7-12%, while Q2 might have weaker intermodal demand, the company expects prices to stay strong. Looking ahead, Union Pacific Corporation (NYSE:UNP) is confident about meeting its three-year targets despite ups and downs in global trade.
Due to the company’s strong positioning with $1.43 billion worth of shares making up around 0.57% of Fisher’s portfolio, Union Pacific is a top candidate for Ken Fisher’s top 10 industrial stock picks.
9. Veralto Corporation (NYSE:VLTO)
Number of Hedge Fund Holders: 43
Upside Potential: 20.23%
Veralto Corporation (NYSE:VLTO) is a key player in water analytics, treatment, and product ID tech. The company works through two main divisions: Water Quality (WQ) and Product Quality & Innovation (PQI). WQ handles precision tools and chemical treatment for cities and industries, while PQI provides digital management and printing solutions for consumer goods packaging.
In the quarter ended December 31, 2024, Veralto Corporation (NYSE:VLTO) showed sales hitting $1.3 billion, up 4.4% from the previous year. Core sales grew 4.6%, with volume up 3.1% and pricing up 1.5%, while adjusted earnings jumped 9% to $0.95 per share, generating $263 million in free cash flow. The Water Quality division brought in $811 million with core sales climbing 4.9% and margins reaching 25.5%. The company’s PQI division delivered $534 million, up 5.4%, with 24.9% margins.
For all of 2024, Veralto’s sales reached nearly $5.2 billion, with earnings up 11% to $3.54 per share. Veralto Corporation (NYSE:VLTO) generated $820 million in free cash and ended with $1.1 billion in cash on hand. Moreover, the company bought TraceGains for $350 million while putting $15 million into Axine Water Technologies, and selling off its AVT product line. Research and development spending grew to 5% of sales, backing new products like their 7920 UV Laser Marking System.
For 2025, Veralto expects low to mid-single-digit sales growth, earnings between $3.60-$3.70, and cash conversion of 90-100%, and Q1 earnings should hit $0.84-$0.88. Strong demand for water treatment and packaging tech continues to drive the growth of Veralto Corporation (NYSE:VLTO) across regions.
8. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 44
Upside Potential: 21.85%
Dover Corporation (NYSE:DOV) operates in the range of industrial goods spanning vehicle service, clean energy, fuel systems, biopharma, and data cooling. It works through five business segments, focusing on automation, sustainability, and precision engineering.
In Q1 ended March 31, 2025, Dover posted adjusted earnings of $2.05 per share, jumping 19% from last year and beating forecasts. Dover Corporation (NYSE:DOV) hit a record first-quarter adjusted EBITDA margin of 24%, up 240 basis points, while its free cash flow reached $109 million, about 6% of revenue. Moreover, new orders stayed strong with all divisions booking more than they shipped, though some weakness in vehicle service and aerospace offset gains in other areas.
While the company’s Engineered Products faced headwinds, the Pumps & Process Solutions segment grew 7% organically, thanks to strong biopharma parts and data center cooling connector sales. Dover’s Imaging and Identification business saw 4% organic growth, with good momentum in tracking software. Meanwhile, the Clean Energy & Fueling segment benefited from high demand for fueling systems and clean energy products. Its Climate & Sustainability Technologies improved margins through efficiency gains despite falling revenue.
The company slightly lowered its yearly revenue and earnings targets due to Chinese tariff impacts on steel imports, though management expects a solid second quarter, backed by a healthy backlog. It still aims for a yearly free cash flow of 14-16% of revenue and plans to focus spending on automation and targeted acquisitions. Dover Corporation (NYSE:DOV) is fighting tariff pressures through price adjustments and local manufacturing.
Dover stands out among industrial stocks, with strong demand for biopharma, data centers, and clean energy. Ken Fisher holds $302.1 million in Dover Corporation (NYSE:DOV) shares, making up 0.12% of his portfolio.
7. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 41
Upside Potential: 22.01%
Emerson Electric Co. (NYSE:EMR) develops automation technology and software for industries such as process control, discrete manufacturing, instrumentation, and asset management. Working through seven specialized divisions, the company tackles global needs for energy efficiency and digital transformation.
