UBS says these are the top 11 stocks in the booming industrial sector-amtomessage

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2025-09-19

UBS says these are the top 11 stocks in the booming industrial sector

FILE - In this Feb. 10, 2011 file photo, American flags fly in front of the New York Stock Exchange, in New York. U.S. stocks opened higher Monday, Aug. 10, 2015, as investors assessed the latest corporate deal news. Precision Castparts led industrial stocks higher after Warren Buffett's Berkshire Hathaway agreed to buy the maker of aircraft components for $32 billion. (AP Photo/Mark Lennihan, File) — AP Photo/Mark Lennihan, File

Industrial stocks are crushing it in 2025, with the sector up 15% year-to-date.
UBS analysts highlighted 11 buy-rated names for investors to put on their radars.
The bank said the companies represented the “most compelling” investment ideas in the sector.

An overlooked part of the market is having a fantastic year—and there are a handful of stocks in the sector investors should be looking at, according to a recent UBS client note.

Analysts at the bank highlighted 11 industrials stocks that were the “most compelling Buy-rated investment” ideas in the sector. It said it included stocks where the bank had a “differentiated view” or “interesting or proprietary data” that supported its buy rating.

It’s already been a great year for investors in that area of the market. Industrial stocks in the S&P 500 are up 15.2% year-to-date, outpacing the benchmark index’s 12% rise.

Here are the 11 companies UBS thinks investors should be looking at:

Woodward (WWD)

Ticker: WWD

Year-to-date performance: +42%

Analyst view: “We see margins expanding, FCF doubling in coming years, and continued industrial upside, resulting in our FY26 Revenue/EBITDA/FCF estimates 3/6/11% above consensus. With >30% margin incrementals and a proven track record of content wins, WWD is well positioned.”

Alaska Air Group (ALK)

Alaska Air Group stock price — Business Insider

Ticker: ALK

Year-to-date performance: -9%

Analyst view: “An in-depth analysis into ALK’s key drivers of premium seat expansion to 29% from 27%, loyalty growth, and global expansion, among others, gives us more confidence in its long-term earnings power. We also think the near-term is de-risked as corporate demand has accelerated recently and competitive pressure are easing in SFO and other ALK markets.”

CSX Corporation (CSX)

Ticker: CSX

Year-to-date performance: +1.5%

Analyst view: “We see multiple drivers of EPS growth for CSX in 2026 / 2026 and believe downside risk is limited considering a step down in investor expectations regarding potential rail M&A involving CSX and P/E valuation of 17x on 2026 consensus EPS relative to a 5 year average of 18x. Completion of two large, disruptive construction projects removes ~$100 mm in operating costs in 2026 while renewing network resilience and adding capacity for growth.”

TE Connectivity PLC (TEL)

TE Connectivity stock price — Business Insider

Ticker: TEL

Year-to-date performance: +49%

Analyst view: “We see 1) strong AI growth exposure, exiting the year at >$1bn run-rate, 2) seemingly bottom calling other end-markets in Industrial Solutions that have lagged, and 3) broadening out of growth at the company.”