Buying industrial stocks could be a winning strategy for investors as the sector gets a boost from strong earnings growth trends that are expected to help it outpace the broader market.
Profit growth for the S&P 500 industrials sector is expected to be twice as strong as growth for the S&P 500 itself, FactSet data show. Industrials as a sector are also trading at a slight discount relative to the broader market.
The sector fell 15 percent last year, its worst annual performance since the financial crisis. Concerns over U.S.-China trade negotiations as well as fear of an economic slowdown kept the group under pressure last year. Some of these worries are receding, however.
