The industrial sector has gotten a lot of attention in the past few years from the government due to the U.S. focusing on onshoring manufacturing, and it is likely that it will get even more attention as tariffs start to increase. Moreover, industrial companies are rushing to integrate AI and automation, which could increase margins by a lot in the long run.
As such, it’s a good idea to look into industrial stocks that benefit from these trends. This includes those that have been performing very well so far this year. Companies that adapt to new techs and capitalize from the Trump administration’s policies could deliver the most growth in the coming years.
An industrial park lit up at night, emphasizing the breadth of the company’s industrial products.
Methodology
For this article, I screened the top-performing industrial stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. Safe & Green Holdings (NASDAQ:SGBX)
Number of Hedge Fund Holders In Q3 2024: 1
Safe & Green Holdings (NASDAQ:SGBX) is a pretty small company that repurposes cargo shipping containers to build pre-fab structures., It has surged significantly so far this year due to it receiving a $100 million equity line after a funding agreement with Alumni Capital LP.
This will allow the company to raise capital incrementally while minimizing shareholder dilution.
The company also signed a letter of intent to acquire New Asia Holdings and its subsidiaries.
It reported $1.75 million in Q3 2024 revenue. This is down 55.8% year-over-year. Net loss came in at $3.72 million, which is $2.68 million more year-over-year. However, operating expenses were cut by $4 million year-to-date, and it raised $2.4 million in cash through warrant inducement transactions.
SGBX stock is up 27.12% year-to-date.
14. Concrete Pumping Holdings (NASDAQ:BBCP)
Number of Hedge Fund Holders In Q3 2024: 13
Concrete Pumping Holdings (NASDAQ:BBCP) provides concrete plumbing and waste management services in the U.S. and in the U.K.
The stock is up significantly so far in 2025 due to it announcing a one-time $1 per share special dividend that totaled $53 million. This is payable by February 3, 2025, and it depends on closing a $425 million debt refinancing deal (7.5% senior notes due 2032).
The debt refinancing is also why it has been surging. The company upsized its debt offering to $425 million to redeem higher-interest 2026 notes. This extends maturities to 2032. And combined with an expanded $350 million credit facility, this strengthens liquidity to $378 million and reduces net debt to $332 million.
The consensus price target of $7.5 implies 11.35% downside.
BBCP stock is up 27.6% year-to-date.
13. FreightCar America (NASDAQ:RAIL)
Number of Hedge Fund Holders In Q3 2024: 8
Freightcar America (NASDAQ:RAIL) has a pretty self-explanatory ticker. It makes railcars and components for containerized freight. It has been surging over the past few years and is up significantly so far in 2025.
The surge so far in 2025 is due to solid Q3 2024 results and a strategic financial restructuring. In January, RAIL got a $115 million term loan to redeem all outstanding preferred shares. This allowed it to slash capital costs by 40% and save $9.2 million annually. It also eliminated high-dividend obligations of $0.875 on its preferred stock.
It also posted 83% year-over-year sales growth in Q3 to $113.3 million. Railcar deliveries were up 91% to 961. Moreover, adjusted EBITDA surged 211% to $10.9 million and it raised its 2024 revenue guidance to $560 million to $600 million. At midpoint, this is 62% year-over-year growth.
The consensus price target of $14.88 implies 21.87% upside.
RAIL stock is up 28% year-to-date.
12. Innovative Solutions and Support Inc (NASDAQ:ISSC)
Number of Hedge Fund Holders In Q3 2024: 6
Innovative Solutions and Support Inc (NASDAQ:ISSC) makes avionics systems for commercial and military aircraft.
The stock is up significantly so far in 2025 as Q4 2024 revenue rose 18.4% to $15.4 million, while full-year 2024 revenue increased 35.6% to $47.2 million. Moreover, net income reached $7 million, up 16%.
Net new orders also hit $95.4 million in Q4 2024. This includes $74.3 million from Honeywell product acquisitions.
The company has an upcoming system called UMS2, which is expected to be released this year. It is integrated with AI and neural networks that can automate cockpit tasks. Plus, it has gotten a lot of contracts with the military. Recent aviation incidents could cause demand to pick up even more.
ISSC stock is up 35.07% year-to-date.
11. RF Industries (NASDAQ:RFIL)
Number of Hedge Fund Holders In Q3 2024: 2
RF Industries (NASDAQ:RFIL) makes telecommunications products. It has segments that make coaxial connectors, adapters, fiber optic cables, and products for 5G systems.
The stock has surged significantly so far in 2025 due to its Q4 2025 earnings signaling a turnaround. Revenue rose 16% year-over-year to $18.5 million. This is the first operating profit of $96,000 in many quarters. In addition, adjusted EBITDA improved to $908,000 vs. a loss of $108,000 in the year-ago quarter.
