How to Invest in the Future of Electricity: 4 Stocks

By 2030, electricity demand from data centers is on track to triple. Yeah, triple. And that grid that carries the power needs hundreds of billions of new investment just to play catchup, right? But this goes way beyond AI. We're talking about electric vehicles. We're talking about reshort factories. The whole electrification of the economy, it all runs through one thing, the power grid. And right now, that antiquated grid is the bottleneck. So, the money is pouring in, but far too much of it is crowning the same well-known stocks like Quantis and GE uh Vernovas. But let's be real, the best investment opportunities going forward are rarely in the stocks that are already bit up. Instead, it's under the radar names the crowd is too often ignoring. And today, I'm going to share four of those hidden gems with you. And I'm saving the most complete pick for last. So, be sure to stick around. Now, we will start the party off with IEES Holdings with the symbol of IEESC. Now, IEES designs and installs the electrical and power systems that go inside data centers, factories, and buildings all across the country. Now, if electricity is the story, IEES, typically the company physically wiring it all into place. And before we go any further with IEES, I should tell you who I am. I'm Steve Rightmeister, but everyone calls me Ry. I'm a partner at Wall Streetzen.com, where quant rating system analyzes a wide array of data points to separate the best stocks from all the noise and nonsense. And if you find this kind of uh video breakdown useful, then do me a quick favor and tap that like button. It tells the algorithm to show you more videos like this in the future. Now, here is why IEES an exciting investment right now. The data center boom needs electricians and IEES has more work than it can handle. They are sitting on a record backlog of 4.5 billion already signed and waiting to be done. Now, to put that into perspective, that backlog is nearly double the level from a year ago. Yeah, double. That backlog has fostered tremendous earnings growth. In fact, the most recent quarter, they powered up 70% earnings growth year-over-year. Indeed, this blew away the Street Estimate. Now, even with that exciting backdrop in place, here comes one of the best parts of this investment story. Given the selloff in many AI associated names of late, we can now snap up shares for about 35% off their highs. One of the hallmarks of a hidden gem is that Wall Street is looking the other way. Right. In this case, we have just one analyst covering shares. said, "Yeah, he's got a strong buy recommendation." Even better is the fair value price target of uh, you know, pointing to 100% above current levels. Yes, 100% upside in the year ahead. Now, thin coverage like this is actually a great opportunity because as more analysts hear about that growth and they get on board with new recommendations, it helps push shares higher. Now, let's get under the hood of IE with the help of the Zen rings quant model. Now, it analyzes every stock across 115 different fundamental, technical, and AI factors. then boils it all down to an intuitive ledger grade of A throughF. Indeed, the higher the grade, the higher the expected returns for those shares. Now, it also further breaks down seven underlying component grades. We're talking about value, growth, momentum, and more. This all is there to help us flag each stock's unique strengths and weaknesses. Now, gladly, IEES scores in the top 2% of all stocks we track, leading to that coveted A rating, which is our strong buy recommendation. Now, that's a worthy title because our A-rated stocks have nearly tripled the return of the S&P 500 as we look back over the past 20 years. The component grades also help spell out more of the attractive elements of their investment profile. The uh artificial intelligence grade comes in the top 26% of all stocks. This is based upon our usage of AI to pinpoint the most timely shares. Growth lands in the top 13% of all stocks. Sentiment is stronger still in the top 3%. This is our smart money signal. And the standout grade is the top 1% showing for financials proving their operational excellence of the firm that often shows up in more earnings beats in the quarters ahead. Now, one risk worth noting is that IEES rides the wave of data center building boom. Now, if that construction wave cools off, so will these shares, but right now that trend is their friend. This shows up in the record backlog leading to 70% earnings growth. On top of that is the stellar zen ratings profile that points to more upside ahead. And let's not forget the recent 35% dip in shares. Now IEES is one of the cleanest ways to own the entire grid buildout and the perfect place to kick off our stock video list today. IEES wires the power into place, but someone has to generate all those new electrons in the first place. And my next pick is building the plans that do exactly that. Before I get to that next one, here's uh something that might be of great interest to you. Now, I put together a list of three stocks I believe could double in the coming year. I found them all using the same Zen ratings model I'm using to break down the stocks in the video today. Now, you can grab those three tickets for free. Just go to wall streetzen.com/double or scan the QR code in your screen or click that link down description. Be sure to claim your copy now. Okay, our next pick is all about who generates the power. And that brings us to Argon with a symbol of HX. Now