We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
2 Stocks That May Benefit from Data Center Build-out
Read MoreHide Full Article
Key Takeaways
Data Centers need aluminum and concrete.
TG and MCEM may benefit from data center construction.
The nationwide data center build-out continues, though rife with politics.
Here we highlight 2 microcaps that may benefit.
Tredegar Corporation (TG - Free Report) is a manufacturing company engaged, through its subsidiaries, in the production of aluminum extrusions and polyethylene and polypropylene plastic films. In 2025 the Aluminum Extrusions segment contributed about 86% of revenue with High Performance Films segment contributing the remaining 14%.
Image Source: Zacks Investment Research
Within the Aluminum Extrusions segment, about 54% of the end use applications are in the nonresidential building and construction industry. But digging further into the weeds, one finds that its relatively new TSLOTS business accounted for about 11% of volume in the latest quarter, and importantly the shipments grew 45% YOY supported by demand for data-containment and data-center infrastructure.
TSLOTS are aluminum modular systems utilized as aisle containment barriers, equipment enclosures, support frames, and server room workstations within data centers.
While not yet reported as 10% of total revenue, it appears to be getting close and is worth monitoring.
Importantly, for Tredegar Corporation (TG - Free Report) , this business could soon begin moving the needle on consolidated company performance. Zacks currently has a Neutral rating on the stock.
The other stock with a possible data center connection is The Monarch Cement Company (MCEM - Free Report) .
To be clear, the company has not publicly disclosed any benefit from the data center construction industry. This is speculation and prognostication on our part.
Image Source: Zacks Investment Research
The Monarch Cement Company (MCEM - Free Report) manufactures and sells portland cement and operates through its subsidiaries in ready-mixed concrete, concrete products, bulk material hauling, and other building materials businesses.
But, data centers require a substantial amount of concrete for weight support with applications for foundations, high-load floors, server racks, and cooling plants.
The company has operations in Kansas, Iowa, Missouri, Arkansas, and Oklahoma. So, the investment thesis is that ongoing data construction build-out in the Midwest may benefit the company down the road.
View the Zacks #1 Rank List
Image: Shutterstock
2 Stocks That May Benefit from Data Center Build-out
Key Takeaways
The nationwide data center build-out continues, though rife with politics.
Here we highlight 2 microcaps that may benefit.
Tredegar Corporation (TG - Free Report) is a manufacturing company engaged, through its subsidiaries, in the production of aluminum extrusions and polyethylene and polypropylene plastic films. In 2025 the Aluminum Extrusions segment contributed about 86% of revenue with High Performance Films segment contributing the remaining 14%.
Image Source: Zacks Investment Research
Within the Aluminum Extrusions segment, about 54% of the end use applications are in the nonresidential building and construction industry. But digging further into the weeds, one finds that its relatively new TSLOTS business accounted for about 11% of volume in the latest quarter, and importantly the shipments grew 45% YOY supported by demand for data-containment and data-center infrastructure.
TSLOTS are aluminum modular systems utilized as aisle containment barriers, equipment enclosures, support frames, and server room workstations within data centers.
While not yet reported as 10% of total revenue, it appears to be getting close and is worth monitoring.
Importantly, for Tredegar Corporation (TG - Free Report) , this business could soon begin moving the needle on consolidated company performance. Zacks currently has a Neutral rating on the stock.
The other stock with a possible data center connection is The Monarch Cement Company (MCEM - Free Report) .
To be clear, the company has not publicly disclosed any benefit from the data center construction industry. This is speculation and prognostication on our part.
Image Source: Zacks Investment Research
The Monarch Cement Company (MCEM - Free Report) manufactures and sells portland cement and operates through its subsidiaries in ready-mixed concrete, concrete products, bulk material hauling, and other building materials businesses.
But, data centers require a substantial amount of concrete for weight support with applications for foundations, high-load floors, server racks, and cooling plants.
The company has operations in Kansas, Iowa, Missouri, Arkansas, and Oklahoma. So, the investment thesis is that ongoing data construction build-out in the Midwest may benefit the company down the road.
Zacks currently has an Outperform rating on MCEM.