RF Industries also reduced its debt by 42% and inventory by 21%. The backlog grew to $19.5 million and went up 21% year-over-year. Revenue declined 10% for the whole year, but these positive developments are a signal that RFIL stock is making a turnaround.
The consensus price target of $4.5 implies 13.96% downside.
RFIL stock is up 36.9% year-to-date.
10. Staffing 360 Solutions (NASDAQ:STAF)
Number of Hedge Fund Holders In Q3 2024: 2
Staffing 360 Solutions (NASDAQ:STAF) is a staffing company. It acquires and integrates other staffing agencies.
The stock has been gaining significantly so far this year due to it announcing it will be acquired by Atlantic International. The deal converts Staffing 360 to a subsidiary of the company. Atlantic will own 90% of the merged entity and Staffing 360 shareholders will retain 10%. Moreover, there is the potential for debt reduction.
Staffing 360 Solutions also settled $5.6 million in loans from Jackson Investment Group by converting the debt into preferred stock.
The consensus price target of $6 implies 88.68% upside.
STAF stock is up 38.26% year-to-date.
9. Redwire (NYSE:RDW)
Number of Hedge Fund Holders In Q3 2024: 7
Redwire (NYSE:RDW) is an aerospace company that develops technologies and satellite components.
The stock has risen sharply so far in 2025 due to its acquisition of Edge Autonomy in a $925 million deal. This is a drone manufacturer, and Redwire plans to pay for the acquisition with $150 million in cash and $775 million in Redwire stock.
Analysts expect this acquisition will immediately boost Redwire’s revenue and EBITDA. They now project combined 2025 revenue of $535 million to $605 million, whereas EBITDA is expected at $70 million to $105 million. This is up massively from Redwire’s standalone 2024 forecast of $310 million in revenue.
Moreover, political catalysts have been in play too. Trump placed a lot of emphasis on Mars exploration in his inaugural address. Redwire could be a major beneficiary of that.
The consensus price target of $16.5 implies 31.02% downside risk.
RDW stock is up 40.38% year-to-date.
8. Power Solutions International (NASDAQ:PSIX)
Number of Hedge Fund Holders In Q3 2024: N/A
Power Solutions International (NASDAQ:PSIX) is a company that makes alternative fuel engines and power systems for the industrial sector. It also servers data centers.
The stock has surged significantly so far in 2025 due to it moving from the OTC pink market to NASDAQ under the same ticker late last year. Moreover, it reported solid Q3 2024 results. Net income rose 122% year-over-year to $17.3 million and revenue rose 9% to $125.8 million. Gross margin also expanded to 28.9%.
Data center demand has been surging here due to hyperscalers expanding their infrastructure. As such, PSIX’s power systems now account for about 40% of revenue.
The consensus price target of $37 implies 12.55% downside.
PSIX stock is up 44.75% year-to-date.
7. SKYX Platforms (NASDAQ:SKYX)
Number of Hedge Fund Holders In Q3 2024: 3
SKYX Platforms (NASDAQ:SKYX) makes techs to make electrical installations easier. It also has many other electrical products for emergencies and WiFi devices.
The stock is up significantly so far in 2025 due to it beginning to supply products to 140 commercial units in Florida in January as part of a larger 1,000-unit project with a developer called Jeremiah Baron Companies. The deal could generate $500 to $2,000 per unit in revenue and could scale further.
Moreover, financials have shown a lot of momentum. Q3 2024 revenue hit $22.2 million and grew 2.6% year-over-year. Gross margin also improved slightly, and the company managed to reduce its operating cash burn by 39% to $2.6 million in Q3. it also raised $11 million in equity in October 2024.
It reported $13 million in cash in Q3 2024, though net loss widened to $8.62 million in the same quarter, up 20% year-over-year.
The consensus price target of $3.5 implies 112.12% upside.
SKYX stock is up 47.32% year-to-date.
6. AMMO Inc (NASDAQ:POWW)
Number of Hedge Fund Holders In Q3 2024: 6
AMMO Inc (NASDAQ:POWW) is the largest firearms e-commerce platform. It makes ammo and components while selling firearms through its e-commerce platform.
The stock has surged significantly so far in 2025 due to its announcement of a $75 million sale of ammunition manufacturing assets to Olin Corporation in January. This includes a 185,000-square-foot Wisconsin facility.
This will provide a $75 million cash infusion, which is a huge amount considering its market cap is at $208 million. It also eliminates $40 million in production costs through synergies and allows the company to fully pivot to its e-commerce platform with higher margins.
