Industrial stocks are sensitive to the economic cycle. Many of them have already fallen victim to the downturn and have reversed much of their earlier gains from the past few years. However, 2025 is shaping up to be a breakout year for industrial stocks elsewhere. The industrial sector is very broad, and you’ll always find winners that outpace expectations and draw the attention of investors who once overlooked these workhorse companies.
Manufacturing and industrial firms have doubled down on digital transformation and have poured resources into automation to boost efficiency. This investment is paying off as companies become more agile and better equipped to handle shocks, whether from geopolitical tensions, labor shortages, or shifting customer needs. It’s worth looking into the biggest winners so far this year, as they could continue building on the momentum.
A forklift truck carrying a pallet of material in the warehouse of an industrial machinary manufacturer.
Methodology
For this article, I screened the best-performing industrial stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Waste Connections Inc (NYSE:WCN)
Number of Hedge Fund Holders In Q4 2024: 49
Waste Connections Inc (NYSE:WCN) is a leading North American provider of non-hazardous waste collection, transfer, disposal, and recycling services for residential, commercial, and industrial customers.
The stock is up significantly so far in 2025, largely due to the company’s strong 2024 financial results and a bullish outlook for 2025.
In February, Waste Connections reported double-digit growth in both revenue and adjusted EBITDA for 2024, with a notable 100 basis point EBITDA margin expansion to an industry-leading 32.5%.
This performance was driven by robust core pricing, record levels of private company acquisitions totaling approximately $750 million in annualized revenues, and improved employee retention, which reduced turnover by over 1,000 basis points since 2022.
The company’s guidance for 2025 is optimistic, projecting revenue growth of 6% to 7.6%, underpinned by ongoing acquisition activity, improving commodity-driven revenues, and the anticipated benefits from new extended producer responsibility laws in states like Oregon, which are expected to drive additional revenue for its materials recovery facilities.
The consensus price target of $204.4 implies 3.4% upside.
WCN stock is up 15.53% year-to-date.
14. RELX PLC (NYSE:RELX)
Number of Hedge Fund Holders In Q4 2024: 16
RELX PLC (NYSE:RELX) is a global information and analytics company that serves professional and business customers with decision tools and data-driven solutions across scientific, technical, medical, legal, and risk management markets.
The stock is up significantly so far in 2025 due to its strong 2024 results and continued operational momentum. In February, RELX reported underlying revenue growth of 7% to £9.43 billion and a 10% increase in adjusted operating profit to £3.2 billion.
RELX’s board proposed a 7% increase in the annual dividend and announced a substantial £1.5 billion share buyback program for 2025, following a £1 billion buyback in 2024. This aggressive capital return policy has been a major catalyst for the stock.
RELX stock is up 16.91% year-to-date.
13. DNOW Inc (NYSE:DNOW)
Number of Hedge Fund Holders In Q4 2024: 26
DNOW Inc (NYSE:DNOW) is a global distributor of energy and industrial products, as well as engineered process and production equipment, serving sectors like oil and gas, chemicals, mining, and renewables.
The stock is up significantly so far in 2025 due to its robust 2024 financial performance and shareholder-friendly capital allocation. In February, DNOW reported a strong finish to 2024, with full-year revenue of $2.37 billion and net income of $81 million. The company generated $289 million in free cash flow. That’s nearly double its prior projections, and it ended the year with $256 million in cash and no long-term debt.
DNOW also completed the acquisition of Trojan Rentals for $114 million, expanding its capabilities in pump rentals and industrial automation. The Q4 2024 earnings beat, with EBITDA and gross margins exceeding expectations, led to a significant stock price surge.
The consensus price target of $19 implies 22.6% upside.
DNOW stock is up 19.29% year-to-date.
12. Worthington Enterprises Inc (NYSE:WOR)
Number of Hedge Fund Holders In Q4 2024: 16
Worthington Enterprises Inc (NYSE:WOR) designs and manufactures pressure vessels, steel cylinders, and a variety of consumer and building products.
The most significant event driving the stock’s surge in 2025 was it reporting a strong third quarter for fiscal 2025, with adjusted earnings per share of $0.91, handily beating analyst expectations of $0.70, and revenue of $304.5 million, exceeding forecasts.
Earnings before taxes rose 30% and operating cash flow increased 14% to $57.1 million, despite a 4% drop in net sales due to the deconsolidation of the Sustainable Energy Solutions segment.
The acquisition of Ragasco and the launch of new products, such as the Halo Griddle at Walmart and Level5 drywall tools at Sherwin-Williams, contributed to the positive outlook. Worthington’s ongoing share buybacks and consistent dividend payments further signaled management’s confidence in the company’s trajectory.
The consensus price target of $48 implies 0.5% upside.
WOR stock is up 19.71% year-to-date.
11. Insteel Industries Inc (NYSE:IIIN)
Number of Hedge Fund Holders In Q4 2024: 15
Insteel Industries Inc (NYSE:IIIN) is the largest U.S. manufacturer of steel wire reinforcing products for concrete construction applications.
The key catalyst for the stock’s strong performance in 2025 was its second quarter earnings release on April 17, 2025, which showed a significant beat on both earnings and revenue.
