Anti-Solar? Love Solar? This Company Profits Either Way
The solar boom moved fast. Panels went up everywhere. But the industry wasn't built for what follows.
That gap is now creating a new opportunity and it's driven by necessity, not hype.
One NYSE company built its business around this exact moment.
See Why Wall Street is Watching This NYSE Company
3 Industrial Stocks Making New All-Time Highs
By Dan Schmidt. Publication Date: 2/14/2026.
Key Points
- Sector rotation has been a major market theme in 2026, and last year's losers are quickly turning into this year's winners.
- The industrial sector is finally benefiting from several long-term tailwinds, such as lower interest rates, a rebounding manufacturing cycle, and agentic AI adoption.
- Illinois Tool Works, Honeywell International, and Deere and Co. are three stocks hitting new all-time highs with optimistic forecasts for 2026.
- Special Report: [Sponsorship-Ad-6-Format3]
The S&P 500 has treated the 7,000 level like a bug zapper, retreating whenever the milestone approaches. But despite that frustrating market action, some previously beaten-down sectors are breaking out, and many "old economy" stocks are hitting fresh all-time highs as capital rotates out of pricey tech names.
Industrials fits that description. Several of its constituents are outperforming the market to start 2026. Below, we look at three industrial stocks setting new all-time highs and explain why these likely aren't the only records this group will set this year.
Why Investors Are Rotating Toward Industrials
This makes me furious (Ad)
I Called Black Monday. Now I'm Calling March 26!
I predicted the 1987 crash six weeks early. I called the fall of the Berlin Wall. I pinpointed the exact bottom in 2009.
Now I'm staking my reputation on March 26, 2026 - the day I believe Elon will announce the SpaceX IPO.
Bloomberg is calling it "the biggest listing of ALL TIME."
A $1.5 TRILLION valuation... the "wealth-building" moment of the decade.
Today, I'll show you how to get in before the big announcement.
The industrials sector spent most of 2025 searching for its footing. The Industrial Select Sector SPDR Fund (NYSEARCA: XLI) began breaking out at the end of the year, and that rally has continued into 2026 with a nearly 13% year-to-date (YTD) gain. The market is undergoing a broad rotation away from AI and tech stocks, but that alone doesn't fully explain the industrials breakout. Other contributing factors include:
- Manufacturing tailwinds: After two years of weakness, manufacturing is starting to benefit from the Federal Reserve's rate cuts. January's ISM Manufacturing PMI rose to 52.6, signaling expansion, and new orders grew at their fastest pace since 2022. Manufacturing is cyclical, and business owners hope this marks the start of another upswing.
- AI and improved efficiency: Many industrial firms spent the downturn shoring up systems through AI advances. Agentic AI has helped large industrials automate supply chains, predict maintenance needs, and reduce cost inefficiencies. Each of the three stocks below has successfully implemented AI into its business model.
- Infrastructure support for key industries: Semiconductors and memory steal the headlines for AI CapEx, but data centers are still huge buildings made of steel, generators, turbines and A/C units. Industrials benefit from this ripple-down demand, which looks set to continue given hyperscaler capex plans. Additionally, increased U.S. defense spending and a rebound in aerospace have added tailwinds for the sector.
3 Industrials Breaking Out to New All-Time Highs This Year
Industrials quietly broke out last year, but these three companies were stuck in neutral until recently. Now they're playing catch-up, and each has unique tailwinds or upcoming catalysts that could keep them rallying ahead of the broader market.
Illinois Tool Works: 80/20 Model Driving Growth Across Seven Segments
Illinois Tool Works Inc. (NYSE: ITW) operates seven divisions that sell fasteners, electrical equipment, welding materials, specialty components and more to a broad range of industrial clients. Each division focuses on its own niche products and customers, using an 80/20 approach—concentrating roughly 80% of effort on the top 20% of customers to cultivate high-value, durable relationships that help weather cyclicality.
The company reported Q4 2025 results before the market opened on Feb. 3, beating top- and bottom-line estimates. CEO Chris O'Herlihy highlighted expansion across all seven divisions, which helped lift Q4 operating margin to a record 26.5%. Full-year 2026 EPS guidance is $11.00–$11.40 (about 7% year-over-year growth), and the company expects to complete another $1.5 billion in share repurchases and raise its dividend payout for a 56th consecutive year. The stock is already up more than 10% since the report, and the optimistic guidance—along with bullish technical signals—points to more gains ahead.
Honeywell: Unlocking Value Through a Spin-Off
Like L3Harris Technologies Inc. (NYSE: LHX) last year—when it sold a division to the Department of Defense—Honeywell International Inc. (NASDAQ: HON) is embracing spinoffs. Honeywell plans to separate its Aerospace division so the parent can focus on industrial automation while the new company becomes a pure-play avionics business. Management expects the split to complete by Q3 2026.
Honeywell reported its Q4 2025 results on Jan. 29, surpassing expectations on both EPS and revenue. Q4 orders were up 23%, and the backlog grew to $37 billion—nearly a full year of revenue at current projections. Management raised full-year 2026 adjusted EPS guidance to $10.35–$10.65, with sales of $38.8 billion to $39.8 billion. Both figures imply organic growth of at least 6%, and 12 analysts have already raised price targets since the release.
Deere and Company: Automation Boosts Margins
Deere & Company (NYSE: DE) has become an AI success story thanks to automated farming equipment and a business model that now captures high-margin revenue from software systems and precision-agriculture products. In many ways, Deere is operating like a tech company that sells tractors.
Deere reported full-year 2025 operating margins of 12.6% in its Q4 2025 earnings release in November, along with $12.39 billion in revenue (up 14% year-over-year). The company also warned of tariff headwinds of up to $1.2 billion in 2026, a risk investors will be watching when Deere reports Q1 2026 results on Feb. 19.