For Q1 2025 ended December 31, 2024, Emerson beat earnings forecasts with $1.38 per share, above the $1.28 analysts expected. Emerson Electric Co. (NYSE:EMR) achieved record gross margins of 53.5% and adjusted segment EBITDA margins of 28%, up 340 basis points from last year. The company’s free cash flow nearly doubled to $694 million thanks to cost-cutting and better margins. Although its discrete business fell 4%, while process and hybrid segments grew 5%, and software and control rose 4%. Emerson Electric also bought back $1 billion in shares during the quarter.
Moreover, Emerson saw strong results in the US and the Middle East, but China remained weak, especially in manufacturing and chemicals. Emerson Electric Co. (NYSE:EMR) built up an $11.5 billion project pipeline and continues its focus on LNG, power, and semiconductor markets as key growth areas. It expects over $1 billion in future LNG orders and added $300 million in semiconductor opportunities. The company’s growth plans include acquiring AspenTech and opening a new headquarters in St. Louis.
Despite some regional challenges, Emerson Electric Co. (NYSE:EMR) remains a solid industrial tech investment due to strong cash flow and growing digital offerings. Ken Fisher owns about $252.3 million in Emerson shares, making up 0.1% of his fund’s holdings.
The company aims for high-70% operating leverage (up from mid-40% last year) and plans to return $3.2 billion to shareholders through dividends and buybacks.
6. IDEX Corporation (NYSE:IEX)
Number of Hedge Fund Holders: 34
Upside Potential: 27.97%
IDEX Corporation (NYSE:IEX) delivers key industrial solutions in fluid management, life sciences, and safety tech. It works through three main segments: Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products. The company serves vital markets like life sciences, semiconductors, chemical processing, firefighting, and aerospace with pumps, valves, and specialty systems. IDEX ranks among the top industrial tech stocks for investors, and Ken Fisher currently owns about $2,891,859 in company shares.
In the Q4 ended December 31, 2024, IDEX Corporation (NYSE:IEX) showed $863 million in revenue, up 9% from last year, with organic sales growing 3%. Meanwhile, orders jumped 8%, helping boost quarterly adjusted EBITDA margin by 60 basis points to 26.4%. Yet 2024’s full-year revenue stayed flat at $3.3 billion, with organic sales dropping 2%, and adjusted earnings per share fell 4% to $7.89. The company generated strong free cash flow of $603 million, converting 101% of adjusted net income.
Furthermore, the Health & Science Technologies segment led Q4 order activity, shipping $40 million in project work, while the company’s Fire & Safety/Diversified Products hit record quarterly sales. Management highlighted integration across five collaborative groups, making up over half of the total revenue. Despite tough market conditions, strong blanket orders from Q4 should boost 2025 volume. The semiconductor market is also expected to improve in the second half of next year.
For 2025, IDEX Corporation (NYSE:IEX) expects 1-3% organic growth with adjusted earnings between $8.10 and $8.45 per share—a 3-7% increase over 2024. The first quarter will likely see a 3-4% organic decline due to tough comparisons with last year. However, management expects a $0.43 earnings boost from platform improvements. The company plans $21-25 million in restructuring costs, with revenue and earnings weighted toward the year’s second half.
IDEX continues focusing on strategic acquisitions, with its recent Mott acquisition doing better than expected. With a solid balance sheet and 2.2x gross leverage ratio, IDEX Corporation (NYSE:IEX) keeps looking for good deals—80% of its recent acquisitions were proprietary deals.
5. Ingersoll Rand Inc. (NYSE:IR)
Number of Hedge Fund Holders: 39
Upside Potential: 31.60%
Ingersoll Rand Inc. (NYSE:IR) supplies essential air, fluid, and energy tech for industrial, medical, and scientific markets across the globe. The company operates through two main segments: Industrial Technologies & Services and Precision & Science Technologies. It provides products including compressors, vacuum products, pumps, and control systems. During 2024, the company saw steady demand, particularly in emerging markets, backed by wide distributor networks and strategic acquisitions. Thus, the company is well-positioned as a top industrial tech stock in a growing market.
In Q4 ended December 31, 2024, Ingersoll Rand’s revenue grew 4% year-over-year while adjusted EBITDA jumped 6% to $532 million. EBITDA margins improved by 50 basis points to 28%, with quarterly adjusted earnings hitting $0.84 per share, bringing full-year earnings to $3.29, up 11% from the previous year. Meanwhile, Q4 orders increased 8%, and free cash flow reached $491 million, a solid 26% margin. The annual revenue of Ingersoll Rand Inc. (NYSE:IR) rose 5%, thanks to strong execution and contributions from acquisitions.
