In this article, we will discuss the 7 Best Electrical Equipment Stocks to Buy.

The infrastructure powering the global economy’s next chapter, from grid modernization to industrial automation, runs through electrical equipment. Electrical equipment stocks are drawing sustained capital from utilities, industrial conglomerates, and infrastructure-focused funds, positioning ahead of what could be the largest wave of grid investment in decades. Unlike speculative growth trades, this is not a story of unproven technology. It’s a foundational industrial theme where decades-old manufacturing expertise is being reshaped by electrification, automation, and renewable integration, rewarding companies that can scale production to meet surging demand.

Data from Market Research Future estimated the electrical equipment and services market at USD 1,849.74 billion in 2024, projected to grow to USD 2,803.33 billion by 2035, exhibiting a CAGR of 3.85% during the forecast period, a steadier, more mature growth curve reflecting the sector’s massive installed base. In another analysis by Fortune Business Insights, the global electrical equipment market size is projected to grow from $1,822.88 billion in 2026 to $4,151.57 billion by 2034, at a CAGR of 10.80% during the forecast period, a considerably steeper trajectory driven by accelerating demand for smart grid technology and industrial automation. Industry coverage points to escalating momentum from grid modernization mandates and renewable energy buildouts as utilities and governments race to secure reliable, resilient power infrastructure.

Electrical equipment has necessity and inevitability, a foundational requirement for every industrial, commercial, and residential system that no other category can substitute for. For investors seeking durable exposure to the physical backbone of electrification and industrial modernization, electrical equipment stocks may be one of the more dependable long-term themes in the market today.

With this context in mind, here are the best electrical equipment stocks to buy.

Our Methodology

We used stock screeners to identify the electrical equipment stocks with a short percentage of shares outstanding, less than 4%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding.

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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

7 Best Electrical Equipment Stocks to Buy

7. GE Vernova Inc. (NYSE:GEV)

Short Percentage of Shares Outstanding: 3.92%

On June 16, Bernstein initiated coverage of GE Vernova Inc. (NYSE:GEV) with an Outperform rating and a $1,206 price target. The firm believes the company is uniquely positioned to benefit from powerful global trends, including energy security, electrification, decarbonization, and economic development. Bernstein expects GE Vernova to evolve into a comprehensive provider of power generation, grid infrastructure, and electrification solutions, enabling it to play a central role in meeting growing worldwide electricity demand. The analyst noted that increasing investment in power infrastructure should provide a significant long-term growth runway for the company.

Earlier, on June 11, Jefferies lowered its price target on GE Vernova Inc. (NYSE:GEV) to $1,210 from $1,350 while maintaining a Buy rating. Although the firm acknowledged investor concerns surrounding behind-the-meter power solutions and their potential impact on traditional grid investments, it argued that these concerns are overstated relative to available market data. Jefferies expects the company’s second-quarter order activity and commentary regarding future demand to reinforce confidence in the long-term strength of the gas turbine market. The firm believes GE Vernova remains well-positioned to maintain its market leadership through the next decade despite recent share price volatility.

GE Vernova Inc. (NYSE:GEV) is headquartered in Cambridge, Massachusetts, and became an independent publicly traded company in 2024 following its separation from General Electric. The company operates across the Power, Wind, and Electrification segments, providing equipment and services that generate, transfer, convert, and store electricity for utilities, industrial customers, and infrastructure projects around the world.

GE Vernova’s leadership across critical energy markets, strong exposure to electrification and grid modernization trends, and continued analyst confidence support an attractive long-term investment outlook as global power demand accelerates.

6. Vicor Corporation (NASDAQ:VICR)

Short Percentage of Shares Outstanding: 3.26%

On June 22, Craig-Hallum raised its price target on Vicor Corporation (NASDAQ:VICR) to $450 from $400 while maintaining a Buy rating on the shares. The firm cited a highly encouraging annual shareholder meeting, which reinforced its confidence in the company’s long-term growth prospects. According to Craig-Hallum, the opportunity ahead for Vicor extends beyond even its recently increased financial targets, reflecting growing optimism regarding demand for the company’s advanced power solutions. The analyst believes Vicor remains well-positioned to capitalize on the increasing power requirements of next-generation computing systems, artificial intelligence infrastructure, and other high-performance electronic applications.

