12 Best Industrial Stocks to Buy for the Rest of 2022

The pros love several value-oriented sectors for 2022, including industrials. Read on as we highlight 12 top industrial stocks for the remainder of the year.

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The industrial sector entered 2022 the same way they entered 2021: generally favored by analysts anticipating growth from a healing economy. But, like so many other corners of the market, numerous names within the sector – including many of the best industrial stocks – were hit hard.

But even amid stiff broad-market headwinds, industrial stocks have shown some resilience. For the year-to-date, the Industrial Select Sector SPDR Fund (XLI (opens in new tab)) is "only" down around 17% compared to the S&P 500's more than 20% decline.

Plus, valuations for some of the best industrial stocks for 2022 are much more attractive than they were in 2021. Indeed, the industrials sector is trading at 17 times forward earnings compared to a more than 25 times forward price-to-earnings (P/E) ratio seen last year, per Yardeni Research.

And industrial stocks stand a fighting chance for the remainder of this year, despite growth concerns related to China's months-long COVID-19-related lockdowns and the Fed's rate-hiking cycle. In May, for instance, the Institute of Supply Management's manufacturing Purchasing Manager Index was up 0.7 percentage point from April, marking a 24th straight month of economic growth.

Plus, the travel industry is poised for a red-hot summer, with consumers ready to travel again amid pent-up demand for vacation. This is certainly good news for many industrial stocks.

"If GDP continues to expand as we expect in 2022 (short-term setbacks notwithstanding) and interest rates inch higher," say Janus Henderson Investors strategists, "value-oriented sectors such as financials, industrials, materials and energy might once again take the lead."

However, given that 2022's economy will not be as vibrant as 2021's, it'll pay to be choosy. With that in mind, read on to explore our 12 best industrial stocks to buy for the remainder of 2022, including what sets these shares apart from the rest of the sector pack.

Data is as of June 13. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analyst ratings and estimates are courtesy of S&P Global Market Intelligence. Stocks are listed by analysts' consensus recommendation, from lowest to highest.

Riccardo A. Davis
Contributing Writer, Kiplinger.com

Riccardo is an award-winning business journalist who has covered Fortune 500 companies for news organizations across the United States.