The last six months have largely gone the way I expected for nVent (NYSE:NVT) since my last article. The company has indeed leveraged improving electrification demand across its industrial, commercial, and infrastructure markets, as well as seen a faster-than-expected turnaround in the thermal business. Incremental margin leverage has been more or less on par with other industrials, and management has gotten more active putting capital to work in M&A.
I still don’t believe that nVent is a superior play on the electrification “super-trend” I expect over the next decade, nor the best play on grid modernization/hardening or data center growth, but a company doesn’t have to be superior to outperform, as the Street is driven so much by expectations. I continue to believe that there’s a “it’s better than you think” angle to nVent’s story that’s still relevant, and while I think return expectations are now more ordinary, “ordinary” is the new undervalued in this market, so it may still be worth some consideration.
Read the full article here:
nVent Leveraging Improving Demand And Driving Better Margins
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