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Industrial Sector Stocks in the S&P 500 Index
Explore the performance and market capitalization of the 2026 S&P 500 industrials, a sector currently representing 9% of the index with a 12% YTD return.
This page is for informational and educational purposes only and does
not constitute investment advice. Always consult a qualified financial
professional before making investment decisions.
Industrial Sector Stocks in the S&P 500 Index represent the backbone of the American economy, encompassing aerospace, defense, machinery, and transportation. As of April 2026, this sector has shown significant cyclical leadership, outperforming broader benchmarks with a 12% YTD gain. Investors often track this group through the S&P 500 section to gauge industrial health and infrastructure spending. With a diverse range of holdings from GE Aerospace to Union Pacific, understanding these components is vital for a balanced portfolio. For a broader view, you can explore Publicly Traded Companies by Sector and Industry.
Key Takeaways
01
Sector Composition & Weight
The industrial sector accounts for approximately 9% of the S&P 500. It is less concentrated than technology, with the top 10 stocks making up 39% of the sector's total value.
02
2026 Performance Surge
Industrials saw their best 27-day start since 2019, rising 12% YTD through February. This cyclical leadership is driven by infrastructure and data center demand.
03
Aerospace & Defense Lead
Companies like Boeing Company (The) (BA) and GE Aerospace remain pivotal components despite varying individual stock performance.
04
Valuation Metrics
The current sector P/E ratio of 29.33 is higher than the five-year average of 22.91. Investors should monitor Caterpillar, Inc. (CAT) for machinery valuation trends.
Top Industrial Sector Stocks in the S&P 500 Index by Market Cap (2026)
Market capitalization in the industrial sector is led by aerospace giants and heavy machinery leaders following the GE/RTX reorganization.
| Rank | Ticker | Company | Industry | Market Cap | YTD % | P/E Ratio | Div Yield |
|---|---|---|---|---|---|---|---|
| 1 | GE | GE Aerospace | Aerospace & Defense | $320B | +14.2% | 40.5 | 0.45% |
| 2 | RTX | RTX Corporation | Aerospace & Defense | $255B | +9.1% | 25.4 | 2.10% |
| 3 | CAT | Caterpillar Inc. | Farm & Heavy Construction | $245B | +11.5% | 26.6 | 1.10% |
| 4 | GEV | GE Vernova | Specialty Industrial | $159B | +18.3% | 94.7 | 0.00% |
| 5 | ETN | Eaton Corp PLC | Electrical Equipment | $146B | +15.0% | 37.9 | 1.08% |
| 6 | HON | Honeywell International | Conglomerates | $137B | +4.2% | 22.8 | 2.09% |
| 7 | UNP | Union Pacific Corp | Railroads | $128B | +3.8% | 18.4 | 2.49% |
| 8 | UPS | United Parcel Service | Integrated Freight | $122B | +2.1% | 20.5 | 4.20% |
| 9 | LMT | Lockheed Martin | Aerospace & Defense | $115B | +5.4% | 17.2 | 2.70% |
| 10 | PWR | Quanta Services | Engineering & Construction | $45B | +3.18% | 38.2 | 0.12% |
Market data is approximate and for informational purposes only. Data reflects early Q2 2026 figures. Not a recommendation to buy or sell.
