In this article, we will discuss the 10 Best Electrical Equipment Stocks to Buy Now.
The global electrical equipment market size was pegged at US$1,513.22 billion in 2024, and the market is expected to grow from US$1,660.20 billion in 2025 to US$3,326.86 billion by 2032, according to Fortune Business Insights. The expansion in IT, manufacturing, healthcare, and telecommunications continues to increase the requirement for electrical machinery and equipment. Furthermore, increased trade and globalization result in an exchange of electric equipment, leading to enhanced market access and higher sales. Also, urbanization increases demand for electrical appliances in residential, industrial, and commercial applications.
The broader US electric equipment industry continues to play an important role in both the EV and data center markets. Growth in EVs helps increase demand for high-voltage infrastructure, charging networks, and grid upgrades. Battery manufacturing and assembly plants need advanced electrical systems, which fuel demand for industrial power solutions. Since data centers demand high power and reliability, they also need a strong electrical infrastructure.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Key Trends Likely to Shape the Electrical Equipment Industry
The regulatory framework for energy efficiency and the uptake of renewable energy is expected to intensify the market trend, opines Fortune Business Insights. The EV market is expected to be supported by the creation of a regulatory framework for energy-efficient motors possessing long life expectancies. Notably, electrical equipment happens to be the primary element fulfilling the criteria, including high-efficiency ratio, product purity, low energy costs, reliability, and sustainability for carbon emission-free vehicles. Fortune Business Insights believes that increased investment in EVs and advancements in battery technology are some of the global EV market trends. Significant momentum in battery technology continues to ramp up the EV market growth, and while global efforts remain focused on the improvement of range and reduction in charging times.
Furthermore, innovations including solid-state batteries and enhanced lithium-ion designs are witnessing traction, which can result in greater efficiency and reduced costs. Such advancements remain important for leading industry players, allowing them to meet increased consumer demand for reliable and long-range EVs. These demand trends are expected to significantly help the broader electrical equipment market in 2025. EV chargers need significant electrical hardware, including circuit breakers, transformers, control systems and power distribution units. Also, widespread EV adoption can pressurize the local electric grids, necessitating upgrades. This can benefit grid automation, smart grid technologies and load balancing.
Fortune Business Insights highlighted that hybrid and multi-cloud deployments continue to emerge as a critical market trend in the AI Data Center market. As and when AI models evolve, there is a need for varying computing, storage and networking requirements. Such favorable demand trends can help the broader electrical equipment market as AI centers require precise and reliable power distribution. This can help fuel growth in power monitoring and control systems, low and medium voltage electrical panels, among others.
Amidst such trends and factors, let us now have a look at the 10 Best Electrical Equipment Stocks to Buy Now.
Copyright: kadmy / 123RF Stock Photo
Our Methodology
To list the 10 Best Electrical Equipment Stocks to Buy Now, we used a Finviz screener to shortlist the companies catering to the broader electrical equipment industry. After getting an extended list of 20-25 stocks, we chose the ones that are popular among hedge funds. Finally, the stocks were arranged in ascending order of their hedge fund sentiment, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Electrical Equipment Stocks to Buy Now
10. Advanced Energy Industries, Inc. (NASDAQ:AEIS)
Number of Hedge Fund Holders: 18
Advanced Energy Industries, Inc. (NASDAQ:AEIS) is a renowned company in the electrical equipment industry, specializing in precision power conversion, control, and measurement solutions utilized in several industries. Analyst Duksan Jang of Bank of America Securities reiterated a “Buy” rating on the company’s stock, increasing its price objective to $118.00. The analyst’s rating is backed by a combination of factors, which include Advanced Energy Industries, Inc. (NASDAQ:AEIS)’s resilience to macroeconomic challenges as well as robust sales and earnings growth expectations. Its Q1 2025 sales surpassed expectations, while the outlook for the upcoming quarter is robust, thanks to the demand in the semiconductor and data center sectors.
Advanced Energy Industries, Inc. (NASDAQ:AEIS)’s revenue came in at $404.6 million in Q1 2025 as compared to $415.4 million in Q4 2024 and $327.5 million in Q1 2024. For Q2 2025, it expects revenue of $420 million (+/- $20 million). Advanced Energy Industries, Inc. (NASDAQ:AEIS) is expected to benefit from the roll-out of new product lines, which can improve margins and market share through 2026, says the analyst. Despite the worries, Jang believes that the company’s strategic positioning and operational efficiencies support the positive outlook. It is executing its gross margin improvement plan and continues to extend its market leadership with new products. Overall, the company remains well-placed to reap the benefits from expansion of electrical equipment market, mainly due to its leadership in semiconductor power solutions.
