5 Best Industrial Stocks Benefiting from the Data Center Boom

4. Eaton Corporation plc (NYSE:ETN)

Potential Upside: 17.31%

Number of Hedge Fund Holders: 87

Eaton Corporation plc (NYSE:ETN) is one of the best industrial stocks benefiting from the data center boom. On May 7, Keybanc analyst Jeffrey Hammond maintained an Overweight rating on Eaton and increased its price target to $480 from $420, according to a report by TheFly.

While acknowledging near-term margin pressure, the analyst said it is impressed by the robust underlying demand trends in the electrical sector, adding that margins are poised to improve moving forward.

Earlier on May 5, Eaton reported a 17% rise in sales in the first quarter of the year to $7.5 billion, including a 10% increase in organic sales growth. The company said its 12-month rolling average order acceleration in Electrical Americas surged 42%, driven by the momentum in data centers as well as the growth of electrical global and aerospace orders.

Out of 33 analyst ratings compiled by CNN, 70% rated Eaton Buy, while 27% rated it Hold. As of May 8, the stock has a median price target of $471, a 17.31% upside from the current price of $401.51.

Eaton Corporation plc (NYSE:ETN) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.