Industrial Sector Stocks in the S&P 500 Index — Complete Company List
Industrial Sector Stocks in the S&P 500 Index
Aerospace and Defense Companies
- Arconic Inc. (ARNC) (Precision engineering and advanced manufacturing: aerospace, automotive market)
- Boeing Company (The) (BA) (World’s largest aerospace company; commercial jetliners; defense, drones, space and security systems)
- General Dynamics Corporation (GD) (Jet aircraft, combat vehicles, communication systems, cyber security, information technology systems, mission support services, munitions, shipbuilding, submarines and weapons systems)
- Honeywell International Inc. (HON) (Aerospace products and services for commercial and military markets: turbochargers; performance materials; sensing and security technologies)
- Huntington Ingalls Industries, Inc. (HII) (Military shipbuilding: aircraft carriers, submarines, amphibious assault ships; nuclear services)
- L-3 Communications Holdings, Inc. (LLL) (Aerospace products and services for commercial and military markets; communication and electronic systems)
- Lockheed Martin Corporation (LMT) (Aeronautical research, IT services, the Joint Light Tactical Vehicle, naval systems, PAC-3 Missiles, satellites (commercial and government)
- Northrop Grumman Corporation (NOC) (Cyber security, command and control, communications, intelligence, logistics, reconnaissance, strike aircraft, surveillance, unmanned systems)
- Raytheon Company (RTN) (Aerospace products and services for commercial and military markets: integrated defense systems, cybersecurity, missile systems, space and airborne systems)
- Rockwell Collins, Inc. (COL)
- Textron Inc. (TXT) (Industrial conglomerate: helicopters, aircraft manufacturing; transportation vehicles for golf courses, industrial and electrical tools)
- Transdigm Group Incorporated (TDG) (Aerospace commercial and military markets: components, security systems and subsystems, displays, audio systems)
- United Technologies Corporation (UTX) (Conglomerate: aircraft engines, helicopters, HVAC, and other industrial products)
Air, Heat, Refrigeration and Plumbing
- Smith (A.O.) Corporation (AOS) (Water Heating Equipment)
- Ingersoll-Rand Plc. (IR) (Diversified Industrial Manufacturer: brands include Club Car, Ingersoll Rand, Thermo King and Trane)
Airlines
- Alaska Air Group, Inc. (ALK) (Alaska Airlines and Horizon Air)
- American Airlines Group, Inc. (AAL) (American Airlines and US Airways)
- Delta Air Lines, Inc. (DAL) (Partners include Air France-KLM, Alitalia, Virgin Australia and Virgin Atlantic)
- Southwest Airlines Company (LUV) (Approximately 3,600 daily flights)
- United Continental Holdings, Inc. (UAL) (United Air Lines)
Building Materials and Products
- Fastenal Company (FAST) (Fastener distributor)
- Fortune Brands Home & Security, Inc. (FBHS) (Doors, Faucets and Cabinets; Master Lock Brand)
- Masco Corporation (MAS) (Diversified product manufacturer)
Business Data, Information, Research and Analytics
- Equifax, Inc. (EFX) (Financial, consumer and commercial data and analytical services)
- Nielsen Holdings plc (NLSN) (Provides TV, radio, online and mobile media analytical and viewer consumption services and data)
- Verisk Analytics, Inc. (VRSK) (Data analytics services for the insurance, energy, healthcare, financial services, government and risk management markets)
Commercial Vehicle Manufacturers
- CNH Industrial N.V. (CNHI) (Diversified manufacturer: Commercial vehicles: buses, firefighting vehicles, specialty vehicles)
- PACCAR Inc. (PCAR) (Trucks: brands include Kenworth, Peterbilt and DAF)
Construction and Engineering Services
- Fluor Corporation (FLR) (Construction, Engineering and Procurement Services)
- Jacobs Engineering Group Inc. (JEC) (Diverse construction services)
- Quanta Services, Inc. (PWR) (Contracting services)
Construction Machinery and Equipment
- Caterpillar, Inc. (CAT) (Construction equipment, mining equipment, engines)
- Deere & Company (DE) (Agricultural, construction, forestry and turf equipment)
Distribution
- W.W. Grainger, Inc. (GWW) (Distributor of maintenance, repair and operating supplies)
Diversified Industrial Equipment, Products and Services
- 3M Company (MMM) (Consumer Products, electronic devices, telecommunication networks, health care products, industrial products, safety and security products)
- Dover Corporation (DOV) (Oil & gas equipment, engineered systems, fluids, refrigeration & food equipment)
- General Electric Company (GE) (Appliances and lighting, aviation products, energy management, financial services, healthcare products, oil & gas equipment, power generation, railroad equipment, water products)
- Illinois Tool Works Inc. (ITW)
- Johnson Controls International plc (JCI) (Facilities management, HVAC, industrial refrigeration products, security and fire safety systems, lead-acid automotive batteries, batteries for hybrid and electric vehicles)
