Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 5% has fallen short of the S&P 500’s 13.3% rise.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. On that note, here is one industrials stock boasting a durable advantage and two that may face trouble.
Two Industrials Stocks to Sell:
Concrete Pumping (BBCP)
Market Cap: $525.6 million
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Do We Think Twice About BBCP?
- Sales tumbled by 1.4% annually over the last two years, showing market trends are working against it during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $10.45 per share, Concrete Pumping trades at 33.9x forward P/E. To fully understand why you should be careful with BBCP, check out our full research report (it’s free).
Republic Services (RSG)
Market Cap: $68.21 billion
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Is RSG Not Exciting?
- The company has faced growth challenges as its 4.2% annual revenue increases over the last two years fell short of other industrials companies
- Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.8%
Republic Services’s stock price of $223.56 implies a valuation ratio of 29x forward P/E. Read our free research report to see why you should think twice about including RSG in your portfolio.
One Industrials Stock to Buy:
Gorman-Rupp (GRC)
Market Cap: $1.97 billion
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Do We Love GRC?
- Annual revenue growth of 14.7% over the last five years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 28% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 12.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Gorman-Rupp is trading at $74.42 per share, or 24.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