Earlier, on May 26, Chief Executive Officer Dr. Patrizio Vinciarelli commented on industry developments, noting that enforcement of intellectual property rights is strengthening through exclusion orders that prevent the importation of systems incorporating infringing technologies. He emphasized that Vicor Corporation (NASDAQ:VICR)’s licensing framework allows original equipment manufacturers and hyperscale customers to access the company’s patented power innovations through multiple supply sources while preserving the value of its intellectual property portfolio. Management believes this approach enhances supply chain flexibility for customers while reinforcing Vicor’s competitive advantages in advanced power conversion technologies.

Founded in 1981 and headquartered in Andover, Massachusetts, Vicor Corporation (NASDAQ:VICR) designs and manufactures high-density modular power components and systems that efficiently convert, regulate, and manage electricity. Its patented technologies are used across data centers, aerospace, defense, industrial, and automotive applications, where reliable and efficient power delivery is critical to system performance.

Vicor’s strong intellectual property position, growing exposure to AI-driven infrastructure spending, and favorable analyst outlook support its potential to benefit from rising demand for advanced power management solutions across multiple high-growth industries.

5. Valmont Industries, Inc. (NYSE:VMI)

Short Percentage of Shares Outstanding: 3.14%

On June 17, JP Morgan analyst Tomohiko Sano raised the firm’s price target on Valmont Industries, Inc. (NYSE:VMI) to $600 from $520 while maintaining an Overweight rating following the company’s investor day. The firm expressed confidence in Valmont’s 2029 financial targets of $5.4 billion in sales and $35 in adjusted earnings per share. JPMorgan believes the company’s utility and coatings businesses will be the primary drivers of long-term growth, while a recovery in the agriculture market could provide additional upside to earnings estimates. The firm also noted that Valmont’s operational initiatives provide meaningful opportunities to improve margins as the company works toward its 17% operating income target.

On May 28, Oppenheimer initiated coverage of Valmont Industries, Inc. (NYSE:VMI) with an Outperform rating and a $600 price target. The firm believes the company is well-positioned to benefit from continued investment in utility transmission and distribution infrastructure, while noting that prolonged weakness in agricultural markets is now largely reflected in current expectations. Oppenheimer expects Valmont’s exposure to infrastructure modernization to support its long-term growth profile.

Founded in 1946 and headquartered in Omaha, Nebraska, Valmont Industries, Inc. (NYSE:VMI) designs and manufactures critical infrastructure and mechanized irrigation equipment. It supports power grid modernization by manufacturing heavy-duty utility support structures, specifically supplying the engineered steel and tubular framework necessary to support electrical transformers and high-voltage transmission lines.

Valmont is well-positioned to capitalize on long-term infrastructure investment trends, particularly in utility transmission and grid modernization, while its operational initiatives provide additional opportunities to enhance profitability. Supported by favorable analyst sentiment and ambitious long-term financial targets, the company offers an attractive investment opportunity with multiple avenues for sustained earnings growth.

4. Eaton Corporation plc (NYSE:ETN)

Short Percentage of Shares Outstanding: 2.43%

On July 8, Eaton Corporation plc (NYSE:ETN) announced the appointment of Dan Simpson as President of Global Energy Infrastructure Solutions. In his new role, Simpson will lead Eaton’s global GEIS business and report directly to the company’s Electrical Sector leadership team. Simpson joins Eaton after serving as Chief Executive Officer of The Shaw Group and brings significant experience in infrastructure and industrial markets. The appointment reflects Eaton’s ongoing efforts to strengthen leadership across key growth segments as demand for energy infrastructure, electrification, and power management solutions continues to expand worldwide.

Earlier, on June 11, Eaton Corporation plc (NYSE:ETN) announced a definitive agreement to combine its Mobility Group with Dana Incorporated through a Reverse Morris Trust transaction, creating a company valued at more than $10 billion. Management expects the separation to be immediately accretive to Eaton’s organic growth rate and operating margins while enabling greater strategic focus on its core electrical and industrial businesses. Under the transaction terms, Eaton shareholders will own at least 50.1% of the combined entity, while Eaton will receive approximately $1.1 billion in cash that can be deployed toward debt reduction and other capital allocation priorities. The company believes the transaction will unlock shareholder value while simplifying its portfolio and enhancing its growth profile.

Founded in 1911 and legally headquartered in Dublin, Ireland, with major operational headquarters in Beachwood, Ohio, Eaton Corporation plc (NYSE:ETN) is a global intelligent power management company. The company develops energy-efficient electrical, hydraulic, and mechanical technologies that help customers manage power more safely, efficiently, and sustainably across industrial, utility, commercial, and residential markets.

Eaton’s continued portfolio transformation, leadership investments, and increasing focus on high-growth electrification and energy infrastructure markets position the company to benefit from long-term global demand for advanced power management solutions.

