8 Industrial Stocks With Big Upside Potential

BOSTON (TheStreet) -The industrials stock sector looks like a good place to pick up some bargains right now.

Its members are expected to post by far the strongest second-quarter earnings performance of any sector in the S&P 500, and earnings growth is one trait investors are actively seeking.

S&P has eight industrial stocks rated "strong buy," its highest rating, and the premiums on their prices to the firm's 12-month price targets range from 18% to 78%.

The industrials sector is highly diverse, ranging from aerospace and defense conglomerates to temporary employment agencies.

Industrial's expected second-quarter earnings performance, a rise of 8.7% over last year, is a standout in an otherwise bleak earnings season compared with the S&P 500 stocks, whose second-quarter earnings per share are expected to decline 1.2% year-over-year on average, according to an S&P Capital IQ review of analysts' outlooks. If that holds up, "(it) would mark the weakest EPS showing since the second quarter of 2009."