The Nuclear Solution: 4 Must-Know Plays for the BIG AI Energy Surge

Nuclear power is back in a big way. Now, one of the key drivers for going nuclear is the huge power demand that comes from AI based data centers. Now, this explains why the US government has committed up to 17.5 billion in loans to launch a new generation of nuclear reactors. Now, rightfully, investors are scrambling to find the likely big winners from this large-scale investment. Now, I don't believe it will be the companies that actually build or even run the nuclear reactors. Instead, I believe the best money is to be made in all the specialty infrastructure companies needed to support the expansion of AI data centers themselves, like uh cooling systems, like electrical infrastructure, and like industrial equipment that make it all possible. That that's why in this video, I'll show you four stocks uniquely positioned to benefit from this massive growth trend. Perhaps some of them will even power up your portfolio in the future, right? Be sure to stick around for all four stocks because the last one just might be the best pick of them all. Let's start with a company that keeps the whole thing from melting down. Literally, right? SPX Technologies with a symbol of SPXC. They make cooling systems and heat injection equipment that data centers rely on to prevent servers from cooking themselves. Right. By the way, if we haven't met yet, I'm Steve Wrightmeister, but everyone calls me Ry. I'm a partner at Wall Streetzen.com, where a quant rating system pinpoint stocks with the highest likelihood of outperforming the market. And real quick, if you enjoy these types of uh stock picking videos, then hit that like button. It tells the algorithm to show you more stock breakdowns like this in the future. Back to SPX Technologies. Uh in their most recent quarterly report, management raised the ceiling on its data center business, saying it now expects roughly 1.1 in annual data center capacity at full production. Now, this strong demand helps explain why Wall Street analysts predict impressive 21% average annual earnings growth over the next few years. That's not normally what you expect for a company in the HVAC business. Right now, Wall Street analysts are also decidedly bullish on these shares. All seven covering analysts have either a buy or strong recommendation on this company. Even better is the hardy upside potential found in their fair value price targets. Now, the average uh fair value target points about 26% upside from current levels. However, there are some pounding the table for over 40% more upside in the year ahead. Note that one of the strong recommendations comes from Jamie Cook at Truis. Uh that is important because Jaime actually ranks in the top 4% of all analysts in terms of actual stock picking performance. Or to put it another way, when Jaime talks, other investors are wise to listen. And in this case, he is the one with the street high target, 40% above current levels. Right? That's good news indeed. Now, let's review the bull case for the stock through the lens of the Zen rings quant model. Now, each stock is analyzed across 115 different fundamental factors and then boil it down into an intuitive letter grade of A throughF. Indeed, we want a portfolio filled with A grades because those stocks have historically outperformed the S&P 500 by nearly 3 to one. S&P earns an overall rating of B, which amounts to a buy recommendation. Now, note that our coveted A rating is only given to the top 5% of all stocks. No shame in the game for S&P, which lands in the top 7% of all 4,600 stocks to analyze. So, it clearly has a very appealing fundamental profile. We can dig deeper with the seven underlying component grades, which shows off a company's unique strengths and weaknesses. Now, when you pop the hood on S&P, the strengths line up beautifully with a story, right? Starting with growth in top 19% of all stocks. This makes sense giving nearly five years uh without an earnings miss. Then, financial strength comes in top 12% uh sentiment top 8%. Now, that's the measure of smart money interest in these shares. And right alongside it is the AI factor grade, also top 8%. Now, the AI score, this isn't about how much artificial intelligence the company uses. It's our own usage of AI measuring how likely the stock is to outperform based on patterns in the data. So, top 8% is a strong vote of confidence on that front. One area to note, the momentum grade is sitting in the middle of the pack. In my book, that is a positive as shares are 15% off the highs, making for a much more appealing entry point, right? Especially for a company experienced exceptional growth thanks to its unique strength in cooling for AI data centers. Now, the next uh stock pick isn't a household name either, but it just raised guidance, called out data centers as a major growth driver, and our quant absolutely loves it. Right before we get to that next pick, if you like this kind of stock breakdown, then join me every Monday for my live trading sessions. The focus is on timely market insights plus my top picks. Now, it's totally free, but you do need to sign up. Do that now to join me this coming Monday. Just go to wall streetzen.com/live. Back