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 26.8% return over the past six months has topped the S&P 500 by 18.2 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. Keeping that in mind, here are three resilient industrials stocks at the top of our wish list.
Woodward (WWD)
Market Cap: $23.42 billion
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Is WWD a Top Pick?
- Average organic revenue growth of 11.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Earnings per share grew by 29.4% annually over the last two years, massively outpacing its peers
Woodward is trading at $392.80 per share, or 43.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
VSE Corporation (VSEC)
Market Cap: $5.73 billion
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Should VSEC Be on Your Watchlist?
- Annual revenue growth of 18% over the last two years was superb and indicates its market share increased during this cycle
- Notable projected revenue growth of 18.2% for the next 12 months hints at market share gains
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
VSE Corporation’s stock price of $204.98 implies a valuation ratio of 48.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
CACI (CACI)
Market Cap: $14.07 billion
Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Are We Fans of CACI?
- Sales pipeline is in good shape as its backlog averaged 11.5% growth over the past two years
- Forecasted revenue growth of 10.2% for the next 12 months indicates its momentum over the last two years is sustainable
- Share buybacks catapulted its annual earnings per share growth to 22.2%, which outperformed its revenue gains over the last two years
At $643.64 per share, CACI trades at 20.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
