10 Best Electrical Equipment Stocks to Buy Now

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1. Vertiv Holdings Co (NYSE:VRT)

Number of Hedge Fund Holders: 92

Vertiv Holdings Co (NYSE:VRT) is a leading player in the broader electrical equipment sector, and it specializes in critical infrastructure solutions for data centers, communication networks, and industrial and commercial environments. Bank of America Securities analyst Andrew Obin reiterated a “Buy” rating on the company’s stock, setting a price objective of $135.00. The rating is backed by a combination of factors demonstrating Vertiv Holdings Co (NYSE:VRT)’s strong performance and growth potential. Vertiv Holdings Co (NYSE:VRT) saw a significant reacceleration in orders’ growth, fueling investor confidence. Notably, Q1 2025 orders rose ~13% as compared to Q1 2024 and increased ~21% sequentially from Q4 2024.

This growth in orders, despite the tough comparisons from the previous year, demonstrates a strong demand for the company’s offerings, mainly in the data center sector, says the analyst. Vertiv Holdings Co (NYSE:VRT)’s management maintained its 2025 adjusted EPS guidance, effectively mitigating the negative impacts from tariffs. The company expects adjusted diluted EPS in the range of $3.45 – $3.65 in FY 2025. Its ability to adjust pricing and reprice portions of the backlog can support the margin improvements. The analyst believes that sustained demand for data centers and its strategic positioning in the market support the favourable outlook. Overall, the growth in the electrical equipment market, mainly due to a surge in AI and data center infrastructure demands, is expected to help the company.

Hardman Johnston Global Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“From a sector standpoint, the main drivers of the portfolio’s outperformance during the fourth quarter were Industrials and Materials. Within Industrials, Howmet Aerospace, Inc. and Vertiv Holdings Co (NYSE:VRT) were the largest contributors to outperformance. Vertiv has been a stellar performer for the past year and beyond. The global leader in data center thermal and electrical equipment continued to execute on its record backlog, with strong order flow largely related to AI-driven data center demand. Data center operators and hyperscalers are partnering with the company to develop next generation designs to optimize power and thermal efficiency. Vertiv’s global service network is uniquely positioned to help clients design and maintain these important data centers.”

While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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