NVT - nVent Electric: 28% Operating Income Growth In Q1 Plenty More Firepower

2024-06-12 22:31:26 ET

Summary

• The industrials sector offers the least attractive price/value propositions in S&P 500 in my view.
• NVT looks attractive based on fundamentals, sentiment, and valuation, with a price target range of $88-$99 per share.
• NVT operates through three primary business segments, showing steady revenue growth and potential for future economic value.

Investment summary

The industrials sector has shifted gear and now offers some of the least attractive price/value propositions of the S&P 500 sectors. To illustrate this, Figure 1 shows a composite built using 1) each sector's share of forward EPS estimates and 2) the current sector weights of the index. As seen, the industrial sector sits at the bottom when considering these two factors.

The basic materials sector, on the other hand, sits at the top - consistent with findings I made in Q3 2023 (avid readers of this channel will have noted this)....

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