Investors appear unconcerned about tariffs: the stock hit a new all-time high after a 13-day winning streak to begin February. Technical trends confirm the breakout, and DE reached a fresh high for the first time since last June. Deere provided modest revenue guidance with a wide range ($4.0 billion to $4.75 billion), and the stock still trades around 32 times forward earnings despite the new highs.
AEHR's +25% Spike: Latest AI Hyperscaler Order Improves Outlook
By Leo Miller. Publication Date: 2/16/2026.
Key Points
- Aehr Test Systems just saw its shares post another big up-move, as the small company put out a promising new press release.
- The firm is now providing testing systems for not one, but two chips developed by a leading hyperscaler.
- While the company sees potential for orders to expand greatly, one key insider is selling the stock.
- Special Report: [Sponsorship-Ad-6-Format3]
Small-cap semiconductor stock Aehr Test Systems (NASDAQ: AEHR) just secured a meaningful win. On Feb. 11, AEHR jumped more than 26% after the company announced a key order.
The press release reported that Aehr had won an initial order for its Sonoma systems from a leading hyperscale customer — a notable step as the company works to scale sales of these machines. Below is a closer look at the announcement and why it meaningfully improves Aehr's outlook.
Aehr's Sonoma System Receives Order for Next-Gen AI ASIC Testing
This makes me furious (Ad)
I Called Black Monday. Now I'm Calling March 26!
I predicted the 1987 crash six weeks early. I called the fall of the Berlin Wall. I pinpointed the exact bottom in 2009.
Now I'm staking my reputation on March 26, 2026 - the day I believe Elon will announce the SpaceX IPO.
Bloomberg is calling it "the biggest listing of ALL TIME."
A $1.5 TRILLION valuation... the "wealth-building" moment of the decade.
Today, I'll show you how to get in before the big announcement.
Aehr's Sonoma systems test semiconductor components under stress, exposing them to high voltages and elevated temperatures. That process lets companies using AI chips screen for defects and prevent substandard hardware from entering their data centers. Sonoma systems also validate long-term chip reliability.
Aehr said an existing customer placed an initial order to use Sonoma to test its next-generation application-specific integrated circuit (ASIC). ASICs are the kinds of chips that companies such as Broadcom (NASDAQ: AVGO) co-develop with customers like Google parent Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META), and they are custom-designed to run those customers' specific AI workloads.
Previously, Aehr had discussed this customer's plans to introduce higher-powered AI ASICs and noted it was developing modules to test those devices. But Aehr emphasized the importance of this announcement: "until now, Aehr had not officially been awarded the production burn-in business for this new device." The company expects to deliver the systems tied to this win in the summer of 2026.
"Large Expansion" of Sonoma Orders Is On the Table
Aehr also described the customer's current-generation AI ASIC — the device it is currently deploying or will soon deploy in data centers — and said production of those devices is ramping up. To support this rollout, the customer is forecasting a "very large expansion of Sonoma system purchases for that device in the second half of calendar 2026 and continuing into 2027." Aehr expects Sonoma orders for the current-generation device to arrive alongside orders for the next-generation device.
This language is stronger than in past disclosures, signaling that the company's confidence in generating meaningful Sonoma sales is shifting from aspirational to more tangible.
Moreover, the customer has already been using Sonoma on its current-generation AI ASICs and appears satisfied enough with the results to expand use to the next-generation device. That shows confidence in Aehr's technology and increases the likelihood of a sustainable, long-term partnership with this customer.
Is Aehr's Latest Insider Sale a Red Flag Amid Feb. 11 Spike?
A recent insider trade at Aehr is worth noting given the stock's big surge. On Feb. 13, two days after the announcement, Rhea Posedel sold more than $420,000 worth of shares. Posedel is Aehr's founder, former CEO and current chairman of the board. The sale was not made under a 10b5-1 plan, which indicates the trade was discretionary.
The timing and the fact that a top stakeholder executed the sale could raise questions about whether the price spike is sustainable. At the same time, the sale represented a small sliver of Posedel's holdings. After selling roughly 14,000 shares, they still hold about 528,000 shares — roughly 97.4% of the prior stake — suggesting continued confidence in Aehr's longer-term outlook.
Aehr: A High-Volatility Play on the AI Boom
Aehr's outlook appears to be improving. Sonoma machines have a clear use case: helping firms that are investing heavily in AI processors ensure deployed hardware is reliable. The momentum in Aehr's Sonoma business improves visibility around AI-driven revenue and reduces some uncertainty about the company's growth trajectory.
That said, risks remain. Aehr appears highly dependent on a single large customer, and a deterioration in that relationship would be materially damaging. The company has previously reported Sonoma orders from multiple customers, but the large expansion it described is not yet secured, leaving room for the opportunity to change.
Aehr trades with significant volatility: shares fell nearly 18% on Feb. 12, the day after the spike, reflecting investor skepticism. Given the mixed signals — improving commercial visibility but concentration and execution risks — investors should conduct their own research before deciding whether to take a position in AEHR.
This email communication is a sponsored email from i2i Marketing Group, LLC, a third-party advertiser of MarketBeat. Why did I get this email content?.
We are not securities dealers or brokers, investment advisers or financial advisers, and you should not rely on the information herein as investment advice. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the profiled company's SEC and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk.
If you have questions or concerns about your subscription, please contact our U.S. based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2026 MarketBeat Media, LLC. All rights protected.
345 North Reid Place, Sixth Floor, Sioux Falls, SD 57103-7078. USA..
Comments
Post a Comment