AMMO also resolved a Nasdaq deficiency issue and avoided delisting risks.
The consensus price target of $1.5 implies 14.29% downside risk.
POWW stock is up 49.57% year-to-date.
5. SuperCom (NASDAQ:SPCB)
Number of Hedge Fund Holders In Q3 2024: 1
SuperCom (NASDAQ:SPCB) is a cybersecurity company.
It has surged significantly so far in 2025 as it has been expanding in more U.S. states and in other countries. It has entered six new states since mid-2024 and secured 20+ contracts. It has won over 15 national projects in Europe.
The company also issued 100,000 shares at $43.74 to pay down $4.37 million in debt. This extends maturity to 2028 and eliminates monthly interest payments.
2024 revenue is estimated at $28.36 million, with a net income of $5.11 million. It also has a cash position of $6.23 million as of Q3 2024.
The consensus price target of 18 implies 55.98% upside.
SPCB stock is up 50.26% year-to-date.
4. Planet Labs (NYSE:PL)
Number of Hedge Fund Holders In Q3 2024: 8
Planet Labs (NYSE:PL) operates Earth-imaging satellites that capture daily global data. The satellites are high-resolution and can be used for agriculture, defense, and many more purposes.
The stock has surged significantly so far in 2025 due to a deal in January that allowed Planet to secure its largest contract to date. It is a multi-year agreement to build and operate pelican satellites for an Asia-Pacific partner. This includes data cess priority for the partner and expanded capacity for Planet’s government/commercial clients. Analysts think this deal could drive a lot of long-term cash flow in the coming years. It also is collaborating with Nvidia.
In addition, Q3 FY2025 revenue climbed 11% year-over-year to $61.3 million. GAAP gross margins are up 47% year-over-year to 61%. Net losses also narrowed to $20.1 million and adjusted EBITDA loss improved to $200,000. In comparison, the net loss was $38 million and the EBITDA loss was $12 million the year before.
The cash position is at $242 million with no debt.
The consensus price target of $5.23 implies 14.21% downside risk.
PL stock is up 53.65% year-to-date.
3. Lightbridge (NASDAQ:LTBR)
Number of Hedge Fund Holders In Q3 2024: 2
Lightbridge (NASDAQ:LTBR) is a nuclear fuel tech company and its flagship product uses metallic fuel rods designed to operate at lower temperatures, extend reactor lifespans, and reduce nuclear waste by up to 30%.
The main reason this stock is up so much so far in 2025 is obviously AI, as it is expected to drive energy consumption, though DeepSeek has cooled that sentiment significantly. Still, Lightbridge has had significant gains. It signed a non-binding MOU with Oklo, which is another reactor company. The partnership will reduce costs for both companies and trigger a surge in LTBR shares.
The company is still pre-revenue. It reported $26.6 million in cash in Q3 2024. However, the net loss came in at $2.7 million, and the high cash burn of about $7.85 million year-to-date could lead to dilution down the road.
LTBR stock is up 77.45% year-to-date.
2. Innovate (NYSE:VATE)
Number of Hedge Fund Holders In Q3 2024: 6
Innovate (NYSE:VATE) is involved in infrastructure and industrial construction via DBM Global, though it also has other segments, like Life Sciences (healthcare) and Spectrum, which is for broadcasting.
The stock has surged significantly so far in 2025 as it reported a 294% growth in Glacial Skin system sales in 2024. Moreover, the approved MediBeacon Transdermal GFR System. It is a non-invasive kidney function test that addresses a global market of 800 million chronic kidney disease patients.
Q3 2024 revenue fell 35.5% to $242.2 million, but Life Sciences revenue jumped 416% year-over-year. In addition, net loss narrowed to $15.3 million vs. $28 million in 2023.
VATE stock is up 132.4% year-to-date.
1. WANG & LEE Group (NASDAQ:WLGS)
Number of Hedge Fund Holders In Q3 2024: N/A
WANG & LEE Group (NASDAQ:WLGS) is a construction contractor that specializes in electrical and mechanical systems.
It has surged significantly so far in 2025 due to explosive sales growth. It is also attributable to a recovery from an earlier decline last year. Revenue is up 66.9% to $7.27 million TTM. Gross profit margins improved to 29.3%.
There is also a lot of speculative trading activity due to the stock’s low float and high retail investor interest.
The company is not profitable yet, but losses have narrowed 55.42% to -$362,000 in the June 2024 quarter. In addition, cash was reported at $4.6 million in 2023.
It is a very small company, so it is likely that the stock will swing back and forth further.
WLGS stock is up 297.25% year-to-date.
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Disclosure: None. This article was originally published at Insider Monkey.
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