uh their main subsidiary Gemma Power uh designs and builds the large-scale electricity generation plants, natural gas, solar and more that feeds the grid, right? And business is downright booming because you cannot electrify an economy without building new power generation capacity. Every new data center, every reshort factory, every surge in grid demand needs plants that take years to build. This is why utilities and tech giants are racing to add capacity leading them to top contractors like Argon. Now, this stellar demand is showing up in their results given that Argon has served up 11 straight quarterly earnings beats. The most recent pointing to 50% earnings growth year-over-year. Not the kind of type of growth you normally think of when you think of a company tied to the utility industry. Even with all that growth, we have yet another victim, the recent AI stock selloff. In this case, we can snap up these shares for nearly half off their all-time highs. Yeah, half off. Indeed, Opportunity is knocking this classic buy the dip stock. Again, nothing has changed with their business outlook. We can just snap it up for a much more appealing entry price. This certainly explains the interest from Robert Brown of Lake Street, who ranks in the top 2% of all Wall Street analysts for his stock picking track record. Now, he knows a thing or two about picking winning stocks, and he is downright pounding the table on 80% upside for these shares in the year. Now remember, most analyst targets are only like 10 or 20% above current levels. So this 80% upside is truly something special. Argon also scores highly with the Zen ratings as well. Now after that full 115 factor review, it ranks in the top 16% all stocks leading to a B- rating. Indeed, these B-rated stocks have a tremendous track record of outperformance over the past two decades. Now let's take a look at those stellar component grades that help spell out the rest of the story. Sentiment comes in the top 17% telling you the smart money is already plugged in. Financial strength lands in the top 11% growth a notch stronger uh still in the top 9% and the standout grade is the top 3% showing for the AI factor grade which again like we talked about before is that timeliness indicator. There is a lot to like in this investment profile. Now the thing to watch out for with Argon is that its revenue can be lumpy. These are massive construction projects and the timing of when they start and finish can make results jump around from quarter to quarter. But with 11 straight earnings baits in hand with the strong Zen ratings for growth, financial sentiment in our AI timings grade, then it looks like reward far outweighs risk at this time here. Again, this is why a top ranked analyst sees 80% upside on these shares. This is a great time to get on board, especially as they are nearly half off their all-time highs. Now, Argon generates the power. Uh, IEES wires it all up, but between the power plant and the plug, there is a vast web of transmission lines and substations. It has to carry all that electricity. And my next stock pick makes the hardware that holds it all together. Now, a quick ask before we get to that stock. If you're getting value out of this video, then go ahead and uh hit subscribe and click the notification bell. That's the best way to ensure you get all my future releases. Okay. Our third stock is a littleknown company called Preformed Line Products with the symbol of PLPC. Now, the company makes the gear that physically holds the grid together. We're talking about the pieces that support, protect, and connect overhead and underground power lines, the fittings on substations, the hardware that keeps transmission and distribution network standing. It is a pure play on transmission and distribution as you will find anywhere on the stock market. Now, here is why it matters right now. You cannot expand or even maintain the power grid without this gear. Every new transmission line, every substation, every aging connection that has to be replaced increases demand that leads people to the door for a specialist like Preformed. Now, as we'd expect, the business itself is firing on all cylinders. In the most recent quarter, Preform set a company record with sales jumping 25% year-over-year. Not bad, right? But that also flowed straight to the bottom line with 75% earnings growth, right? Showing that the profit margins are greatly increasing as well. Yet, because it's a small cap stock, Wall Street is fully asleep on these shares. Not a single covering analyst. Again, this is kind of the point of our pursuit of four under the radar stocks benefiting from the need to upgrade the nation's power grid. Gladly, when Wall Street is not in the case, we still had the benefit of the deep dive analysis the Zen rings quant away. In this case, preform score in the top 2% of all stocks in this model pointing to a truly stellar fundamental profile. Right? Top 2% means it is more attractive than 98% of the stocks reviewed. The uh component grades help spell out this unique strengths of this stock as well. That party starts with financial strength, the top 15% of all stocks and right alongside is the top 15% showing for safety. Coming up next is top 10% for growth. This foreshadows more growth and more earnings beats ahead. And the standout grade is the top 3% showing for sentiment which tells you the smart money is already clued into this attractive investment story. Preformed is truly an essential company perfectly aligned with the need to modernize the American