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 1.2% has trailed the S&P 500’s 8.3% 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. On that note, here is one industrials stock boasting a durable advantage and two that may face trouble.
Two Industrials Stocks to Sell:
Blink Charging (BLNK)
Market Cap: $74.28 million
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Is BLNK Not Exciting?
- Annual sales declines of 18.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Blink Charging is trading at $0.53 per share, or 0.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BLNK.
Ducommun (DCO)
Market Cap: $2.70 billion
California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Why Does DCO Fall Short?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 16% declines over the past two years
- Efficiency has decreased over the last five years as its operating margin fell by 11.2 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $179.02 per share, Ducommun trades at 39.9x forward P/E. Read our free research report to see why you should think twice about including DCO in your portfolio.
One Industrials Stock to Watch:
Teledyne (TDY)
Market Cap: $30.39 billion
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.
Why Do We Like TDY?
- Annual revenue growth of 12.8% over the last five years was superb and indicates its market share increased during this cycle
- Highly efficient business model is illustrated by its impressive 17.9% operating margin, and its profits increased over the last five years as it scaled
- Free cash flow margin jumped by 11.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Teledyne’s stock price of $655.57 implies a valuation ratio of 25.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