to the main event with our second of four stocks today. Now, in this case, we have a company that makes the physical guts that moves power around. I'm talking about GatesIndustrial with a symbol of GTE. Now, they manufacture the belts, drives, and fluid power and thermal management components that keep industrial systems running. and more and more that includes data centers. This is a classic picks and shovels play that hearkens back to the California gold rush of the 1840s where most of the miners chasing their dreams actually went bust. However, the folks that really did cash in were all the service providers to the minor. Yes, providing things like picks and shovels, right? And Gates is a truly essential provider to the AI gold rush taking place right now. The proof of that last statement shows up in a big way in their uh earnings results. Not only are they riding a nine-arter earnings beat streak, but this most recent quarter might have been the most impressive of them all where they absolutely beat the stuffing out of Estimas. Now, not just a 59% earnings beat, but then management felt so emboldened by these results to actually raise guidance for the future. The main growth driver being all the work for the data centers. Wall Street is largely on board this story with six different analysts issuing buy or strong buy recommendations. This includes a lot of toprated analysts based upon their stock picking prowess. For instance, Michael Helerin of Baird who's in the top 15% of all analysts for his stock picking track record. Now, he's pounding the table for more than 40% upside for these shares in the coming year. The Zen rings is equally bullish uh on Gates. Here we have our first A-rated stock which amounts to a strong buy recommendation. That's because after the full 115 fundamental factor review, they score in the top 3% of all stocks, which points to a truly special fundamental profile. As you would expect, the component grades reveals several areas of strength. Financial strength comes in the top 12% of all stocks. Value top 7% and that's based upon a far-reaching review of 21 different value factors. And then the standout grade is safety, top 1% of all stocks tracked. that measures how consistent and predictable a company's earnings are and uh price behavior as well. This is a nice bonus to have with any growth stock. The main weakness is Wall Street is a bit mixed on these shares. Uh yeah, there's the slew of buy and strong buy, but there's far too many holds. Now, that could be a positive if some of those holds flip to buy as they pound out more earning speeds in the future. On the whole, we have another key provider of the AI boom experiencing robust growth yet not a robust price which shows up in the top 7% score for value. And let's not forget the stability found that top 1% showing for safety. This makes gates another great way to play AI without all the risk. Before we get to the next stock, I want to remind you that I publish data driven stock analysis like this every single week. So, if you want it in your feed, then go ahead and hit subscribe and turn on that notification bell. Next up, we have a company sitting on a record backlog of more than 14 billion in work already under contract. And that backlog has grown by a whopping 70% in the past year. That company has come for systems USA with a symbol of fix. That robust 14 billion backlog doesn't come from a single good quarter of activity. It comes from being the company hyperscalers call time and time again when they need a data center built and cooled. Comfort Systems handles the mechanical guts of a building, the HVAC, the cooling, the systems that keep a data center's temperature survivable. They have leaned this data center work big time because it now accounts for well over half of the company's revenue. And that transformation is showing up in their results in a big way as well. Over the past year, revenue climbed more than 45% which has translated into earnings growth north of 100%. Not the tamer growth results you would expect from an HVAC company. These results also show up in impressive operating leverage as they squeeze out more profits from every dollar of revenue they receive. And this isn't a fluke. The earnings history is a thing of beauty. They've beaten estimates for 18 quarters straight. That's four and a half years of non-stop impressive performance. Now, check out this table showing those earnings results. In particular, focus on the far right column showing their impressive earnings per share year-over-year percentage growth. And it just keeps on getting better. Some might look at the price chart and get spooked by the more than 150% gain over the past year. But the better way to look at it is how much the shares have cooled off over the past three months. To be clear, their business outlook has only grown brighter and at this time lighting away to a very appealing buy the dip opportunity in these shares. Unlike the last stock, the Wall Street analyst support here is rock solid. That's because every analyst is in the buy or strong buy camp. It's also comforting to see some topranked analyst talking up the stock. That includes Brent Theman of Oppenheimer. He's in the top 2% of