Is AAON a good stock to buy? We came across a bullish thesis on AAON, Inc. on r/GrowthStockInvesting by Electronic_Pea_9897. In this article, we will summarize the bulls’ thesis on AAON. AAON, Inc.’s share was trading at $129.45 as of June 23rd. AAON’s trailing and forward P/E were 91.16 and 62.11 respectively according to Yahoo Finance.
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AAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. AAON is increasingly positioned as a key beneficiary of accelerating artificial intelligence-driven data center investment, combining traditional rooftop and chiller systems with its fast-growing BASX division acquired in December 2021.
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The BASX segment has become the core growth engine, contributing 46 percent of revenue in Q1 2026 and growing 72.4 percent year over year, while total revenue reached $496.9 million ahead of consensus estimates and representing a 30 percent beat alongside earnings per share of $0.48 versus expectations near $0.30.
This performance triggered a major upward revision in FY2026 guidance, with management increasing revenue growth expectations from 18–20 percent to 40–45 percent, supported by a record backlog of $2.1 billion that expanded 107.4 percent, reflecting strong demand from data center customers. Despite earlier margin pressure and a brief revenue decline in late 2025 that weighed on sentiment, management has indicated margins are expected to gradually recover as scale benefits from BASX accelerate and operational efficiency improves across the business mix.
Strategically, AAON is increasingly differentiated versus peers such as Vertiv and Modine by its semi-custom manufacturing model, stronger balance sheet, and more attractive valuation multiples despite comparable or superior data center growth rates in its BASX segment. This positions AAON as a compelling long-term compounder in the AI thermal infrastructure space, with potential upside driven by sustained 40–45 percent growth, continued backlog expansion, and multiple re-rating opportunities as investors recognize the accelerating contribution of its high-margin BASX business.
Previously, we covered a bullish thesis on Hubbell Incorporated (HUBB) by Stock Analysis Compilation in December 2024, which highlighted the grid modernization and clean energy infrastructure demand along with acquisition-driven growth. HUBB’s stock price has appreciated by approximately 9.17% since our coverage. Electronic_Pea_9897 shares a similar view but emphasizes AAON’s AI-driven data center cooling BASX expansion.
AAON, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held AAON at the end of the first quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of AAON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAON and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