The company reported earnings per share of $0.52, far surpassing the $0.29 consensus, and revenue of $160.7 million, which exceeded forecasts by 7.2%. This earnings surprise led to a 10.7% jump in the stock price immediately following the announcement.
The quarter’s results were driven by a 28.9% year-over-year increase in shipments, improved gross margins to 15.3% from 12.3%, and effective cost management. Management cited recovering demand for concrete reinforcement products and lower unit manufacturing costs as key contributors. Despite $0.7 million in restructuring and acquisition-related costs, net earnings rose to $10.2 million from $6.9 million a year earlier.
IIIN stock is up 20.57% year-to-date.
10. Republic Services Inc (NYSE:RSG)
Number of Hedge Fund Holders In Q4 2024: 51
Republic Services Inc (NYSE:RSG) is the second-largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services in the United States.
The main reason for the stock’s outperformance in 2025 has been its strong financial results and robust forward guidance. The company’s fourth quarter and full-year 2024 results, released in February 2025, showed net income of $512 million for the quarter and $2.043 billion for the year, both up significantly from the prior year.
Adjusted EBITDA margin expanded by 110 basis points, and the company generated $3.94 billion in operating cash flow for 2024. Republic also announced plans to invest about $1 billion in acquisitions in 2025, with a substantial portion already spent, signaling aggressive growth ambitions.
The consensus price target of $240.4 implies 1% downside.
RSG stock is up 21.21% year-to-date.
9. Beacon Roofing Supply Inc (NASDAQ:BECN)
Number of Hedge Fund Holders In Q4 2024: 53
Beacon Roofing Supply Inc (NASDAQ:BECN) is the largest publicly traded distributor of roofing materials and complementary building products in the United States and Canada.
The most significant event driving the stock higher in 2025 is QXO’s highly publicized acquisition offer, which came at a substantial premium to Beacon’s unaffected share price and sparked considerable trading activity and speculation about the company’s future.
Beacon’s board has advised shareholders to reject the offer, arguing it undervalues the company’s growth potential and strategic plans, which have fueled further investor optimism.
In addition to the takeover interest, Beacon reported strong first-quarter 2025 results, with revenue up 15% year-over-year, driven by robust demand in both residential and commercial roofing segments and successful execution of its Ambition 2025 growth strategy.
The company also completed the acquisition of DM Figley Company, expanding its waterproofing division and opening new branches in key states, which aligns with its market expansion goals.
The consensus price target of $121.5 implies 2% downside.
BECN stock is up 22.01% year-to-date.
8. Ryerson Holding Corp (NYSE:RYI)
Number of Hedge Fund Holders In Q4 2024: 14
Ryerson Holding Corp (NYSE:RYI) is a value-added processor and distributor of industrial metals, supplying carbon and stainless steel, aluminum, and specialty metals through a network of service centers in the United States, Canada, Mexico, and China.
The primary reason for the stock’s strong performance in early 2025 is a rebound in industrial metals demand and positive sentiment around the company’s recent acquisitions, including the purchase of Production Metals in August 2024, which expanded Ryerson’s reach in aluminum and specialty steels.
The consensus price target of $25 implies 11% upside.
RYI stock is up 23.03% year-to-date.
7. Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB)
Number of Hedge Fund Holders In Q4 2024: 6
Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ:OMAB) operates 13 airports in northern and central Mexico, including Monterrey International, and generates revenue from both aeronautical and non-aeronautical services.
The main catalyst for the stock’s strong 2025 performance is the sharp increase in passenger traffic, with March 2025 numbers up 11.8% year-over-year.
This operational strength has led to revenue and earnings growth that has consistently beaten analyst expectations, particularly as Mexico’s air travel market continues to expand.
The consensus price target of $82.5 implies 3.24% downside.
OMAB stock is up 24.21% year-to-date.
6. YSX Tech Co Ltd (NASDAQ:YSXT)
Number of Hedge Fund Holders In Q4 2024: 1
YSX Tech Co Ltd (NASDAQ:YSXT) provides insurance aftermarket value-added services to auto insurance and brokerage companies in China.
The stock’s sharp move in 2025 is mainly tied to its February 2025 earnings release, which showed total revenue for the six months ended September 30, 2024, rising 28.7% to $34.1 million, driven by a massive 879% surge in revenue from vehicle driving risk screening services. However, net income declined 22% to $1.9 million due to changes in customer mix and pricing pressures, with management signaling plans to refine pricing strategies and improve margins going forward.
The company’s December 2024 IPO, which raised about $5.75 million, also contributed to heightened investor attention and trading volatility, with shares surging over 70% in the month following the earnings release and remaining up more than 35% year-to-date as of late April 2025. Additionally, the company was added to the NASDAQ Composite Index in December, which likely spurred further institutional interest and momentum trading.
YSXT stock is up 37.04% year-to-date.
5. Lightbridge Corp (NASDAQ:LTBR)
Number of Hedge Fund Holders In Q4 2024: 4
Lightbridge Corp (NASDAQ:LTBR) is a nuclear technology company developing and commercializing advanced metallic nuclear fuels designed to improve reactor safety, efficiency, and reduce nuclear waste.
