Jonathan Sakraida, CFRA Research analyst, joins Market Domination to discuss some lesser-known plays in the industrials sector (XLI).
Sakraida points to Vertiv (VRT) as an opportunity, noting that it’s a great data center infrastructure play as the AI race heats up. “They are a leading manufacturer and service provider for thermal cooling and power management systems for data centers. Data centers represent just around 75% of their sales. But at the end of this year, we’re expecting that to be more like 80-85%, just given how robust this growth is,” he explains.
He also points to Xylem (XYL), which is a play tied to the 2021 federal stimulus. “It’s been very slow to work its way down to the project activity level, but we’re starting to see some pickup,” he tells Yahoo Finance. Sakraida notes that about $550 billion of stimulus will be dispersed over the next few years.
Xylem is a water infrastructure play, and he calls it a “leader in this space” with more upside to go.
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This post was written by Melanie Riehl
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