This sector should post earnings growth double the market, but the trade comes with some risks

Buying industrial stocks could be a winning strategy for investors as the sector gets a boost from strong earnings growth trends that are expected to help it outpace the broader market.

Earnings growth for the sector is expected to be 8.4 percent for 2019, the highest among all S&P 500 sectors, according to FactSet. In contrast, earnings for the S&P 500 overall are expected to increase 3.8 percent. Last year, S&P 500 earnings increased by at least 13 percent in all four quarters. GE lost more than 56 percent of its value last year as investors worried about weakness in some of its key businesses and the company's ability to possibly sell those businesses. So far this year, however, investors have cheered the leadership of new CEO Larry Culp for his transparency in the company's turnaround process. Investors also feel the stock may have bottomed after hitting a low of $6.40 per share on Dec. 11.

Other companies rounding out the top 10 industrial stocks this year are Dover Corp., Jacobs Engineering, Roper Technologies, Quanta Services, Copart, Cintas and Fortive. Subramanian added, however, that"other high-quality industries within the Industrials sector could benefit from Boeing outflows translating into inflows." She also said the industrial sector is the bank's top ranked on a tactical basis, citing"strong performance and earnings revisions."

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