Industrial stocks on the Stockholm Stock Exchange, despite a strong start to 2026 and the highest valuations seen since the turn of the millennium, are not in sell territory. This is according to an analysis from Dagens industri.

The newspaper notes that all companies in the so-called "aktieelvan" are trading above their average valuations over the past five years, measured as debt-adjusted market value in relation to analysts' forecasts for next year's operating results.

At the same time, the companies are showing higher and more stable margins than before. This is partly due to some companies, such as ABB, Trelleborg, and Sandvik, having streamlined their operations, but also because the group has been bolstered by Atlas Copco's 2018 spin-off, Epiroc, which is another well-managed and highly valued company.

In addition, several companies last year—including ABB, Alfa Laval, Sandvik, and SKF—raised their financial targets.

Di points out in its analysis that “the best companies are able to both grow and improve their profitability over the long term,” adding that “investors love companies with high and stable margins.” Currently, Atlas Copco and Epiroc boast the fattest margins, and as a result, their shares are valued the highest.

The conclusion is that even though the sector is at record-high valuations, the industrial companies are also “record-strong and are showing record margins,” writes Di, adding that “this is exactly as it has been and as it should be. Nothing more, nothing less.”