power grid. Now this is the kind of hidden gem our model was built to service before the rest of the investment world catches on. Now if it appeals to you then consider adding shares soon before others beat you to the punch and drive shares higher. Before we get to that last stock, one quick thing. If you want to stay a step ahead of the market, then join me live every Monday. That's when I share my updated market outlook and trading plan to outperform. It's also when I unveil my trade of the week based upon our proven rings quant model and my greater than 40 years of investing experience. Now, it's a free event, but you do need to register and you can do that now at wall streetzen.com/live or click the link that you see down in the description below or scan the QR code that's coming up on your screen. Right? Even if you can't join live, you should still sign up because we send a replay to every register to watch whenever it's convenient for you. Just pause the video for a moment. I'll be patient and wait for you and then I look forward to seeing you there on Monday. As always, we try and end our videos on a high note. And in this case, we have a stock on a serious earnings momentum heater. I'm talking about 19 quarters without an earnings miss. And all signs point to more good times ahead. That brings us to the shares of Nersys with a symbol of ENS and it's the perfect stock to close with today. Nerscys is one of the world's largest makers of industrial energy storage. The batteries and power systems that keep data centers, telecom networks, and the grid itself running with the demand spikes or the power flickers. Generation and transmission get all the attention, but none of it works without a backup system in place. And that's where Encyst comes in. Here's what makes Enercy exciting right now. Now, as the grid gets uh more demand and more strain, the need for stored backup power only grows, energysis sells directly into that need with incredibly sticky repeat industrial customers. Now, this is not a new trend, which explains the 19 straight earnings beats, but it's not slowing down at all, which explains how in the most recent quarter, they posted 75% year-over-year earnings growth. And just like some of the other names in this video, shares are trading nicely off their highs, which gives you a far better entry point to enjoy that growth. That recent sell-off only helps accentuate the value story in these shares. That's because even with all that outsides growth, you still get to buy these shares for a modest 4p of 14. Remember, the average stock trades for close to 20 and they don't have growth like this one. Wall Street coverage is a little higher than the others, but still surprisingly poultry. just two analysts but both firmly in the strong buy and buy camp. But even better than those recommendations are the fair value price targets issued by these analysts pointing to 50 to 70% upside potential in the year ahead. Now the Zen ratings uh quant the motion on calling the stock a winner meaning that yes indeed we have yet another elite A-rated stock based upon that full 115 factor review. The component grades confirm the stellar investment profile starting with the top 21% showing for safety followed by top 15% for growth. That last one says that that 19 quarter earnings beat streak is not likely to end anytime soon. And then we have the AI timeliness grade which is a welcome addition in the top 12% of all stocks. Then we make a big leap into the top 2% of all stocks for financial strength. This proves they are a truly well-run operation. And yes, we have value in the top 2% as well. And this is not just about the low PE. This is about 21 different measures of value. So truly this is a value stock from every possible perspective. Right? One risk to keep in mind is that part of ENRES's business is very much tied to the industrial economy. Things like a forklift and motive power batteries. So if industrial demand slows, that piece of the business could be a drag on results and a drag on shares. But this is why I saved energy for last. That risk is pretty modest, right? whereas the reward is tremendous. This explains the 19 quarter earnings beat streak and explains the big upside potential pointed out by two top ranked Wall Street analysts and explains the sell the seller zen ratings review. All this points to ample upside ahead making this the perfect stock to end our video with today. So there you have it. Four ways to power up your portfolio with stocks enjoying surging demand thanks to the massive investments to upgrade the nation's energy infrastructure. A big bonus is that right now each of these stocks is pulled back from their all-time highs. So, the window of opportunity is open. Now, it's up to you to act before that window closes. Please remember the Zen ratings are updated daily. So, be sure to check those ratings for these stocks before making your final buy, hold, sell decision. You can do that 247 for free on the quote pages at wall streetzen.com. Be sure to bookmark the site now for all your future stock research needs. Now, I want to hear from you. Which of these four stocks is your favorite? And are there any other electrification stocks you think I left off the list that should be there? Drop it all in the comments section below and let's talk it out as a investment community. Now, upgrading the power grid is not the only big trend taking place right now. Be sure to check out the video popping up on your screen to find the best stocks to buy on the US steel making revival.