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VMI Stock Rallies 32% in 3 Months: What's Driving the Upside?
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Key Takeaways
VMI shares surged 32.2% in three months, topping its industry and the S&P 500.
Infrastructure gains stem from capacity expansion moves and strong demand.
VMI raised fiscal 2026 EPS guidance on utility demand, grid upgrades and stronger backlog visibility.
Valmont Industries, Inc.’s (VMI - Free Report) shares have gained 32.2% over the past three months. The company has also outperformed the Zacks Steel - Pipe and Tube industry’s 16% rise and the S&P 500’s roughly 10.7% increase over the same period.
Let’s take a look at the factors that are driving VMI stock.
Image Source: Zacks Investment Research
Infrastructure Expansion and Robust Utility Demand Aid VMI
The company has been improving efficiency through restructuring, productivity initiatives, and making strategic investments in capacity expansion, leading to strong operating margins in its Infrastructure segment. Cost-saving measures, along with efforts to remove production bottlenecks and upgrade facilities, are expected to support stronger earnings growth.
Brownfield expansion projects have added approximately $95 million to annual revenues, while AI-enabled scheduling and planning tools are being deployed to further enhance operational efficiency.
Growth prospects remain strong, supported by expanding Infrastructure operations and ongoing investments in distribution and substation structures to meet rising utility demand. Strong backlog growth has improved multi-year revenue visibility.
The Utility segment is positioned for expansion, driven by electrification, grid modernization, and increasing data-center power needs. Per VMI, U.S. utilities are expected to invest about $1.4 trillion through 2030, making this segment a key growth driver.
Expressing confidence in future performance, VMI raised its 2026 earnings per share guidance in its first-quarter call. It projects net sales of $4.2-$4.4 billion with higher Infrastructure segment revenue expectations. VMI expects earnings per share of $21.5-$23.5, up from $20.5-$23.5 projected earlier.
VMI’s Zacks Rank & Other Key Picks
VMI currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Albemarle Corporation (ALB - Free Report) , Dow Inc. (DOW - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.39 per share, indicating a 1,668.35% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 74.5%. ALB’s shares have jumped 183% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. DOWshares have gained 12.8% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 39 cents per share, indicating a 34.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%.
View the Zacks #1 Rank List
Image: Bigstock
VMI Stock Rallies 32% in 3 Months: What's Driving the Upside?
Key Takeaways
Valmont Industries, Inc.’s (VMI - Free Report) shares have gained 32.2% over the past three months. The company has also outperformed the Zacks Steel - Pipe and Tube industry’s 16% rise and the S&P 500’s roughly 10.7% increase over the same period.
Let’s take a look at the factors that are driving VMI stock.
Image Source: Zacks Investment Research
Infrastructure Expansion and Robust Utility Demand Aid VMI
The company has been improving efficiency through restructuring, productivity initiatives, and making strategic investments in capacity expansion, leading to strong operating margins in its Infrastructure segment. Cost-saving measures, along with efforts to remove production bottlenecks and upgrade facilities, are expected to support stronger earnings growth.
Brownfield expansion projects have added approximately $95 million to annual revenues, while AI-enabled scheduling and planning tools are being deployed to further enhance operational efficiency.
Growth prospects remain strong, supported by expanding Infrastructure operations and ongoing investments in distribution and substation structures to meet rising utility demand. Strong backlog growth has improved multi-year revenue visibility.
The Utility segment is positioned for expansion, driven by electrification, grid modernization, and increasing data-center power needs. Per VMI, U.S. utilities are expected to invest about $1.4 trillion through 2030, making this segment a key growth driver.
Expressing confidence in future performance, VMI raised its 2026 earnings per share guidance in its first-quarter call. It projects net sales of $4.2-$4.4 billion with higher Infrastructure segment revenue expectations. VMI expects earnings per share of $21.5-$23.5, up from $20.5-$23.5 projected earlier.
VMI’s Zacks Rank & Other Key Picks
VMI currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Albemarle Corporation (ALB - Free Report) , Dow Inc. (DOW - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
While ALB and DOW sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.39 per share, indicating a 1,668.35% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 74.5%. ALB’s shares have jumped 183% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. DOWshares have gained 12.8% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 39 cents per share, indicating a 34.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%.