These 2 Industrial Stocks Have Had a Strong Year. Buy Them and Hold Forever.

Over the last year, some of the strongest stock performance has come not from artificial intelligence companies or large tech operators. Instead, some companies offering noticeable gains have been in the industrials sector.

Two that have performed particularly well over the last year are Howmet Aerospace (NYSE: HWM) and Generac Holdings (NYSE: GNRC). Let's look at why those stock price runs could continue, making each company a long-term buy.

Image source: Getty Images.

1. A key player in aerospace

Howmet produces various materials used in the commercial and defense aerospace markets, including forged wheels, engine products, and fastening systems. In Q4 2025, 53% of the company's revenue came from its commercial aerospace division. Its defense aerospace segment was the next highest revenue source, accounting for 17%.

Revenue for both divisions grew for the full year, and those segments could keep sales climbing in the years ahead. The global aerospace market is projected to nearly double from around $434 billion in 2026 to roughly $846 billion by 2035.

The aerospace market continuing to grow is certainly bullish for the stock price, but it's also important to keep reasonable expectations. The stock is up over 700% in the past five years and over 114% in the past year, so share prices have already risen significantly.

Its forward price-to-earnings (P/E) ratio of 55 is also elevated compared to its levels over the last several quarters, so there's not much room for missteps. Even slightly missing expectations in a quarter, as when it reports its first-quarter 2026 results on May 7, could weigh on the stock price in the short term.

Howmet can still offer a lot of upside as an investment given how the global aerospace market is expected to grow, and it looks like a long-term buy, but it's important for a long-term investor to be prepared. It's a when, not an if, that the stock price will take a short-term breather from its massive run.

2. Supplying backup power to the world

Generac sells standby generators and portable generators, and it has a solar and battery solutions division. What's really helped move the stock price over the last year has been the company's supply of backup power to data centers. In Q4 2025, Generac reported that sales in its commercial and industrial division jumped 10% to $400 million. That was largely attributed to data center customers.

"Although our fourth-quarter results reflect a softer outage environment and lower shipments of home standby and portable generators, our momentum in the data center end market has further accelerated as we continue to develop our position as a key supplier to multiple hyperscale customers which are expected to add significant volumes to our backlog over the next several quarters," CEO Aaron Jagdfeld said in the company's 2025 fourth-quarter report.

Data centers could be a significant source of revenue growth, making Generac a long-term buy. Generac has had a strong run over the last year, with shares climbing just under 100% as I write this, but as the stock price has dipped by more than 35% over the last five years, the company will have to keep executing to maintain momentum. Its forward P/E ratio of 25 is above recent-quarter levels, reflecting optimism around data centers as a growing revenue source for Generac.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Howmet Aerospace. The Motley Fool has a disclosure policy.