American Airlines, Alaska Air lead list of undervalued industrial stocks

As the third-quarter 2026 earnings season unfolds, investors are assessing valuations across the U.S. industrials sector, which includes airlines, aerospace and defense contractors, transportation companies and industrial services providers.

A quantitative screen of industrial stocks identifies 14 companies with attractive valuation grades, led by American Airlines Group (AAL), Alaska Air Group (ALK) and StandardAero (SARO).

American Airlines and Alaska Air Group both top the list with A+ valuation grades from Seeking Alpha, alongside StandardAero. Amentum Holdings (AMTM), Avis Budget Group (CAR), Southwest Airlines (LUV), Robert Half (RHI) and United Airlines Holdings (UAL) follow with A grades. Seven additional companies, including Herc Holdings (HRI), United Parcel Service (UPS) and SkyWest (SKYW), received A- grades. Herc Holdings also stands out with a Buy Quant Rating.

Seeking Alpha's valuation grade measures how attractively a stock is priced relative to its fundamentals, with A+ indicating the most undervalued rating and F the most overvalued. The screen ranks the companies according to their valuation grades, highlighting industrial stocks that currently score favorably on the platform's quantitative valuation metrics.

Here is the list:

1. American Airlines Group Inc. (AAL), Valuation grade: A+

2. Alaska Air Group, Inc. (ALK), Valuation grade: A+

3. StandardAero, Inc. (SARO), Valuation grade: A+

4. Amentum Holdings, Inc. (AMTM), Valuation grade: A

5. Avis Budget Group, Inc. (CAR), Valuation grade: A

6. Southwest Airlines Co. (LUV), Valuation grade: A

7. Robert Half Inc. (RHI), Valuation grade: A

8. United Airlines Holdings, Inc. (UAL), Valuation grade: A

9. Centuri Holdings, Inc. (CTRI), Valuation grade: A-

10. Herc Holdings Inc. (HRI), Valuation grade: A-

11. Resideo Technologies, Inc. (REZI), Valuation grade: A-

12. SkyWest, Inc. (SKYW), Valuation grade: A-

13. United Parcel Service, Inc. (UPS), Valuation grade: A-

14. V2X, Inc. (VVX), Valuation grade: A-

Industrials ETFs: (XLI), (VIS), (FXR), (IYJ), (FIDU), and (RSPN)