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NVT Rises 14% in 3 Months: Should You Buy the Stock Right Now?
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Key Takeaways
NVT shares rose 14.5% in three months, outperforming its industry and key peers.
Data center and power utility demand drove Q3 sales up 35% and boosted full-year 2025 guidance.
Liquid cooling strength, backlog growth and acquisitions support NVT's long-term growth outlook.
nVent Electric ((NVT - Free Report) ) shares have gained 14.5% in the past three months, outperforming the Zacks Electronics - Miscellaneous Components industry’s growth of 9%. The stock also outperformed its industry peers, including OSI Systems ((OSIS - Free Report) ), Rogers ((ROG - Free Report) ) and TE Connectivity ((TEL - Free Report) ). Year to date, shares of OSI Systems, Rogers and TE Connectivity have gained 13%, 10% and 8.5%, respectively.
The outperformance of nVent Electric’s share price raises the question: Should investors continue accumulating NVT stock?
3-Month Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Rally in NVT Stock?
What’s fueling this strength is nVent Electric’s exposure to two fast-growing markets — data centers and power utilities. Companies in these two sectors are increasing their investments in electrical systems and cooling solutions, and nVent sits right in the middle of this spending wave. nVent Electric is capitalizing on these trends through its innovative portfolio strength of AI infrastructure and liquid cooling solutions, which are aiding its overall financial performance.
In the last reported financial results for the third quarter of 2025, the company’s net sales soared 35% year over year to $1.05 billion and surpassed the Zacks Consensus Estimate by 4.8%. Similarly, adjusted earnings per share (EPS) jumped 44.4% to 91 cents and beat the consensus mark by 3.4%.
Considering a strong demand for its solutions and a better-than-expected third-quarter performance, nVent Electric raised its guidance for full-year 2025. The company now expects full-year 2025 revenue growth in the range of 31-33%, up from its previous guidance of 29-33%. The company now expects full-year 2025 adjusted EPS in the band of $3.31-$3.33, up from its prior guidance of $3.21-$3.30.
Data Center Demand Aids Nvent Electric's Prospects
nVent Electric is seeing very strong demand from data center customers, driven mainly by the growth in AI workloads. In the third quarter, organic orders rose around 65%, and management said most of this increase came from large liquid cooling orders for hyperscaler programs. The company now has visibility into 2026 and even some programs extending into 2027, which suggests that customer spending plans remain firm. The company's backlog during the third quarter also grew double digits sequentially, giving nVent Electric a solid base for future revenues.
Liquid cooling continues to be a core driver. Less than 10% of data centers are liquid-cooled today, but new graphics processing unit chips require more advanced cooling, which supports long-term demand. nVent Electric has more than a decade of experience in this area and has deployed more than 1 gigawatt of cooling. The company is also expanding capacity. A new Minnesota facility will double its footprint for liquid cooling production in early 2026. Additionally, during the third quarter, nVent Electric was also added to NVIDIA’s partner network, which increases its visibility with global AI infrastructure customers.
Moreover, the overall trend in AI infrastructure and liquid cooling demand appears strong. nVent Electric’s backlog, customer pipeline and ongoing investments suggest that data center demand is likely to remain an important growth driver for the company. The Zacks Consensus Estimate for nVent Electric’s full-year 2025 total revenues is pegged at $3.83 billion, indicating a year-over-year increase of 11.1%.
Image Source: Zacks Investment Research
nVent Electric Benefits From Strength in Power Utilities Market
Power utilities are becoming an important and steady source of growth for nVent Electric. In the third quarter, the company reported solid order activity from power utility customers across both of its major segments, Systems Protection and Electrical Connections. These customers are upgrading equipment as electricity demand increases, especially with more data centers coming online. This creates steady demand for nVent Electric’s enclosures, power distribution products, and related electrical equipment, which bodes well for the company’s prospects in the upcoming quarters.
nVent Electric's acquisition of Trachte and Electrical Products Group (EPG), both focused on power utility applications, is performing better than expected. EPG is growing at a double-digit rate and is expected to contribute about 15 percentage points to nVent Electric’s fourth-quarter sales growth. Management said that both acquired businesses are finding new applications, including work tied to data center projects.
nVent Electric is investing to support this demand. The company is expanding capacity, improving plant efficiency, and strengthening its supply chain in these acquired businesses. Therefore, power utilities demand appears to be a reliable and growing market for nVent Electric and is likely to remain a meaningful contributor to the company’s long-term prospects.
nVent Electric is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVT’s forward 12-month P/S ratio sits at 3.92X, higher than the industry’s forward 12-month P/S ratio of 2.22X.
NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Navitas Semiconductor stock also trades at a higher P/S multiple compared with other industry peers, including OSI Systems, Rogers and TE Connectivity. At present, OSI Systems, Rogers and TE Connectivity have P/S multiples of 2.42X, 1.76X and 3.46X, respectively.
NVT’s rally reflects investor excitement about AI-related Data Center demand, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term.
Conclusion: Buy nVent Electric Stock Right Now
nVent Electric is seeing steady demand from data centers and power utilities, which is helping drive strong orders and a growing backlog. Moreover, the company is expanding capacity to support future demand. These factors support the outlook for continued growth. Additionally, the stock’s valuation reflects high growth expectations from the company, which is set to benefit from strong long-term demand from AI-related data center projects.