The biggest catalyst for LTBR’s stock surge in 2025 has been a combination of macro and company-specific factors. The most important driver is the growing investor focus on nuclear power as a solution to surging electricity demand from artificial intelligence and data centers, which has lifted sentiment for nuclear technology stocks broadly.
Lightbridge’s partnership with Oklo, announced in January 2025, to explore co-locating a commercial-scale fuel fabrication facility, was a key event that triggered a sharp rally in the shares.
The company also reported significant technical progress in its 2024 year-end update, including successful uranium-zirconium fuel casting at Idaho National Laboratory, positive safety and performance data from MIT, and a strong cash position of $40 million after raising $15 million via stock issuance. Despite being pre-revenue and reporting a widened net loss of $11.8 million for 2024, investors have bid up the stock on the prospect of future commercialization and the critical role of advanced nuclear fuel in meeting future energy needs.
LTBR stock is up 68.29% year-to-date.
4. H&E Equipment Services Inc (NASDAQ:HEES)
Number of Hedge Fund Holders In Q4 2024: 14
H&E Equipment Services Inc (NASDAQ:HEES) is one of the largest equipment rental companies in the United States, serving the construction and industrial sectors with a broad range of rental equipment and related services.
The overwhelming reason for HEES’s stock surge in 2025 is the February announcement that Herc Holdings will acquire H&E in a cash-and-stock transaction valued at $104.89 per share, representing a substantial premium to the pre-announcement price. This news sent the stock soaring by more than 80% in a matter of days, with shares reaching an all-time high of $101.28 on February 18, 2025.
The deal followed H&E’s termination of a prior agreement with United Rentals after Herc submitted a superior offer, ultimately valuing H&E at $5.3 billion.
The merger is expected to generate $300 million in annual EBITDA synergies and will make Herc the third-largest rental company in North America. The only other notable event was H&E’s fourth-quarter and full-year 2024 earnings, reported in late February, which showed flat revenue and a 5.6% decline in adjusted EBITDA, but this was overshadowed by the acquisition news.
The stock is up significantly so far in 2025.
The consensus price target of $71.3 implies 20.1% downside.
HEES stock is up 82.97% year-to-date.
3. Hertz Global Holdings Inc (NASDAQ:HTZ)
Number of Hedge Fund Holders In Q4 2024: 35
Hertz Global Holdings Inc (NASDAQ:HTZ) is one of the world’s largest vehicle rental companies, operating the Hertz, Dollar, Thrifty, and Firefly brands across North America, Europe, and other global markets.
The biggest driver behind HTZ’s surge in 2025 was the disclosure that Bill Ackman’s Pershing Square acquired a major stake in the company, initially revealed as 12.7 million shares, which sent the stock soaring 56% in a single session and then another 22% in pre-market trading, as investors speculated about Ackman’s influence and potential strategic moves. The news also sparked rumors of a potential partnership with Uber.
Other notable events included Hertz’s announcement of a “back to basics” operational transformation, aiming to streamline costs and focus on core business execution, which was highlighted in their February 2025 earnings release.
The consensus price target of $4.1 implies 51.7% downside.
HTZ stock is up 132.79% year-to-date.
2. Junee Ltd (NASDAQ:JUNE)
Number of Hedge Fund Holders In Q4 2024: 2
Junee Ltd (NASDAQ:JUNE) provides interior design, fit-out, and maintenance services for residential and commercial spaces, primarily in Hong Kong, and recently expanded its ambitions into artificial intelligence infrastructure.
The stock is up significantly so far in 2025 due to its aggressive pivot into the AI sector. On March 12, Junee announced the acquisition of a 51% stake in MindEnergy AI Technology, a specialist in AI server design and software, marking a strategic shift from traditional interior design to AI computing solutions.
This was followed by a series of major announcements: a planned $40 million financing round to build an AI supercomputing center in Australia, a $100 million customer purchase agreement with PanaAI Technology for Nvidia H200 GPU servers, and a broader $200 million investment plan to develop advanced AI infrastructure.
JUNE stock is up 191.65% year-to-date.
1. eLong Power Holding Ltd (NASDAQ:ELPW)
Number of Hedge Fund Holders In Q4 2024: 1
eLong Power Holding Ltd (NASDAQ:ELPW) develops and manufactures high-power lithium-ion batteries for commercial vehicles and energy storage, with operations based in China.
The stock is up significantly so far in 2025 as the company received Nasdaq staff determination notices in late March regarding non-compliance with minimum market value and bid price requirements, which paradoxically drew speculative interest as traders bet on a potential compliance recovery and short squeeze.
The stock’s biggest moves occurred between April 14 and April 17, when ELPW jumped due to retail momentum and technical breakouts on high volume.
There was no major operational news or earnings release during this period, but the stock’s extreme volatility and low float made it a target for speculative trading.
The completion of the company’s business combination with TMT Acquisition Corp in November 2024 laid the groundwork for its public listing, but the 2025 rally was almost entirely a function of market mechanics.
ELPW stock is up 194.32% year-to-date.
While we acknowledge the potential of ELPW, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ELPW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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