Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 18.6% over the past six months. This performance was worse than the S&P 500’s 11% decline.

Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one industrials stock boasting a durable advantage and two we’re passing on.

Two Industrials Stocks to Sell:

Manitowoc (MTW)

Market Cap: $275.1 million

Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.

Why Should You Dump MTW?

1. Backlog has dropped by 9.6% on average over the past two years, suggesting it’s losing orders as competition picks up

2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

3. Poor free cash flow margin of -0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $7.70 per share, Manitowoc trades at 10x forward price-to-earnings. If you’re considering MTW for your portfolio, see our FREE research report to learn more .

Trinity (TRN)

Market Cap: $2.05 billion

Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America.

Why Are We Hesitant About TRN?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle

2. Cash-burning history makes us doubt the long-term viability of its business model

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Trinity is trading at $25.52 per share, or 15.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TRN .

One Industrials Stock to Buy:

Trane Technologies (TT)

Market Cap: $71.35 billion

With low-pressure heating systems as the first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Is TT a Good Business?

1. Impressive 11.4% annual revenue growth over the last two years indicates it’s winning market share this cycle

2. Operating margin improvement of 5.3 percentage points over the last five years demonstrates its ability to scale efficiently

3. Share buybacks catapulted its annual earnings per share growth to 23.6%, which outperformed its revenue gains over the last two years