all analysts for his stock picking prowess. Now he has one of the highest fair value price targets pointing to about 30% gains in the year ahead. That will prove low if they keep banging out all those earnings beats. Now the Zen range confirms the excitement here. Now as the week I'm recording comfort system earns an overall B rating, but honestly it's more like a B+ as it just sits a notch outside of a territory and the top 5.2% of all stocks after that 115 factor review. Remember top 5% are A-rated. So, it's right on the cusp. The quality of this pick shows up much more clearly in its component grades. Growth is in the top 12%. This is about their consistently positive earnings results. Uh, momentum also in the top 12%. Then financials comes in much higher in the top 3% which proves they are extremely well-run operation. And the standout grade is sentiment which is top 2% meaning the smart money is already circling the stock. The weakness here is the safety grade which is below average. Uh that is because investors are well tuned into the AI story here. So when the group gets volatile, these shares get tossed around as well. But look at that track record of 18 straight earnings beats and the tremendous year-over-year earnings growth. Not to mention the monster 14 billion backlog in business. All that fundamental goodness. And we get to buy shares on a recent dip. There is a lot to be comfortable with in this stock. Yeah, pun intended. Before we get to the last stock, one quick thing. If you want to stay one step ahead of the market, then join me live every Monday. That is when I share my updated market outlook and trading plan to outperform. This is also when I unveil my trade of the week based upon our proven Zenraqu model and my greater than 40 years of investing experience. Now, it's a free event, but you do need to register. Just go to wall streetzen.com/live or click the link in the description down below or scan the QR code coming up on your screen. Just pause the video for a moment to sign up. I can be patient and wait for you and then I look forward to seeing you on Monday. Let's finish up strong with a company where the numbers generally impress me. That brings us to IEES holdings with a symbol of IESC. Now, IEES designs and installs the integrated electrical and technology systems inside data centers. Uh the wiring, the power distribution, the low voltage nervous system that everything else plugs into. Now, when a hyperscaler builds an AI facility, somebody has to physically wire the whole thing. And IEES is one of the leaders in that wiring space. As you would expect, business is absolutely booming. This shows up in the 72% year-over-year earnings growth, about four times the pace of the average company these days. Another place to see that boom is in the most recent quarterly results. They put up a monster beat of nearly $2 extra in profits per share. This is mostly about the growth in their communication segment, which yes, is the one that focuses on data center. It is truly growing like a weed with no signs of slowing. This is a case where I saved the best stock for last. The proof of that statement shows up in their Zen rings review. Not just A-rated, not just in the top 5% of all stocks, but in the top 1% of all stocks analyzed by the model. The component grades were reveal yet more to like. We start with the top 9% showings for growth and momentum. Now, the growth component is the best for showing more earnings beats ahead. Then we have sentiment, the top 4%. The smart money is very much awake on this stock as well. And then the standout financials top 1% a fortress balance sheet and stellar operational metrics point to a very well-run company. Now additionally IEES is the number one rated stock out of 42 names in the top rated engineering construction industry. There are a lot of strong stocks in the space. So never a bad idea to move into top rated name in the group. The honest risk on IEES is simple. If the data center spending cycle cools, a company like this is going to get punished. But there are no signs of cooling. If anything, all signs point to more and more AI spending, which will benefit a company like this. Add on top, they are in the 99th percentile of all stocks in the Zen rings model, and it greatly increases the odds of future share price outperformance. So, let's tie a bow on this. Four great ways to play the AI boom that has recently gone nuclear, right? Every one of them is a key supplier to the AI revolution. Each showing exceptional growth and each earning high marks from our proprietary Zen ratings quant model. Please remember the Zen rings are updated daily on the quote pages at wall streetzen.com. And it's always a good habit to check those ratings before buying or selling a stock. So be sure to bookmark the site for future frequent visits. Now I want to hear from you. Which of these four stocks is your favorite? And is there a name powering the AI buildout that I didn't mention? Drop it all in the comment section below for the benefit of our community. A great follow to this video is the one coming up on your screen right now. In that video, I review the four best high growth stocks to buy and hold forever. Go check it out now.