Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and the industry is currently lagging as its six-month return of 5.7% has trailed the S&P 500’s 9% gain.

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. With that said, here are two industrials stocks boasting durable advantages and one we’re swiping left on.

One Industrials Stock to Sell:

Janus (JBI)

Market Cap: $1.15 billion

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.

Why Are We Cautious About JBI?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Forecasted revenue decline of 18% for the upcoming 12 months implies demand will fall off a cliff
3. Earnings per share fell by 4.4% annually over the last four years while its revenue grew, partly because it diluted shareholders

Janus is trading at $8.37 per share, or 4.6x forward EV-to-EBITDA. If you’re considering JBI for your portfolio, see our FREE research report to learn more.

Two Industrials Stocks to Buy:

Blue Bird (BLBD)

Market Cap: $1.15 billion

With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.

Why Is BLBD a Good Business?

1. Operating margin expanded by 7.6 percentage points over the last five years as it scaled and became more efficient
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 113% over the last two years outstripped its revenue performance
3. Returns on capital are climbing as management makes more lucrative bets

At $36.20 per share, Blue Bird trades at 8.8x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Graham Corporation (GHM)

Market Cap: $410.4 million

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Why Is GHM a Top Pick?

1. Impressive 17% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 298% annually
3. Free cash flow margin grew by 5.6 percentage points over the last five years, giving the company more chips to play with

Graham Corporation’s stock price of $37.51 implies a valuation ratio of 31.5x forward price-to-earnings. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.

Get started by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.