1 Industrials Stock with Exciting Potential and 2 We Find Risky

1 Industrials Stock with Exciting Potential and 2 We Find Risky

Adam Hejl

Fri, February 20, 2026 at 1:43 PM GMT+9 3 min read

In this article:

GLW

+2.53%

KEYS

-0.36%

^GSPC

-0.06%

APG

+0.56%

Whether you see them or not, industrials businesses play a crucial part in our daily activities. 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 23.5% return over the past six months has topped the S&P 500 by 16 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 is one industrials stock boasting a durable advantage and two we’re swiping left on.

Two Industrials Stocks to Sell:

APi (APG)

Market Cap: $19.15 billion

Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.

Why Does APG Give Us Pause?

Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

ROIC of 3.4% reflects management’s challenges in identifying attractive investment opportunities

APi is trading at $45.02 per share, or 27.3x forward P/E. Read our free research report to see why you should think twice about including APG in your portfolio, it’s free.

Keysight (KEYS)

Market Cap: $41.09 billion

Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.

Why Do We Think Twice About KEYS?

Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years

Sales over the last two years were less profitable as its earnings per share fell by 7.3% annually while its revenue was flat

Eroding returns on capital suggest its historical profit centers are aging

Keysight’s stock price of $240.50 implies a valuation ratio of 29.6x forward P/E. To fully understand why you should be careful with KEYS, check out our full research report (it’s free).

One Industrials Stock to Watch:

Corning (GLW)

Market Cap: $111.5 billion

Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.

Why Do We Watch GLW?

Offerings and unique value proposition resonate with customers, as seen in its above-market 9.9% annual sales growth over the last two years

Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 15.1%

Earnings per share grew by 22% annually over the last two years and trumped its peers

 






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At $129.93 per share, Corning trades at 42.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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