Most industrial subsectors remain overvalued by 17–25%, except services at 9%, with building/equipment showing strong quality.

Most industrial subsectors are currently overvalued by 17–25% compared to their 11-year averages, except the services and distribution subsector, which is moderately overvalued at 9%. The building and equipment subsector stands out for its excellent quality score, justifying some of its overvaluation. Recent improvements in value scores have been noted in both building/equipment and services/distribution. ETFs FIDU and XLI offer nearly identical fundamentals, returns, and volatility, making them interchangeable options for long-term industrial sector exposure. Investors may find value in eight stocks that are cheaper than their peers as of August.