Top 5 Resilient Industrial Stocks for Navigating Economic Uncertainty: Johnson Controls, Boeing, and More

In uncertain economic times, five industrial stocks—Johnson Controls, Boeing, Waste Management, AZEK Company, and Larsen & Toubro—are noted for their resilience and growth. These companies, spanning sectors from aerospace to environmental services, have shown strong financial health and operational strength. Johnson Controls exceeded earnings expectations and raised guidance, Boeing benefits from defense contracts, Waste Management offers consistent returns, AZEK focuses on sustainable products, and Larsen & Toubro excels in infrastructure projects. Analysts maintain positive ratings, highlighting these stocks as leaders in navigating economic challenges.

Johnson Controls (JCI): Operational Strength and Upbeat Guidance

Johnson Controls has proven its resilience with a strong second-quarter performance in fiscal 2025. The company reported adjusted earnings per share (EPS) of $0.82, surpassing the consensus estimate of $0.80. More notably, it raised its full-year guidance, signaling confidence in its operational outlook despite macroeconomic headwinds.

Shares of JCI recently traded near their 52-week high of $91.14, closing at $89.75. This performance reflects investor confidence in the company’s fundamentals. Johnson Controls operates in the building products and equipment segment, which has shown relative stability with a modest YTD return of -0.26%, outperforming more volatile industrial sub-sectors like trucking and logistics.

Analysts have maintained a positive stance on the stock. Barclays analyst Julian Mitchell, a 5-star rated analyst on TipRanks, reiterated a Hold rating with a price target of $85, indicating that the stock is fairly valued but fundamentally sound.

Boeing (BA): Aerospace Resilience Amid Recovery

Despite facing operational challenges in recent years, Boeing remains a cornerstone of the aerospace and defense industry, which has posted a strong YTD return of 12.06%—the highest among all industrial sub-sectors. Boeing’s stock is currently trading at $223.74 and holds a “Strong Buy” consensus rating from analysts, reflecting optimism about its long-term recovery and defense contracts.

The aerospace and defense segment accounts for 22.56% of the industrial sector’s market weight, underscoring its significance. Boeing’s inclusion in this segment, along with its global footprint and government-backed contracts, provides a buffer against economic downturns. Its performance is a testament to the sector’s defensive characteristics, especially in times of geopolitical tension and increased defense spending.

Waste Management (WM): A Defensive Play with Consistent Returns

Waste Management has long been considered a defensive stock, and its recent performance reinforces that reputation. The waste management sub-sector has delivered a YTD return of 14.85%, the highest among all industrial categories. This strong performance is driven by the essential nature of the services provided—waste collection and environmental solutions—which remain in demand regardless of economic cycles.

WM’s stock is currently trading at $524.00, with a YTD gain of 2.03%. While the price appreciation may seem modest, the company’s consistent cash flow and stable business model make it a reliable choice during uncertain times. Analysts maintain a “Buy” rating on the stock, citing its strong fundamentals and predictable revenue streams.

AZEK Company (AZEK): Specialty Building Products with Growth Momentum

AZEK Company, a leader in sustainable building products, has garnered attention for its steady performance and analyst support. The company operates in the specialty industrial machinery and building products segments, which have posted YTD returns of 7.13% and -0.26%, respectively. Despite the mixed sector performance, AZEK has maintained a solid position due to its focus on eco-friendly materials and innovation.

Analysts have a consensus “Hold” rating on AZEK, with a price target of $52.50, suggesting a 5.7% upside from current levels. Truist Financial recently reiterated a “Buy” rating, highlighting the company’s growth potential and resilience. AZEK’s ability to maintain investor interest and analyst support during a challenging macroeconomic environment speaks to its operational strength and market positioning.

Larsen & Toubro (L&T): Infrastructure Giant with Strong Execution

Larsen & Toubro, a major player in engineering and construction, has demonstrated robust performance backed by strong execution and visibility on future growth. According to Emkay Global, L&T’s fundamentals remain solid, and the company continues to benefit from infrastructure spending and project momentum.

The engineering and construction sub-sector has a YTD return of -0.55%, but L&T has outperformed its peers, driven by its diversified project portfolio and international presence. The company’s resilience is further supported by its inclusion in analyst reports highlighting it as a top pick for navigating economic uncertainty.

L&T’s performance is particularly notable given the broader weakness in the construction sector. Its ability to maintain growth and investor confidence amid sectoral headwinds makes it a standout in the industrial space.

Sector Context: Industrials in a Mixed Landscape

The broader industrials sector has posted a modest YTD return of 1.28%, with significant variation across sub-sectors. While aerospace and waste management have led the gains, segments like trucking (-22.19%) and integrated freight & logistics (-21.46%) have struggled. This divergence underscores the importance of selective investing within the sector.

Specialty industrial machinery, which includes companies like AZEK, has shown a healthy 7.13% YTD return, while conglomerates and railroads have lagged. The sector’s performance reflects both cyclical and defensive characteristics, offering opportunities for investors who can identify companies with strong fundamentals and consistent earnings.

Analyst Ratings and Market Sentiment

Among the largest companies in the industrial sector, several have received favorable analyst ratings. For instance, stocks trading at $235.60, $489.88, and $242.62 all carry “Buy” ratings and have posted YTD returns above 2%. These ratings reflect analyst confidence in the companies’ ability to weather economic uncertainty.

The average analyst rating across top industrial stocks remains positive, with many companies receiving “Buy” or “Strong Buy” recommendations. This sentiment is supported by recent earnings beats, raised guidance, and sector-specific tailwinds in areas like defense and environmental services.