Electrical Equipment
- AMETEK, Inc. (AME) (Electronic instruments and electro-mechanical devices)
- Eaton Corporation, Plc. (ETN) (Ireland: electrical equipment, systems and services; pumps, motors, valves and hydraulic power units; industrial filtration, aerospace products, automotive products)
- Emerson Electric Company (EMR) (Process management, industrial automation, network power, climate technologies, tools, storage products, electrical appliances)
- Rockwell Automation, Inc. (ROK) (Automation power, control and information products)
Engines, Generators and Motors
- Cummins Inc. (CMI) (Diesel and natural gas engines, power generation systems, related parts and services, distribution)
Equipment Leasing and Rental Companies
- United Rentals, Inc. (URI) (Construction, Industrial)
Freight and Logistics
- C.H. Robinson Worldwide, Inc. (CHRW) (Non-asset based transportation services; fresh produce)
- Expeditors International of Washington, Inc. (EXPD) (Non-asset based transportation services)
- J.B. Hunt Transport Services, Inc. (JBHT) (Full truckload freight transportation services throughout Canada, Mexico and the United States)
- FedEx Corporation (FDX)
- United Parcel Service, Inc. (UPS)
Professional Instrumentation
- Fortive Corporation (FTV) (Industrial technologies and professional instrumentation)
Professional Services
- Robert Half International Inc. (RHI) (Risk consulting and specialty staffing services)
Railroads
- CSX Corporation (CSX) (20,000 miles of track primarily located in the Eastern region of the United States)
- Kansas City Southern (KSU) (Holding company with subsidiaries that include Kansas City Southern Railway Company, Kansas City Southern de Mexico, Panama Canal Railway Company and Texas Mexican Railway Company)
- Norfolk Southern Corporation (NSC) (Subsidiaries include Norfolk Southern Railway, Lambert’s Point Docks and Pocahontas Land)
- Union Pacific Corporation (UNP) (Western region of the United States and connects with Canada’s rail systems and all six major gateways into Mexico)
Security and Protection
- Allegion Plc. (ALLE) (Mechanical security hardware)
Tools
- Stanley Black & Decker, Inc. (SWK) (Hand tools, power tools and tool storage products)
Uniform Companies
- Cintas Corporation (CTAS) (Uniforms, supplies and equipment, fire protection services)
Waste Services
- Republic Services, Inc. (RSG) (Solid waste, recycling)
- Stericycle, Inc. (SRCL) (Medical waste services)
- Waste Management, Inc. (WM) (Solid waste, recycling)
Water Technology, Valves, Flow Control
- Flowserve Corporation (FLS) (Flow control products and services)
- Parker-Hannifin Corporation (PH) (Valves, water system products, heat management products)
- Pentair Plc. (PNR) (United Kingdom: water, thermal management and equipment, filtration products)
- Roper Technologies, Inc. (ROP) (Medical and scientific imaging products and software, RF technology, water products: flow measurement and metering equipment, pumps, water meters)
- Xylem Inc. (XYL) (Wide range of water technologies and products)
Risks & Considerations
Cyclical Sensitivity
Industrial stocks are highly sensitive to economic cycles. A slowdown in GDP growth or manufacturing output can lead to rapid price corrections.
Interest Rate Exposure
Many industrial companies carry significant debt for capital expenditures. Sustained high interest rates can compress margins and increase borrowing costs.
Supply Chain Vulnerabilities
Global operations in aerospace and machinery rely on complex supply chains. Geopolitical tensions or logistics disruptions can impact delivery schedules and earnings.
Valuation Premiums
With the sector trading at a P/E of 29.33 compared to a 5-year average of 22.91, there is a risk that current prices have already baked in future growth expectations.
These risk factors are for educational purposes only and are not exhaustive. Individual investment decisions should be based on thorough due diligence.
Frequently Asked Questions
GE Aerospace (GE, $320B), RTX ($255B), Caterpillar (CAT, $245B) lead aerospace/machinery. GE Vernova (GEV, $158B), Eaton (ETN, $146B) follow energy/industrial.
+12% YTD through Feb (best 27-day start since 2019); 6-month +5.5%, 12-month +26%. Cyclical leadership vs tech lag.
~9% of S&P 500; top 3 stocks 17% sector weight, top 10 39%. Less concentrated than tech (58%).
29.33 current vs 5Y avg 22.91 (expensive); aerospace/machinery drive premium.
GE ($320B), RTX ($255B), GEV ($158B); LMT/NOC mid-large cap.
Comfort Systems, Generac, Quanta Services (PWR +3.18%) lead YTD; sector rotation favors cyclicals.
XLI (SPDR Industrials) tracks 39% top 10 concentration; VIS (Vanguard) alternative.
Infrastructure (IIJA), data centers boost machinery/HVAC; aerospace recovery post-Boeing issues.
Last updated April 2026 · Data sourced from U.S. exchange filings