In this article, we will take a detailed look at the Top 10 Industrial Stocks to Buy Amid Easing Tariff Uncertainties.
Industrial stocks are emerging as a soft spot in the equity markets amid the unending tariff and trade war between the US and other nations. While the Industrial sector offers high exposure to the ups and downs of economic cycles, the stocks have remained resilient amid strong demand for industrial products.
The sector has outperformed the overall market, with a year-to-date gain of 15%, surpassing the high-flying tech sector, which is up by about 13%. Likewise, analysts at FactSet have put the industrial sector at the very top for revenue growth through 2027 and second only to the energy sector in EPS growth.
According to CNBC, industrial stocks are expected to keep performing well as the U.S. economy stays strong, even with the ongoing trade and tariff challenges. The outperformance should continue on the Trump administration’s trade policies boosting US-based manufacturing.
“The BofA Industrial Momentum Indicator recovery from the tariff lows continues, helping regain some of the lost ground and bringing the Indicator back near post-election levels. The easing of tariffs helped remove pressure on the key inputs,” wrote analyst Michael Feniger.
The top industrial stocks to buy amid easing tariff uncertainties are mostly of companies well-positioned to grow regardless of the economic backdrop. That’s because they are working on products that are in high demand, irrespective of the prevailing economic cycle.
Our Methodology
To compile the list of the Best Industrial Stocks to Buy Right Now, we scanned the Finviz stock screener, focusing on stocks that outperformed the overall market. We concentrated on industrial stocks with significant year-to-date gains of more than 50% (as of August 13) and that were popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on hedge fund holdings as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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. Symbotic Inc. (NASDAQ:SYM)
Year-to-Date Return: 109.35%
Number of Hedge Fund Holders: 18
Symbotic Inc. (NASDAQ:SYM) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 6, the company confirmed it is working on game-changing innovations poised to unlock new opportunities across the supply chain. The remarks came as the company delivered mixed third-quarter fiscal 2025 results, with revenue increasing 26% year-over-year to $592 million.
However, the company posted a wider-than-expected net loss of $32 million, compared to a net loss of $27 million in the same quarter last year. Adjusted EBITDA increased to $45 million compared to $3 million for the same quarter the previous year.
For the fourth quarter, Symbotic is projecting revenue of between $590 million and $610 million and an adjusted EBITDA of between $45 million and $49 million. Symbotic has already unveiled an innovative next-generation storage technology designed to enhance warehouse automation.
Symbotic Inc. (NASDAQ:SYM) is an industrial company specializing in automation technologies that aim to reinvent the supply chain for large retail, wholesale, and food & beverage companies, utilizing AI-powered robotic and software platforms. It focuses on transforming warehouse operations through high-density storage, machine learning, and autonomous robots to improve speed, agility, accuracy, and efficiency in moving goods.
9. LATAM Airlines Group S.A. (NYSE:LTM)
Year-to-Date Return: 58.32%
Number of Hedge Fund Holders: 19
LATAM Airlines Group SA (NYSE:LTM) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 11, the company renewed its strategic alliance with Banco Santander Chile (NYSE:BSAC) for an additional five years.
The alliance, which spans three decades, has already given rise to the most recognized loyalty program in the Chilean market. The program offers customers travel benefits and access to the LATAM Pass program. Through the program, more than 2 million airline tickets are redeemed annually via bank products.
Banco Santander Chile has described its partnership with LATAM Airlines as a cornerstone of its daily relationship with customers. LATM Group CEO Robert Alvo anticipates that the alliance will continue to create value for customers.
LATAM Airlines Group SA (NYSE:LTM) is an industrial company that provides passenger and cargo air transportation services in Latin America. The company is known for its extensive network, modern fleet, and commitment to sustainability.
8. Elbit Systems Ltd. (NASDAQ:ESLT)
Year-to-Date Return: 66.62%
Number of Hedge Fund Holders: 20
Elbit Systems Ltd. (NASDAQ:ESLT) is one of the top industrial stocks to buy amid easing tariff uncertainties. On July 28, the company confirmed it has received a $260 million contract from Airbus Defense and Space.
The $260 million contract is for the supply of J-MUSIC Directed Infrared Counter Measures self-protection systems for the German Air Force A400M transport aircraft fleet. The contract is to be implemented over a period of six years.
Elbit Systems is tasked with the J-MUSIC DIRCM system to defend aircraft from infrared-guided missile threats. The system utilizes laser technology and imaging systems to detect, track, and disrupt incoming missile threats in real-time, eliminating the need for human intervention.
