In this article, we will take a look at the 5 best electrical equipment stocks to buy now. To see more such companies, go directly to 12 Best Electrical Equipment Stocks to Buy Now.
5. Vertiv Holdings Co. (NYSE:VRT)
Number of Hedge Fund Holders: 41
Vertiv Holdings Co. (NYSE:VRT) sells electrical, power and other solutions for the data center industry. These solutions include DC Power systems, PDUs, UPS systems, power control & monitoring systems, among others. Insider Monkey’s database of 943 hedge funds shows that 41 funds had stakes in Vertiv Holdings Co. (NYSE:VRT) as of the end of the first quarter of 2023. The biggest stakeholder of Vertiv Holdings Co. (NYSE:VRT) was Jeffrey Smith’s Starboard Value LP which owns a $241 million stake in the company.
For the first quarter, Vertiv Holdings Co. (NYSE:VRT)’s adjusted EPS in the period came in at $0.24 beating estimates by $0.08. Revenue in the period jumped 31% year over year to $1.52 billion, surpassing estimates by $110 million. Vertiv Holdings Co. (NYSE:VRT) also increased its full year 2023 guidance.
ClearBridge SMID Cap Growth Strategy made the following comment about Vertiv Holdings Co (NYSE:VRT) in its Q4 2022 investor letter:
“Another solid contributor was Vertiv Holdings Co (NYSE:VRT), a leader in power and thermal management and related tools and systems used by data centers, enterprise and industrials customers and communication carriers globally. Vertiv continues to demonstrate a recovery from supply chain disruptions, win investor approval of its new CEO’s focus on operational improvements and generate greater free cash flow which will continue to make it a strong, long-term holding.”
4. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 47
Emerson Electric Co. (NYSE:EMR) shares have gained about 12% over the past one year. As of the end of the first quarter of 2023, 47 hedge funds tracked by Insider Monkey had stakes in Emerson Electric Co. (NYSE:EMR). The biggest stakeholder of Emerson Electric Co. (NYSE:EMR) was Ken Griffin’s Citadel Investment Group which owns a $371 million stake in the company.
HSBC Securities upgraded Emerson Electric Co. (NYSE:EMR) in June to Buy from Hold. Here’s what HSBC’s Puneet Garg said:
“We like the newly transformed Emerson (EMR) for its higher organic growth and improved margin potential with higher share of industrial software business (circa 14% versus circa 6% prior to transformation), discrete industries (circa 18% versus circa 9% earlier) and exit from the historically lower-organic-growth climate technologies business. It should also benefit from revenue and cost synergies from recent acquisitions given the cohesive nature of the overall portfolio.”
3. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 55
Power management solutions company Eaton Corporation plc (NYSE:ETN)’s shares have gained about 27% year to date. JPMorgan last month gave a Neutral rating to Eaton Corporation plc (NYSE:ETN). JPMorgan said that Eaton Corporation plc (NYSE:ETN) has “emerged from the historically lower-multiple machinery sector pigeon hole and is now at a healthy premium to the (sector) through a combination of better execution but also a portfolio exposure that has evolved over the years which is now operating in one of the best end market environments we have seen in our 25 years watching the sector.”
As of the end of the first quarter of 2023, 55 hedge funds were long Eaton Corporation plc (NYSE:ETN) according to Insider Monkey’s database of 943 hedge funds. The biggest hedge fund stakeholder of Eaton Corporation plc (NYSE:ETN) was Ken Griffin’s Citadel Investment Group which owns a $78 million stake in the company.
ClearBridge Large Cap Growth Strategy made the following comment about Eaton Corporation plc (NYSE:ETN) in its Q4 2022 investor letter:
“Also within the secular category, our asset-light industrials names have flexed their strength through the bear market. Eaton Corporation plc (NYSE:ETN) is positioned in the sweet spot of several secular trends: two-way electricity solutions, microgrids and charging infrastructure for electric vehicles. While the company’s housing business is susceptible to near-term weakness, we believe Eaton can grow revenues in the mid-to-high single digits for several decades as its core utility customers have the rate base to cover ongoing electric infrastructure upgrades and buildouts.”
2. Honeywell International Inc. (NYSE:HON)
Number of Hedge Fund Holders: 58
Industrials giant Honeywell International Inc. (NYSE:HON) offers electrical products and power systems. Insider Monkey’s database of 943 hedge funds shows that 58 hedge funds were long Honeywell International Inc. (NYSE:HON) as of the end of the first quarter of 2023. The biggest stakeholder of Honeywell International Inc. (NYSE:HON) during this period was Two Sigma Advisors of John Overdeck and David Siegel which owns a $379 million stake in the company.
In June, Honeywell International Inc. (NYSE:HON) announced it will buy the head-up-display (HUD) technology unit of Swedish aerospace company Saab.
ClearBridge Large Cap Value Strategy made the following comment about Honeywell International Inc. (NASDAQ:HON) in its first quarter 2023 investor letter:
“We also used the strength in the market to sell our position in diversified industrial company Honeywell International Inc. (NASDAQ:HON). While a recovery in its commercial aerospace business remains a tailwind, we believe the valuation is extended and industrial demand continues to soften.”
1. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 59
General Electric Company (NYSE:GE) is one of the most notable names when it comes to electrical systems, power systems and machines, power electronics and equipment. As of the end of the first quarter of 2023, 59 hedge funds tracked by Insider Monkey had stakes in General Electric Company (NYSE:GE). The biggest stakeholder of General Electric Company (NYSE:GE) was Chris Hohn’s TCI Fund Management which owns a $2.5 billion stake in the company.
Earlier this month, Bank of America analyst Andrew Obin said in a note that General Electric Company (NYSE:GE) may hit the high end of its earnings guidance in 2023.
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