Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles. Luckily, the tide is turning in their favor as the industry’s 21.7% return over the past six months has topped the S&P 500 by 6.1 percentage points.
Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. With that said, here are three industrials stocks we’re swiping left on.
WillScot Mobile Mini (WSC)
Market Cap: $4.11 billion
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Does WSC Fall Short?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Earnings per share have contracted by 10.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- 6.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
WillScot Mobile Mini is trading at $22.50 per share, or 13x forward P/E. Check out our free in-depth research report to learn more about why WSC doesn’t pass our bar.
Rockwell Automation (ROK)
Market Cap: $39.11 billion
One of the first companies to address industrial automation, Rockwell Automation (NYSE:ROK) sells products that help customers extract more efficiency from their machinery.
Why Are We Out on ROK?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Rockwell Automation’s stock price of $346.56 implies a valuation ratio of 30.6x forward P/E. If you’re considering ROK for your portfolio, see our FREE research report to learn more.
Trimble (TRMB)
Market Cap: $19.7 billion
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Why Do We Steer Clear of TRMB?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 13.7 percentage points
At $83.96 per share, Trimble trades at 26.7x forward P/E. Dive into our free research report to see why there are better opportunities than TRMB.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.