Trex, Fortive, Viavi Solutions Flagged as Industrials to Avoid on Stretched Valuations

Three industrial stocks—Trex Company (NYSE:TREX), Fortive (NYSE:FTV), and Viavi Solutions (NASDAQ:VIAV)—are facing caution signals from analysts citing elevated valuations, even as the sector outperforms the broader market. The industrial sector has returned 22% over the six months through late May 2026, surpassing the S&P 500 by 11.7 percentage points. However, the trio trades at lofty forward price-to-earnings multiples: Trex at 24.9x, Fortive at 19.7x, and Viavi at 43.3x. Trex, a maker of composite decking, saw its shares at $42.13, while Fortive and Viavi traded at $59.28 and $48.77, respectively. Analysts suggest these stretched ratios leave the stocks vulnerable as the economic cycle matures, with better opportunities emerging elsewhere. The warning comes despite the group’s recent rallies, highlighting a potential rotation away from expensive names.