The industrials sector has been in a period of contraction for most of 2023 and 2024, with sharply mixed performance among different companies during that time. Some firms have thrived, like power management giant Eaton Corp. plc (NYSE: ETN), with its nearly 50% returns in the year leading to December 13, 2024. On the other hand, even some of the sector's stalwarts have seen share prices decline during this period as well. The Boeing Co. (NYSE: BA) is an example on the latter end of the spectrum; its stock has dropped by about a third in the past year.
With the prospect of a new administration and approach to important industry considerations like the role of regulation and corporate taxes, some investors have grown optimistic about the near-term prospects for industrials companies. Could it be time to consider a shift toward industrials firms? If so, pay close attention to the three companies below. These are likely to be unknowns for many investors without ample sector experience, but they could be poised for growth in the new year.