Image: Bigstock
NVT Rises 14% in 3 Months: Should You Buy the Stock Right Now?
Key Takeaways
nVent Electric ((NVT - Free Report) ) shares have gained 14.5% in the past three months, outperforming the Zacks Electronics - Miscellaneous Components industry’s growth of 9%. The stock also outperformed its industry peers, including OSI Systems ((OSIS - Free Report) ), Rogers ((ROG - Free Report) ) and TE Connectivity ((TEL - Free Report) ). Year to date, shares of OSI Systems, Rogers and TE Connectivity have gained 13%, 10% and 8.5%, respectively.
The outperformance of nVent Electric’s share price raises the question: Should investors continue accumulating NVT stock?
3-Month Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Rally in NVT Stock?
What’s fueling this strength is nVent Electric’s exposure to two fast-growing markets — data centers and power utilities. Companies in these two sectors are increasing their investments in electrical systems and cooling solutions, and nVent sits right in the middle of this spending wave. nVent Electric is capitalizing on these trends through its innovative portfolio strength of AI infrastructure and liquid cooling solutions, which are aiding its overall financial performance.
In the last reported financial results for the third quarter of 2025, the company’s net sales soared 35% year over year to $1.05 billion and surpassed the Zacks Consensus Estimate by 4.8%. Similarly, adjusted earnings per share (EPS) jumped 44.4% to 91 cents and beat the consensus mark by 3.4%.
Considering a strong demand for its solutions and a better-than-expected third-quarter performance, nVent Electric raised its guidance for full-year 2025. The company now expects full-year 2025 revenue growth in the range of 31-33%, up from its previous guidance of 29-33%. The company now expects full-year 2025 adjusted EPS in the band of $3.31-$3.33, up from its prior guidance of $3.21-$3.30.
Data Center Demand Aids Nvent Electric's Prospects
nVent Electric is seeing very strong demand from data center customers, driven mainly by the growth in AI workloads. In the third quarter, organic orders rose around 65%, and management said most of this increase came from large liquid cooling orders for hyperscaler programs. The company now has visibility into 2026 and even some programs extending into 2027, which suggests that customer spending plans remain firm. The company's backlog during the third quarter also grew double digits sequentially, giving nVent Electric a solid base for future revenues.
Liquid cooling continues to be a core driver. Less than 10% of data centers are liquid-cooled today, but new graphics processing unit chips require more advanced cooling, which supports long-term demand. nVent Electric has more than a decade of experience in this area and has deployed more than 1 gigawatt of cooling. The company is also expanding capacity. A new Minnesota facility will double its footprint for liquid cooling production in early 2026. Additionally, during the third quarter, nVent Electric was also added to NVIDIA’s partner network, which increases its visibility with global AI infrastructure customers.
Moreover, the overall trend in AI infrastructure and liquid cooling demand appears strong. nVent Electric’s backlog, customer pipeline and ongoing investments suggest that data center demand is likely to remain an important growth driver for the company. The Zacks Consensus Estimate for nVent Electric’s full-year 2025 total revenues is pegged at $3.83 billion, indicating a year-over-year increase of 11.1%.
Image Source: Zacks Investment Research
nVent Electric Benefits From Strength in Power Utilities Market
Power utilities are becoming an important and steady source of growth for nVent Electric. In the third quarter, the company reported solid order activity from power utility customers across both of its major segments, Systems Protection and Electrical Connections. These customers are upgrading equipment as electricity demand increases, especially with more data centers coming online. This creates steady demand for nVent Electric’s enclosures, power distribution products, and related electrical equipment, which bodes well for the company’s prospects in the upcoming quarters.
nVent Electric's acquisition of Trachte and Electrical Products Group (EPG), both focused on power utility applications, is performing better than expected. EPG is growing at a double-digit rate and is expected to contribute about 15 percentage points to nVent Electric’s fourth-quarter sales growth. Management said that both acquired businesses are finding new applications, including work tied to data center projects.
nVent Electric is investing to support this demand. The company is expanding capacity, improving plant efficiency, and strengthening its supply chain in these acquired businesses. Therefore, power utilities demand appears to be a reliable and growing market for nVent Electric and is likely to remain a meaningful contributor to the company’s long-term prospects.
Long-Term Prospects Justify NVT’s Premium Valuation
nVent Electric is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVT’s forward 12-month P/S ratio sits at 3.92X, higher than the industry’s forward 12-month P/S ratio of 2.22X.
NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Navitas Semiconductor stock also trades at a higher P/S multiple compared with other industry peers, including OSI Systems, Rogers and TE Connectivity. At present, OSI Systems, Rogers and TE Connectivity have P/S multiples of 2.42X, 1.76X and 3.46X, respectively.
NVT’s rally reflects investor excitement about AI-related Data Center demand, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term.
Conclusion: Buy nVent Electric Stock Right Now
nVent Electric is seeing steady demand from data centers and power utilities, which is helping drive strong orders and a growing backlog. Moreover, the company is expanding capacity to support future demand. These factors support the outlook for continued growth. Additionally, the stock’s valuation reflects high growth expectations from the company, which is set to benefit from strong long-term demand from AI-related data center projects.
Currently, nVent Electric carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.