The Industrial Technologies & Services segment faced slight organic revenue weakness in Q4, though compressor and vacuum product orders stayed healthy. This segment achieved a record 30.2% EBITDA margin for the full year. Simultaneously, the Precision & Science Technologies segment showed impressive 24% revenue growth in Q4, with acquisitions driving results despite organic softness. The ILC Dover Life Sciences unit showed an outstanding double-digit revenue growth during this period.
For 2025, Ingersoll Rand Inc. (NYSE:IR) expects adjusted earnings between $3.38 and $3.50 per share—about 5% growth at the midpoint. Revenue should increase by 3-5%, with organic growth of 1-3%, and the company aims to add up to 500 basis points of growth through acquisitions. With over 200 potential targets and seven deals already at the letter-of-intent stage, acquisitions remain key to its strategy. Ken Fisher currently owns about $2.3 million in Ingersoll Rand shares, making up roughly 0.0008% of his investment portfolio.
4. Advanced Drainage Systems, Inc. (NYSE:WMS)
Number of Hedge Fund Holders: 36
Upside Potential: 36.28%
Advanced Drainage Systems, Inc. (NYSE:WMS) creates and produces thermoplastic corrugated pipes and water management products across North America and worldwide. It works across four major segments: Pipe, International, Infiltrator, and Allied Products, serving home builders, commercial construction, farms, and infrastructure projects. Its diverse geographic reach and strong presence in housing and infrastructure markets give the company solid growth potential.
In fiscal Q3 ended December 31, 2024, Advanced Drainage Systems, Inc. (NYSE:WMS) brought in $691 million, up 4% from last year, partly due to the acquisition of Orenco. Adjusted EBITDA hit $191 million, down 6%, while earnings per share were $1.09, just missing targets. Free cash flow reached $374 million year-to-date, lower than the $564 million the year prior. Meanwhile, home construction sales grew 9%, and commercial sales jumped 7%, especially in southern regions.
Advanced Drainage Systems, Inc. (NYSE:WMS) also introduced new EcoStream biofiltration systems and storage chambers. The company boosted its recycling operations in Georgia and kept incorporating Orenco’s wastewater solutions. It is expected that these steps will improve the company’s long-term profit margins.
Although infrastructure sales dropped 6% compared to the previous year, Advanced Drainage Systems, Inc. (NYSE:WMS) maintains its expectation for 2025, hinting at stable prices and lower material costs. As weather conditions get harsher, demand for stormwater systems is increasing. With little competition disruption expected, the company feels good about its future. Ken Fisher owns about $3.7 million in ADS stock, roughly 0.001% of his investment portfolio.
3. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 86
Upside Potential: 37.92%
United Airlines Holdings, Inc. (NASDAQ:UAL) carries passengers and cargo in the U.S., Canada, and across Atlantic, Pacific, and Latin American routes. The company runs a mix of mainline and regional planes, while offering side businesses like maintenance for other airlines, flight training, and rewards programs.
During Q1 ending March 31, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) pulled in $13.2 billion in revenue, an increase of 5.4% from last year. The main drivers for this growth were a 4.9% increase in capacity, and revenue per seat mile growing slightly by 0.5%. The company’s pre-tax income hit $478 million, a 3.6% margin, with adjusted pre-tax income at $391 million, a 3.0% margin. It also made $400 million in net income with earnings of $1.16 per share, or $0.91 adjusted. Furthermore, UAL generated $3.7 billion from operations and $2.3 billion in free cash while buying back $451 million in shares, finishing with $18.3 billion in cash against $27.7 billion in debt.
United Airlines Holdings, Inc. (NASDAQ:UAL) had its best-ever Q1 performance in operations as premium seats jumped 9.2%, business travel grew 7.4%, and Basic Economy rose 7.6%. International flights stayed strong as Atlantic routes saw 4.7% higher revenue per seat, while Pacific routes jumped 8.5%. Additionally, future bookings in premium cabins are up 17%, and a record 85% of passengers checked in online. The airline also got FAA approval for Starlink WiFi, added international destinations, and flew its biggest Q1 schedule by seat miles ever.
Despite economic uncertainty, United expects solid earnings for Q2 and full-year 2025. United Airlines Holdings, Inc. (NASDAQ:UAL) is cutting domestic flights by 4%, starting in Q3, to boost profits. The company’s strategy focuses on premium seats, keeping costs down, and going green, including investing in the carbon capture company Heirloom. This approach should help United Airlines grow steadily in the worldwide airline business.
