Having raised full-year guidance three times in 2022, it's surprising to see nVent Electric 's (NYSE: NVT) stock only up 3% in 2022, at this writing. Moreover, the stock's valuation continues to look very attractive, and the company's exposure to the long-term growth trend of electrification gives confidence that its strong growth trend can continue. Here's why nVent is an excellent stock for investors to consider buying.
The company makes electrical and connection products and sells to a wide range of end-market customers across the industrial, construction, infrastructure, and energy industries. In a nutshell, you can think of the stock as a pick-and-shovel play on the electrification trend in the economy.
It's a clear trend driven by investment in infrastructure, renewable energy, energy storage, electric vehicles, charging networks, smart buildings, and industrial automation. Suppose a corporation, institution, or government invests in these trends. In that case, they will need to comply with regulations and ensure the efficiency of their electrical installations. That's where nVent's enclosures, electrical and fastening solutions, and thermal management solutions come in.
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I Still Can't Believe This Value Stock Is Only Up 3% This Year