SouthernSun Asset Management, LLC, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“We initiated a position in Advanced Energy Industries, Inc. (NASDAQ:AEIS) during the quarter. AEIS designs and manufactures highly engineered power conversion, measurement and control solutions. The company’s power conversion products convert raw electricity from the utility grid into a precise, useable form of power for a given application. AEIS works in close collaboration with equipment manufacturers to design highly customized solutions, and approximately 70% of revenue comes from sole-sourced designs.
We began our research on this business, and this space more broadly, in 2021 and have learned a lot about the eco[1]systems that AEIS supports. You may recall that we were owners of CCMP in the post-COVID period before that business was acquired in 2022 by ENTG. Years before that, we were owners of Newport Corp, which was acquired by MKSI in 2016. Our time in and around the semi-conductor market, as well as decades of investing in industrial and medical markets, gave us a keen interest in learning more about AEIS, as we had come across the name but hadn’t done significant research. We have spent the past 2-3 years filling our files, as we have studied this business and it’s value chain more intensively…” (Click here to read the full text)
9. Enovix Corporation (NASDAQ:ENVX)
Number of Hedge Fund Holders: 21
Enovix Corporation (NASDAQ:ENVX) remains an emerging player in the broader electrical equipment industry as it specializes in advanced lithium-ion battery technology. The company’s products are created for high-performance applications in wearables, consumer electronics, IoT devices, and military equipment. Analyst George Gianarikas of Canaccord Genuity maintained a “Buy” rating on the company’s stock, retaining the price objective of $20.00. The analyst’s rating is backed by a combination of factors that demonstrate Enovix Corporation (NASDAQ:ENVX)’s growth potential and innovation.
Furthermore, Enovix Corporation (NASDAQ:ENVX) continues to expand its market interest beyond smartphones in a bid to include defense, smart glasses, and handheld computers, says the analyst. Also, its unique architecture offers a significant performance edge over competitors, mainly in the energy density enhancements. Given the potential product launches as well as manufacturing scale-up on the horizon, Enovix Corporation (NASDAQ:ENVX) is well-positioned for strong growth, says Gianarikas. The company announced the acquisition of battery cell manufacturing assets from SolarEdge, located in South Korea. This will expand Enovix Corporation (NASDAQ:ENVX)’s manufacturing footprint and help it address increased demand in the defense industry. Overall, the company remains well-placed to benefit from an expansion of the electrical equipment industry, mainly via its innovative high-energy-density battery technology.
8. EnerSys (NYSE:ENS)
Number of Hedge Fund Holders: 30
EnerSys (NYSE:ENS) is a critical player in the electrical equipment business, since it is engaged in designing, manufacturing, and distributing energy storage systems and power-related products. These are important components of electrical and power infrastructure. The company anticipates Q4 2025 to be one of its strongest quarters on record, thanks to the improvement in order rates and favorable demand trends throughout its core end markets. EnerSys (NYSE:ENS) expects continued momentum in demand for reliable power solutions, aided by accelerating trends in electrification, data-driven infrastructure, and sustainability. The company remains well-positioned to capitalize on such opportunities.
In Q4 2025, EnerSys (NYSE:ENS) expects net sales in the range of $960 million – $1,000 million, and adjusted diluted EPS of between $2.75 – $2.85. In Q3 2025, the company delivered net sales of $906 million, reflecting a rise of 5% YoY. This was fueled by robust A&D demand, bolstered by contributions from Bren-Tronics, and an improvement in the US Communications market. Overall, the growth in the electrical equipment industry, aided by increased demand for energy storage, EV infrastructure, data centers, and renewable power, continues to expand the market for EnerSys (NYSE:ENS)’s core battery and energy systems products.
7. Hayward Holdings, Inc. (NYSE:HAYW)
Number of Hedge Fund Holders: 31
Hayward Holdings, Inc. (NYSE:HAYW) remains a key player in the broader electrical equipment industry, which specializes in manufacturing, designing, and marketing of pool equipment as well as associated automation systems. The company is well-placed to reap the benefits of growth opportunities in the electrical equipment industry, mainly in the pool and outdoor living sectors. The elevated demand trends for energy-efficient and connected technologies remain in line with Hayward Holdings, Inc. (NYSE:HAYW)’s product offerings, like its SmartPadTM platform and energy-efficient pool equipment. For FY 2025, the company expects net sales of ~$1.060 billion – $1.100 billion and adjusted EBITDA of $280 million – $290 million.
The installed base of pools witnesses a rise every year, offering growth opportunities, and Hayward Holdings, Inc. (NYSE:HAYW) benefits from supportive secular demand trends in outdoor living, sunbelt migration, and technology adoption. For Q1 2025, the company’s net sales rose by 8% to $228.8 million. This rise was due to volume growth, favorable impact from acquisitions, and positive net price.