2. Regal Rexnord Corporation (NYSE:RRX)
Number of Hedge Fund Holders: 34
Upside Potential: 59.55%
Regal Rexnord Corporation (NYSE:RRX) delivers sustainable solutions in power transmission, automation, and motion control across North America, Asia, Europe, and other global markets. Operating through Industrial Powertrain Solutions, Automation, Motion Control, and Power Efficiency Solutions segments, the company provides a broad range of components such as gearboxes, motors, variable speed controls, and automation subsystems. Regal Rexnord Corporation (NYSE:RRX) serves industries including metals and mining, energy, HVAC, aerospace, robotics, and medical equipment, positioning it as one of the industrial stocks with significant upside potential due to its diversified end-market exposure.
For the quarter ended December 31, 2024, Regal Rexnord Corporation (NYSE:RRX) posted adjusted earnings per share of $2.34, up 2.6% year-over-year, despite a 1.4% decline in organic sales. The company achieved a Q4 adjusted EBITDA margin of 21.7% and generated $185 million in adjusted free cash flow. Full-year debt reduction efforts were notable, with $938 million paid down, exceeding management’s targets. Segment-wise, the Automation and Motion Control business saw positive order momentum in food and aerospace markets, while Power Efficiency Solutions benefited from robust residential HVAC growth.
Moreover, Regal Rexnord Corporation (NYSE:RRX) continued advancing strategic initiatives, achieving $101 million in annual synergies and forming a new partnership with Honeywell Aerospace focused on the emerging eVTOL aircraft market. Despite persistent headwinds in general industrial markets and customer pushouts at year-end, daily orders grew by 4.4% in Q4 and remained positive in January 2025, indicating underlying demand stability. Management expects Q1 2025 to be the low point for sales and margins, followed by sequential improvements through the year.
Looking ahead, Regal Rexnord Corporation (NYSE:RRX) is forecasting flat organic sales growth and an adjusted EBITDA margin of 23% for 2025, with adjusted EPS guidance ranging from $9.60 to $10.40. Ken Fisher owns approximately $59.7 million worth of shares in Regal Rexnord Corporation, representing about 0.02% of his total portfolio, reflecting his conviction in the company’s long-term growth strategy.
1. Montrose Environmental Group, Inc. (NYSE:MEG)
Number of Hedge Fund Holders: 17
Upside Potential: 104.36%
Montrose Environmental Group, Inc. (NYSE:MEG) is a diversified environmental services provider operating across the United States, Canada, and internationally. It caters to a wide range of industries, including oil and gas, utilities, government entities, chemicals, aerospace, and renewable energy. It is one of the industrial stocks with strong upside potential, backed by its expanding client base and rising demand for environmental services.
For the year ended December 31, 2024, Montrose Environmental Group, Inc. (NYSE:MEG) reported record revenue of $696.4 million, reflecting an 11.6% year-over-year increase, supported by 8.3% organic growth. Q4 2024 revenue grew 14.1% year-over-year to $189.1 million, while full-year consolidated adjusted EBITDA reached $95.8 million, representing 13.8% of revenue. Diluted adjusted net income per share rose to $0.29 in Q4 from $0.27 a year earlier. The company’s leverage ratio also improved significantly, standing at 2.1x by year-end.
Moreover, Montrose Environmental Group, Inc. (NYSE:MEG) maintained a high 96% revenue retention rate for the third consecutive year, with strong cross-selling initiatives contributing 53% to 2024 revenue. International revenue grew notably to around 20% of total sales. Segment-wise, Measurement and Analysis led performance with robust year-over-year growth and strong margin expansion. In addition, the audit committee’s independent review addressed short-seller allegations, finding no material issues, thereby reinforcing investor confidence.
Looking ahead, Montrose Environmental Group, Inc. (NYSE:MEG) is targeting steady organic growth, stronger operational efficiencies, and expanding its private sector and international client base. Ken Fisher owns approximately $5.2 million worth of shares in Montrose Environmental Group, Inc., representing about 0.002% of his total portfolio, highlighting his belief in the company’s long-term prospects.
Overall, Montrose Environmental Group, Inc. (NYSE:MEG) ranks first on our list of Billionaire Ken Fisher’s Industrial Stock Picks with Huge Upside Potential. While we acknowledge the potential of MEG, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MEG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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