“This contract further strengthens Elbit Systems’ position as a leading global provider of DIRCM solutions,” said Bezhalel Machlis, President and CEO of Elbit Systems. “We are proud to support Germany in enhancing the protection of their strategic air assets.”
Elbit Systems Ltd. (NASDAQ:ESLT) is an industrial company that focuses on defense, homeland security, and commercial aviation. It develops, manufactures, and integrates a wide range of advanced solutions across multiple domains, including land, air, sea, and cyberspace.
7. Ryanair Holdings plc (NASDAQ:RYAAY)
Year-to-Date Return: 52.62%
Number of Hedge Fund Holders: 22
Ryanair Holdings plc (NASDAQ:RYAAY) is one of the top industrial stocks to buy amid easing tariff uncertainties. On July 22, Bernstein SocGen Group reiterated an ‘Outperform’ rating on the stock and raised the price target to €28 from €27. The positive stance follows the stock’s remarkable strength year to date.
The Irish airline continues to deliver solid results by benefiting from fare growth. Fares have increased compared to both 2023 and 2024, attributed to high demand for revenge travel. The high travel demand has resulted in a 9.24% increase in revenue and a 28.86% improvement in the gross profit margin. In June, the airline carried 19.9 million passengers, marking 3% year-over-year increase, affirming the strong demand.
In addition, Ryanair has been effective in cost control, with unit costs excluding fuel increasing by just 1.6% amid robust revenue growth. While Bernstein expects non-fuel costs to increase by between 3% and 4% for the year, the lower fuel costs are expected to help offset this increase. Therefore, total cost growth is likely to be below management guidance.
Ryanair Holdings plc (NASDAQ:RYAAY) is an Irish airline holding company that provides low-fare, short-haul passenger airline services to destinations with a network connecting over 240 destinations in more than 40 countries. In addition to its core flight operations, the company also offers various ancillary services, including car hire, travel insurance, and accommodation, through its website and mobile app.
6. AeroVironment, Inc. (NASDAQ:AVAV)
Year-to-Date Return: 60.11%
Number of Hedge Fund Holders: 23
AeroVironment, Inc. (NASDAQ:AVAV) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 11, Canaccord Genuity reiterated a ‘Buy’ rating on the stock with a $305 price target.
The research firm’s positive stance reflects growing confidence in the company’s growth prospects, driven by increasing demand for drone technology. The company has carved a niche in providing unmanned aerial vehicles and tactical missile systems for both defense and commercial applications.
Consequently, AeroVironment continues to attract orders from military and civilian sectors. It remains well-positioned to capitalize on the US Pentagon’s push to ramp up drone production and deployment. The company has also inked a strategic partnership with SNC for the development of integrated air and missile defense capabilities to protect critical infrastructure from advanced aerial threats.
AeroVironment, Inc. (NASDAQ:AVAV) is an industrial company that develops and deploys autonomous systems, precision strike systems, and counter-UAS technologies for defense and government customers. Its solutions are used for intelligence, surveillance, and reconnaissance.
5. Joby Aviation, Inc. (NYSE:JOBY)
Year-to-Date Return: 122.62%
Number of Hedge Fund Holders: 23
Joby Aviation, Inc. (NYSE:JOBY) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 7, analysts at Needham raised their price target for the stock to $22 from $10, while reiterating a ‘Buy’ rating.
The research firm more than doubled its price target, impressed by positive headlines and remarkable returns over the past year. The company has been the subject of positive news, as piloted flight demonstrations helped counter concerns about the vertical takeoff and landing eVTOL aircraft sector.
According to Needham, Joby Aviation is on track for potential Federal Aviation Administration certification amid heightened momentum in aircraft production. The firm’s growing technical credibility continues to strengthen the company’s sentiments and prospects in the industry.
Joby Aviation, Inc. (NYSE:JOBY) is an industrial company that develops and operates an all-electric, vertical takeoff and landing (eVTOL) air taxi service. It is building quiet, emission-free aircraft to connect people in urban areas, aiming to provide a faster, more convenient, and more sustainable way to travel.
4. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Year-to-Date Return: 74%
Number of Hedge Fund Holders: 31
Rocket Lab USA, Inc. (NASDAQ:RKLB) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 12, the company strengthened its national security position with the acquisition of Geost LLC, a leading provider of electro-optical and infrared (EO/IR) sensing systems for critical space missions.
Rocket Lab acquired Geost LLC for $275 million from ATL Partners. The deal comprises $125 million in cash and 3,057,588 shares of Rocket Lab common stock. The company will also pay $50 million tied to future revenue targets.