Fiduciary Management Inc. (FMI), an independent money management firm, released its Q4 2024 investor letter. Here is what the fund said:
“Hayward Holdings, Inc. (NYSE:HAYW) is a pool equipment manufacturer that primarily serves the residential pool market. Their products include pumps, automation and sanitization equipment, pool heaters, filters, lighting and water features, and cleaners. The company estimates that 50% of its business comes from repair/replacement sales which provides a stable revenue base. Pool service professionals recommend and install products for end customers. They care about a host of factors more than price when selecting equipment, as they’re not ultimately paying for the product, which creates barriers to entry and strong pricing power for incumbent players. The industry has historically raised price to at the very least offset cost inflation, and in many years has priced above cost inflation. We believe a good time to buy the business is when discretionary spending is depressed, as is the case today. New pool construction is at its lowest point since 2014 and remodel activity is subdued. The shares appear to be a good relative value in an expensive market. We initiated a 1.5% position in December 2024.”
6. Atkore Inc. (NYSE:ATKR)
Number of Hedge Fund Holders: 32
Atkore Inc. (NYSE:ATKR) is engaged in the manufacturing and selling of electrical, mechanical, safety, and infrastructure products and solutions. For Q2 2025, the company expects net sales of ~$695 million – $705 million and adjusted EBITDA of ~$115 million – $118 million. Atkore Inc. (NYSE:ATKR)’s preliminary Q2 2025 estimates demonstrate mid-single-digit volume growth and better-than-expected manufacturing productivity. The Safety & Infrastructure segment results include the favorable benefits associated with construction services projects.
Atkore Inc. (NYSE:ATKR) remains well-placed to benefit from strong prospects in electrical equipment industry, mainly via its involvement in critical infrastructure projects and adoption of digital technologies. Its product portfolio consists of conduit, metal framing, and cable management systems. Atkore Inc. (NYSE:ATKR)’s infrastructure portfolio is expected to be aided by EV charging buildout, strong growth prospects in data centers (due to AI and 5G), and grid modernization efforts. Such trends paint a favourable picture for the demand of the company’s products, spanning from electrical conduits to mechanical tubing.
River Road Asset Management, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:
“The holding with the lowest contribution to active return in the portfolio during Q3 was Atkore Inc. (NYSE:ATKR), a branded manufacturer of products that protect and frame electric circuitry (including PVC conduit). ATKR delivered worse-than-expected Q3 2024 results and lowered 2024 EBITDA guidance by -11% due to higher amounts of imported steel conduit entering the market and a slower summer construction season. Steel conduit imports from Mexico have risen sharply over the past year in violation of existing trade agreements. ATKR has lost market share and has cut pricing in steel conduit, which is roughly 20% of total ATKR revenues. A Donald Trump administration is likely needed for effective trade enforcement. Weakness in residential, construction, and utility end markets led to lower-than-expected volumes and pricing. We believe ATKR’s balance sheet remains in great shape with net leverage of only 0.6x and year-to-date free cash flow generation of $245MM has largely been used to fund $281MM of year-to-date share repurchases. We took no action on the position during the quarter.”
5. Hubbell Incorporated (NYSE:HUBB)
Number of Hedge Fund Holders: 38
Hubbell Incorporated (NYSE:HUBB) is engaged in designing, manufacturing, and selling electrical and utility solutions. The company’s Q1 2025 results were aided by continued robust operating performance in its Electrical Solutions segment and a return to organic growth in Grid Infrastructure. This was offset by expected softness in Grid Automation and the impact of increased cost inflation. The organic growth of 5% in electrical solutions was supported by strength in datacenter markets and continued execution on its segment unification strategy to fuel outgrowth via innovation and commercial alignment. Hubbell Incorporated (NYSE:HUBB) remains well-positioned in attractive end markets with long-term growth tailwinds stemming from grid modernization and electrification.
Overall, expansion of the electrical equipment market, mainly the strong demand in utility solutions and expansion of industrial and data center markets, is expected to fuel growth for Hubbell Incorporated (NYSE:HUBB). The adjusted operating income came in at $84 million, or 16.5% of net sales, in Q1 2025 as compared to $80 million, or 15.8% of net sales, in the same period of the prior year. Hubbell Incorporated (NYSE:HUBB) highlighted that changes in operating income and operating margin were driven mainly because of volume growth, portfolio transformation and mix, and favorable price realization and productivity. This was partially offset by raw material cost increases and tariffs.
4. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 42
Bloom Energy Corporation (NYSE:BE) is a critical player in the electrical equipment industry, specializing in advanced fuel cell technology for on-site power generation. Andrew Percoco, an analyst from Morgan Stanley, maintained a “Buy” rating on the company’s stock, and the associated price target remained same at $35.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s growth potential. Despite some concerns, the analyst is optimistic about the demand for Bloom Energy Corporation (NYSE:BE)’s fuel cell technology, mainly in serving data centers. Notably, this optimism is aided by sustained demand for GPUs and AI investments, which have not slowed down significantly, says the analyst. Elsewhere, BTIG analysts reiterated a “Buy” rating and maintained the price objective of $30.
Bloom Energy Corporation (NYSE:BE)’s resilience in the face of tariff impacts is partly because of its US-centric supply chain. The majority of the company’s material spend is in custom-made components that are unique to the company, giving it control over pricing and sourcing. Furthermore, the company has exhibited confidence in finding cost reductions in a bid to neutralize the impact of tariffs. Overall, the expansion of the electrical equipment industry, mainly because of higher demand for clean and reliable energy solutions, continues to positively affect Bloom Energy Corporation (NYSE:BE)’s growth momentum.
Columbia Threadneedle Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The fund held an out-of-benchmark position in Bloom Energy Corporation (NYSE:BE). The company manufactures and markets solid oxide fuel cells that produce electricity and can provide an alternative source of energy compared to traditional suppliers. Our thesis on Bloom has been that they have the necessary technology to provide a solution to the electricity shortage that overhangs new AI data center builds in the U.S. and around the world. Bloom’s fuel cells plug into a natural gas line that can fit on a data center’s campus without taking up too much real estate, and the company has informed customers they can ramp up power delivery quicker than other energy providers. Bloom partnered with two new clients during the fourth quarter. The first is a continued partnership with existing client SK Eternix in South Korea. The second deal Bloom announced was a partnership with American Electric Power to provide power to their data centers.”
3. Acuity Inc. (NYSE:AYI)
Number of Hedge Fund Holders: 47
Acuity Inc. (NYSE:AYI) offers lighting, lighting controls, building management system, and location-aware applications. Morgan Stanley analyst Christopher Snyder maintained a “Buy” rating on the company’s stock, setting a price objective of $370.00. The analyst’s rating is backed by numerous compelling factors, placing the company favorably in the market. Acuity Inc. (NYSE:AYI) posted adjusted diluted EPS of $3.73 in Q2 2025, reflecting an increase of $0.35 or 10.4% from $3.38 in the prior year, highlighting the strong execution capabilities. Additionally, Acuity Inc. (NYSE:AYI) achieved an adjusted gross margin of 47.5%, which surpassed Morgan Stanley’s estimate and the consensus, demonstrating strong operational efficiency and the favourable impact of the QSC acquisition.
Furthermore, Acuity Inc. (NYSE:AYI) tends to benefit from its strategic positioning as a USMCA-compliant producer in Mexico, offering it a competitive edge over Asian competitors witnessing tariff pressures, says the Morgan Stanley analyst. This advantage can help the company contribute to its relative outperformance. Overall, Acuity Inc. (NYSE:AYI) remains well-placed to benefit from the expansion of the electrical equipment market with the help of its diversified portfolio, including lighting solutions and intelligent building technologies.
2. nVent Electric plc (NYSE:NVT)
Number of Hedge Fund Holders: 48
nVent Electric plc (NYSE:NVT) is engaged in designing, manufacturing, marketing, installing, and servicing electrical connection and protection solutions. The company’s stock has seen a strong run-up of more than 30% over the past month. nVent Electric plc (NYSE:NVT) raised FY 2025 sales and EPS guidance, with reported sales growth expected to be 19% – 21% as compared to the prior guidance of 8% – 10%. This updated guidance range includes the acquisition of the Avail Electrical Products Group. Furthermore, it expects FY 2025 EPS of $2.48 – $2.58 on a GAAP basis and adjusted EPS of $3.03 – $3.13 as compared to prior guidance of $2.45 – $2.55 on a GAAP basis and adjusted EPS of $2.98 – $3.08.
Seaport Global Securities analyst Scott Graham upped the company’s stock from “Neutral” to “Buy.” This upgrade exhibits a favourable outlook on nVent Electric plc (NYSE:NVT)’s prospects despite worries related to reduced spending by data centers. The analyst noted the expected robust demand for compute and storage from data centers, hinting that even with potential reductions in AI demand projections, the impact can be less than feared. Overall, nVent Electric plc (NYSE:NVT) remains well-placed to reap the benefits of the electrical equipment market, mainly via the strategic emphasis on high-demand sectors, including data centers and utilities.
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.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