3. CTS Corporation (NYSE:CTS)

Short Percentage of Shares Outstanding: 2.17% 

On June 25, CTS Corporation (NYSE:CTS) announced that its board of directors has promoted current Chief Operating Officer Pratik Trivedi to the roles of Chief Executive Officer and President, effective July 6. Trivedi will succeed Kieran O’Sullivan, who will remain on the board of directors and transition to the role of Executive Chair after serving as CEO for 14 years. Trivedi will also join the company’s board upon the effective date of his appointment, marking a planned leadership transition designed to support continuity and future growth.

On April 29, CTS Corporation (NYSE:CTS) narrowed its fiscal 2026 revenue guidance to a range of $560 million to $580 million from its previous outlook of $550 million to $580 million. The revised guidance reflects increased confidence in the company’s revenue expectations while maintaining its upper-end forecast.

Founded in 1896 and headquartered in Lisle, Illinois, CTS Corporation (NYSE:CTS) designs and manufactures advanced sensors, actuators, and electronic components. It supplies essential technologies that regulate, connect, and power hardware for global OEMs in the automotive, aerospace, medical, and industrial sectors.

CTS is reinforcing its long-term growth strategy through a well-planned leadership transition while demonstrating greater confidence in its revenue outlook for fiscal 2026. Supported by its diversified portfolio of mission-critical electronic components and exposure to attractive industrial end markets, the company is well-positioned to deliver sustainable growth over the long term.

2. Emerson Electric Co. (NYSE:EMR)

Short Percentage of Shares Outstanding: 2.16% 

On June 30, Deutsche Bank placed a “Catalyst Call: Sell” on shares of Emerson Electric Co. (NYSE:EMR) as a short-term investment idea. The firm stated that continued constraints on ship traffic through the Strait of Hormuz are likely to create headwinds for Emerson’s financial results through at least the third quarter, reflecting the potential impact of ongoing supply chain disruptions on the company’s near-term performance.

On June 9, Bernstein initiated coverage of Emerson Electric Co. (NYSE:EMR) with an Outperform rating and a $175 price target. The firm believes the company is well-positioned to execute on its long-term strategic framework, noting that Emerson’s software business faces limited disruption risk from artificial intelligence. Bernstein also emphasized that the majority of the company’s portfolio consists of products and solutions that are not easily displaced, supporting confidence in its long-term competitive positioning.

Founded in 1890 and headquartered in St. Louis, Missouri, Emerson Electric Co. (NYSE:EMR) is a global technology and engineering company that provides automation solutions. It manufactures essential hardware, sensors, valves, and software that power, control, and automate complex manufacturing and industrial operations.

While Emerson may face temporary macroeconomic and supply chain headwinds, its strong competitive position in industrial automation and favorable long-term industry fundamentals continue to support its growth outlook. Backed by resilient end-market demand and confidence in its strategic execution, the company remains well-positioned to create long-term value for shareholders.

1. Bel Fuse Inc. (NASDAQ:BELFA)

Short Percentage of Shares Outstanding: 0.70% 

On June 10, JPMorgan initiated coverage of Bel Fuse Inc. (NASDAQ:BELFA) with an Overweight rating and a $370 price target, implying approximately 30% upside from current share levels. The firm highlighted the company’s strong position in powering, protecting, and connecting electronic circuits across aerospace and defense, networking and data centers, telecommunications, and industrial end markets. JPMorgan believes Bel Fuse’s multi-year strategic transformation, centered on greater accountability, pricing discipline, and improved operational execution, will support a durable competitive position. The firm also forecasts revenue growth of 17% in 2026 and 8% in 2027.

On May 12, Bel Fuse Inc. (NASDAQ:BELFA) announced the commencement of an underwritten public offering of 1.3 million shares of its Class B common stock. Citigroup, BofA Securities, and Wells Fargo Securities are serving as the joint book-running managers for the proposed offering.

Founded in 1949 and headquartered in West Orange, New Jersey, Bel Fuse Inc. (NASDAQ:BELFA) designs, manufactures, and markets products that power, protect, and connect electronic circuits. It produces critical hardware like power supplies, circuit protectors, and connectors used by major original equipment manufacturers.

Bel Fuse is well-positioned to benefit from growing demand across high-value markets such as data centers, aerospace, and industrial electronics, supported by its broad portfolio of mission-critical components. Combined with its operational improvements, disciplined strategic execution, and favorable long-term growth outlook, the company offers an attractive opportunity for sustained earnings and revenue expansion.

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