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Today's Featured News Massive Breakout in Industrials: 3 Must-Watch Stocks NowWritten by Ryan Hasson. Published 12/17/2025. 
Key Points - The industrials sector is showing signs of leadership, with XLI breaking out of a lengthy consolidation and outperforming the broader market in the short term.
- XLI’s breakout above $155 suggests capital rotation into industrials may be gaining momentum into year-end.
- GE Vernova and RTX stand out as sector leaders, both posting substantial YTD gains and fresh breakouts backed by improving fundamentals and bullish sentiment.
As the year winds down, the broader market has delivered a solid performance, with the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) up approximately 16% year-to-date (YTD). But beneath the surface, leadership is quietly shifting. One notable development is the breakout in the industrials sector, a move that could signal a fresh rotation of capital and renewed outperformance through year-end and into next year. The Industrial Select Sector SPDR Fund (NYSEARCA: XLI) is now up about 19% YTD, only modestly ahead of the S&P 500 on a headline basis. Recent performance, however, tells a more compelling story: over the past month, XLI has gained 3.28% versus just 1.29% for the broader market. More importantly, the ETF has broken out of a multi-month consolidation, a technical development that often precedes sustained sector leadership if it holds. Just like Microsoft and Adobe rode the software wave in Web 1.0, RAD Intel is riding the AI software wave in 2025. Their product helps brands instantly find the right audience and message using AI – solving the #1 waste in marketing: misfired ad spend.
Already trusted by a who's-who of Fortune 1000 brands and leading global agencies – with recurring seven-figure partnerships in place. With a Nasdaq ticker reserved, $RADI, it's early – but very real. $0.85 Won't Last – Secure Your Shares Now. With momentum improving and capital beginning to rotate, here are three industrial-related names investors should keep on their radar. XLI: Sector Breakout Signals a Shift in Leadership Starting with the sector ETF itself, XLI offers broad, diversified exposure across aerospace and defense, machinery, transportation, and industrial conglomerates. The fund tracks the Industrial Select Sector Index and has roughly $25.5 billion in assets under management, a dividend yield of 1.36%, and heavy U.S. exposure. Technically, XLI had been trading in a base since July, largely between $150 and $155. That changed last week when the ETF broke decisively above $155, signaling a potential trend shift. This breakout has coincided with improving investor flows—net inflows of 4.9% over the past three months. XLI’s top holdings include several industrial heavyweights, including GE Aerospace (NYSE: GE), Caterpillar (NYSE: CAT), RTX Corp. (NYSE: RTX), Boeing (NYSE: BA), Union Pacific (NYSE: UNP), and Uber Technologies (NYSE: UBER). For investors seeking diversified exposure to a strengthening sector, XLI remains a straightforward way to express that view. For those who want to be more selective, several individual names stand out. GE Vernova: Momentum Leader Within Industrials GE Vernova Inc. (NYSE: GEV) has emerged as one of the standout performers not just within industrials but across the entire S&P 500. The stock is up roughly 107% YTD and is now the fifth-largest holding in XLI, with a 3.63% weighting. After consolidating for several months, GEV broke out to new highs following a series of bullish catalysts announced on Dec. 9. The company raised its full-year outlook, expanded its share buyback authorization, and doubled its dividend, signaling confidence in its long-term cash flow and growth trajectory. CEO Scott Strazik summed it up well, noting that GE Vernova is “in the early chapters of an incredible value creation opportunity with a stronger financial trajectory ahead.” Sentiment has followed price action. Analysts assign the stock a Moderate Buy rating, and shares are trading about 6.7% below all-time highs. From a technical perspective, holding above prior resistance near the $650 area will be key; if that level continues to act as support, GEV could remain a leadership name within both the sector and the broader market. RTX: Aerospace and Defense Strength at New Highs RTX Corp., the aerospace and defense giant, is another industrial name showing strong momentum. The stock is up more than 57% YTD and recently closed at new all-time highs, making it one of the strongest large-cap industrial names in the market. RTX is the third-largest holding in XLI and continues to benefit from robust defense spending trends and improving execution. The company reported Q3 2025 earnings on Oct. 21, delivering EPS of $1.70, well above consensus estimates of $1.41. Revenue grew 11.9% year-over-year to $22.48 billion, also topping expectations. The stock offers a dividend yield of 1.49% and carries a Moderate Buy consensus rating from analysts. Technically, RTX has just cleared prior resistance near $180. If that level holds as new support, the setup suggests potential for continued upside into the new year.
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