"Johnson Controls sells data center chiller platforms that are getting very popular. Backlog is at $18 billion, up 20% year-over-year, with total orders up 40% year-over-year."
"You're paying less than 27 times earnings for the stock, and this can actually look expensive if you look at future growth metrics. Analysts expect 19% annual EPS growth in the coming years."
"Hyperscalers are spending hundreds of billions and are continuously increasing their expenditure on this buildout. This means that more and more components are outrunning supply."
Data center buildouts are driving demand for components, with hyperscalers increasing spending significantly. Johnson Controls, an HVAC company, is experiencing growth in its data center chiller platforms, with a backlog of $18 billion. Despite a year-to-date stock increase of less than 16%, it remains undervalued compared to other suppliers. Analysts predict 19% annual EPS growth and over 6% sales growth. However, a potential shortage in cooling technology could impact future supply as demand continues to rise.
Read at 24/7 Wall St.
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