With a robust job market, declining inflation, and slowing interest rate hikes, investors are again searching for industrial stocks to buy. Most industrial stocks are often on the cyclical spectrum but have proved resilient. Moreover, with the market outlook being sunny for the past few weeks, many investors are taking that as a sign that we have indeed bottomed.

If you look at the bigger picture, things are looking very good. Take the price of natural gas, for example; it is down a remarkable 75% from Aug., while crude oil also drops — albeit at a slower rate. Energy is just the tip of the iceberg when we are looking at a broad decline in commodity prices, which will considerably impact inflation readings.

Naturally, there is still uncertainty about where the economy is heading in the long run. We may even see deflation, and there is no guarantee of a soft landing yet, considering inverted bond yields and leading economic indicators still indicating risk. Furthermore, if commodities slip too far, that would suggest that demand is weak, negatively influencing the stock market.

Navigating both the bullish and bearish arguments is complex, but I believe the stock market will continue a near-term uptrend until more investors take notice of tumbling inflation and commodity prices. Whatever it may be, there are still businesses that can benefit from a bullish outlook while maintaining a level of resistance to future recessionary pressures. The following three are such industrial stocks to buy as the economy turns a corner:

Lockheed Martin (LMT)

Defense companies have played a vital role in ensuring transatlantic and Asia-Pacific security through deterrence. In fact, since the Russian invasion of Ukraine, companies like Lockheed Martin (NYSE:LMT) are becoming increasingly important.

This company designs and manufactures aerospace hardware detrimental to U.S. and European security. Lockheed Martin’s cutting-edge fighter jets, such as the F-35 and F-22, transport planes, missiles, and sensors are on the top priority list of what governments worldwide are looking to buy in the next few years after the Ukraine war.

NATO as a whole is increasing its defense budget, while allies such as Japan and Australia are also boosting their budgets by a significant margin. Most of this will go to the air force, especially considering Japan, the U.K., Australia, and Taiwan are island nations. With that in mind, Lockheed Martin is set to be among the largest beneficiaries of this trend.

Furthermore, there are rumors of Ukrainian pilots already being trained on the F-16 aircraft, and I believe it is only a matter of time before Ukraine starts to receive them despite near-term hesitancy. This will only add to Lockheed Martin’s prominence. Therefore, I see Lockheed Martin as among the top industrial stocks to buy. Even if a recession hits, the company will have solid product demand and excellent future growth prospects.

Union Pacific (UNP)

Union Pacific’s (NYSE:UNP) revenue has been driven by robust demand for rail transportation services, particularly in industrial products, agricultural products, and intermodal containers. The top line grew near an 8% clip in Q4 2022, and I expect the stock to deliver great long-term returns regardless of economic conditions if you buy right now.

UNP stock is already down 23% from its peak, providing a compelling entry point with little downside risk. Furthermore, the U.S. is heavily investing in its infrastructure, and freight train operators are notable beneficiaries of the Bipartisan Infrastructure Law.

Additionally, Union Pacific is aggressively buying back shares, which gives it a significant advantage over other industrial stocks to buy. It also has a dividend yield of 2.47%, which should generate substantial returns combined with its stock price performance, especially at this entry point. In conclusion, Union Pacific is a well-established and well-regarded transportation company. Its stock has been performing well, and the company has a strong track record of delivering shareholder value. It should have significant upside potential while maintaining inelastic demand in case of a downturn.

Dominion Energy (D)

Dominion Energy (NYSE:D) is one of the largest producers and transporters of energy in the United States, with a portfolio that includes natural gas, electricity, and renewable energy sources. The company has a long history of steady growth and profitability and has been a popular choice among income-seeking investors for its consistently high dividend payouts.

Although I wouldn’t recommend an energy company when natural gas and oil prices fall, the current value of this stock looks too favorable to ignore. Its recent decline of 30% from its peak makes it the perfect time to open up a long-term position — Dominion’s 4.43% dividend yield is an additional sweetener. Sure, it’s not the flashiest of picks, but I believe its transition to renewable energy and the demographic advantage that my colleague Josh Enomoto pointed out in his article, make it a solid long-term bet among the industrial stocks to buy.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.