With the deal closed, Rocket Lab strengthens its role as a key contractor for advanced U.S. defense projects like Golden Dome for America and the Space Development Agency’s Proliferated Warfighter Space Architecture, now offering Optical Systems as part of its mission-ready spacecraft solutions. In addition, Geost technologies support missile warning, tracking tactical intelligence, and earth observation. Rocket Lab stands to be a key provider of spacecraft for national security programs.
“Being able to quickly build and deploy entire satellite systems is the cornerstone of future U.S. defense strategy,” said Rocket Lab founder and CEO Peter Beck in the press release. “This acquisition strengthens our role in building the resilient, responsive space architecture envisioned under Golden Dome.”
Rocket Lab USA, Inc. (NASDAQ:RKLB) is an industrial company that specializes in providing solutions for the aerospace sector. It designs, manufactures, and launches rockets and spacecraft, as well as providing on-orbit operations. It strives to make space more accessible by offering a range of services from launch to satellite operations.
3. Comfort Systems USA, Inc. (NYSE:FIX)
Year-to-Date Return: 67.70%
Number of Hedge Fund Holders: 48
Comfort Systems USA, Inc. (NYSE:FIX) is one of the top industrial stocks to buy amid easing tariff uncertainties. On July 28, Stifel reiterated a ‘Buy’ rating on the stock and hiked the price target to $746 from $581. The price hike comes as the stock shows remarkable momentum, with a gain of over 120% in the past year.
The positive stance and price hikes also follow the company’s delivery of solid second-quarter results, with revenue increasing 20% year over year. The company experienced robust growth, benefiting from 18.5% organic growth and 1.5% from acquisitions. Comfort Systems also benefited from technology end markets, especially in data centers, which drove significant development with a 66% year-over-year increase.
Comfort Systems USA is also expanding its modular capacity, which currently stands at 2.7 million square feet. Its total capacity is poised to reach 3 million square feet early next year. Amid its expansion spree, the company has raised its revenue guidance, projecting mid-teens growth, up from the previous high single-digit growth.
Comfort Systems USA, Inc. (NYSE:FIX) is an industrial company that provides mechanical, electrical, and plumbing (MEP) systems for commercial and industrial buildings. Its expertise spans various sectors, including commercial, industrial, and institutional buildings, as well as modular construction.
2. BWX Technologies, Inc. (NYSE:BWXT)
Year-to-Date Return: 61.02%
Number of Hedge Fund Holders: 52
BWX Technologies, Inc. (NYSE:BWXT) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 5, Truist Securities reiterated a ‘Hold’ rating on the stock and raised the price target to $145 from $114.
The price target hike comes on the heels of the company delivering solid second-quarter results, with earnings coming in at $1.02 a share, surpassing the expected $0.79. Revenue also topped consensus estimates of $708.55 million, coming in at $764 million.
Truist Securities is also buoyed by BWX Technologies raising its full-year outlook, signaling strong underlying growth. The company’s Commercial Operations segment is expected to deliver improved margins in the second half of the year, driven by a potent product mix.
In addition, Truist Securities remains optimistic about BWX Technologies’ business, which it believes is performing exceptionally well due to strong execution and demand across all markets. The research firm expects growth in the government operations segment, along with the potential of Small Modular Reactors in Commercial operations, to bolster the stock’s sentiments.
BWX Technologies, Inc. (NYSE:BWXT) is an industrial company that provides nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine, and space exploration. It specializes in nuclear technology, offering a wide range of products and services, including nuclear components, fuel, and site management.
1. Howmet Aerospace Inc. (NYSE:HWM)
Year-to-Date Return: 63.28%
Number of Hedge Fund Holders: 56
Howmet Aerospace Inc. (NYSE:HWM) is one of the top industrial stocks to buy amid easing tariff uncertainties. On August 4, Bernstein raised the stock’s price target to $217 from $174 while reiterating an ‘Outperform’ rating.
The price target hike follows the aerospace company’s delivery of better-than-expected second-quarter results. Earnings per share came in at $0.91, beating consensus estimates of $0.87 a share. Revenue in the quarter totaled $2.05 billion against $2.01 billion expected.
Impressed by the strong momentum in the second quarter, Bernstein raised its 2025 EPS estimate of the stock from $3.64 to $3.67. The rise comes amid growing expectations of growth in the Industrial gas turbines sector and strong margins across all industries.
Howmet Aerospace Inc. (NYSE:HWM) is a global manufacturer specializing in engineered metal products for the aerospace and transportation industries. It produces a wide range of components and systems, including those for aircraft engines and airframes, as well as forged aluminum wheels for commercial vehicles.
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