Research · Sep 3, 2026
Eaton Corporation FY2025 revenue ~$26.5B (+7-9% organic) with adj. operating margin expanding to 22.5% and adj. EPS ~$11.30 — 14% annual EPS compounding sustained over 5 years (industry-leading US industrials). Electrical Americas (47% of revenue ~$13B) data center exposure grew from ~12-15% FY2022 to 30%+ FY2025 (~$4B+) — AI infrastructure capex translated into electrical equipment demand. Backlog ~$11B+ supports 5-6 months forward revenue. CEO succession in progress: Craig Arnold (since 2016) transitioning to Paulo Ruiz CEO-elect early 2026. FY2026 thesis: data center capex continuation drives Electrical Americas growth toward $14-15B (+8-12%); Aerospace recovers as Boeing 737 MAX rates normalize + military programs scale; operational margin expansion continues; key risks: AI hyperscaler capex normalization, commercial real estate weakness, Boeing supply chain extending.
Research · Jun 8, 2026
GE Vernova at $959 and Eaton at $421 — grid equipment with 24-30 month lead times. GEV +96.7% one-year on gas turbine backlog growth.
Research · Apr 23, 2026
Brent crude topping $100/barrel on Strait of Hormuz concerns reveals a mispricing in energy stocks still trading on lower oil price assumptions. XOM and CVX offer 15-20% upside as earnings revisions catch up to triple-digit oil reality, with LMT benefiting from elevated Middle East defense spending. The thesis breaks if oil retreats below $85 by Q3 2025.
Research · Mar 12, 2026
The AI infrastructure capex super-cycle is channeling $200B+ in hyperscaler spending into data centers, power, networking, and cooling. Arista Networks and Vertiv lead the ranking with the strongest order book visibility, while Amphenol offers the best growth-to-valuation ratio and Dell provides deep value at 12.8x forward earnings.
Research · Mar 12, 2026
Power infrastructure stocks GEV, ETN, APH, VRT, and PWR have delivered extraordinary returns on AI data center demand, but trade at 27–59x forward earnings. Eaton and Amphenol offer the best risk-reward with proven margins and order momentum, while GE Vernova and Vertiv carry the highest valuation risk if hyperscaler capex normalizes.
