UBS says these are the top 11 stocks in the booming industrial sector

Core Viewpoint - An overlooked part of the market, specifically industrial stocks, is performing exceptionally well in 2025, with UBS identifying 11 compelling buy-rated investment ideas in this sector [2][4]. Group 1: Market Performance - Industrial stocks in the S&P 500 have increased by 15.2% year-to-date, surpassing the benchmark index's rise of 12% [3]. Group 2: Recommended Stocks - UBS highlighted the following companies as strong investment opportunities: - Woodward (WWD): Year-to-date performance of +42%, with expectations of expanding margins and doubling free cash flow (FCF) in the coming years, leading to revenue, EBITDA, and FCF estimates 3%, 6%, and 11% above consensus for FY26 [5]. - Alaska Air Group (ALK): Year-to-date performance of -9%, with confidence in long-term earnings power due to premium seat expansion and easing competitive pressures [6]. - CSX Corporation (CSX): Year-to-date performance of +1.5%, with multiple drivers of EPS growth anticipated and a reduction in operating costs by approximately $100 million in 2026 [7]. - TE Connectivity PLC (TEL): Year-to-date performance of +49%, with strong exposure to AI growth and signs of recovery in other lagging end-markets [8].