The TSX industrials sector has outperformed the index at large through the past year and this strength is likely to continue for some stocks, one analyst says. 
 
Speaking with BNN Bloomberg’s Amber Kanwar on Wednesday, Maxim Sytchev, managing director of industrial products at National Bank of Canada, said he is looking for stocks within the sector with valuations that make sense. 
 
"(A) dynamic that I think we have to be mindful of is stretched valuations,” he said. 
 
“When I look at my space right now (industrial sector) — it’s much more around balancing that dynamic and looking at more idiosyncratic opportunities versus just ‘buy industrials because China is doing better’ — which we don’t think it is actually,” he said. 
 
Sytchev recommended RB Global Inc. (RBA), Ag Growth International Inc. (AFN) and Stantec Inc. (STN) as hit top three stock picks in the industrials sector.
 
He, his family, his firm and his investment banking clients do not own any of the stocks mentioned above. 
 
Check out the full video at the top of the article to learn more.