Amid concerns over looming trade wars and slowing global economic growth, one sector is looking poised for a breakout. On the whole, the industrial sector has been underperforming the broader market, but the founder of, Todd Gordon, believes that a number of industrials stocks—Caterpillar Inc. (CAT), 3M Co. (MMM), and Stanley Black & Decker Inc. (SWK)—are now showing attractive valuations that look set to rally over the long term. Boeing Co. (BA), the one industrial pick from Gordon that is actually outperforming the market, should continue to soar with close to 20% upside, according to CNBC.

Company  Stock YTD
Boeing  + 25.9%
Caterpillar  - 0.2%
3M  - 13.1%
Stanley Black & Decker   - 14.8%

Industrial Value Stocks

While Gordon acknowledges moderate deceleration of global growth and the possibility of a trade war, he thinks industrials present strong value opportunities. With Caterpillar, 3M and Stanley qll down on the year and underperforming both the broader market (S&P 500 +4.2% YTD) and the industrial sector index (Industrial Select Sector SPDR Fund XLI +1.2% YTD), they represent strong value buys.

Having broken out of a $105 resistance level in June of last year, Gordon sees Caterpillar moving beyond this year’s early volatility and continuing to rise to around $180, implying more than 13% upside. Both 3M and Stanley have come down a fair bit, representing a strong short-term value trade, but with longer-term growth potential as well, according to CNBC. (See also: Caterpillar Stock Sets Off Buying Signals).

Boeing Flying Higher

Everything seems to be going right for Boeing as momentum from being last year’s No. 1 performing stock in the Dow Jones Industrial Average (DJIA) is pushing it even higher this year. Gordon sees Boeing flying as high as $442. That’s good news considering the disarray the company was in only a decade ago, according to a note by Melius Research’s Carter Copeland as reported by Barron’s.

Copeland believes Boeing has since learned some valuable lessons from its past mistakes, and is better for it. The company has moved beyond just focusing on the technical, engineering and production, and is now stronger at managing business and financial aspects such as risk, cost, cash, as well discipline and incentives. Carter’s price target for Boeing is as high as $500, implying a 35% upside. (See also: Boeing Takes Flight as Trade War Fears Fade).

Having recently partnered with Safran to produce and maintain auxiliary power units (APUs), Boeing is continuing to push its strategy of more vertical integration. Consistent with its strategy, Canaccord Genuity’s Ken Herbert writes that the joint venture with Safran will help Boeing to “establish competitive intellectual property ownership by focusing on systems that interact with the airframe, or provide significant aftermarket opportunity.” However, Herbert is less optimistic, fearing the company could push vertical integration too far, and thus sets his price target at $350, about 5% below where the stock is currently trading.

Cowen & Co.’s Cai von Rumohr, on the other hand, thinks Boeing’s cash flows will move higher, pushed up by several factors including a favorable demand cycle and continued strength in commercial productivity. The higher cash flows could lead to a dividend per share of $10.50 by 2021, up from the current $6.84 a share, according to a separate article from Barron’s.