Electrical Grid - Cables & Connectors

Components Performance/Risk
Period Return
47.5%
Return Rank
Strong
Risk Exposure
High Risk

Power grids may seem to be one of those utilities, run on long-term single-digit investment programs over long horizons

Power grids cannot be taken for granted anymore, investment budgets are not stuffy affairs and the programs are anything but long-term

 

Electricity's share  of energy consumption, from green or not-so-green sources, is estimated by the IEA to rise six times faster as total energy demand, propelled by electrical vehicles, homes, data centers and industrial processes (notably electricity-intensive manufacturing of solar modules, batteries, electric vehicles and associated processes, such as refining of the related materials) 

Demand for energy in developing countries, China and India on the fore, is increasing at a fast clip, supported by industrial growth and home demand (such as air-conditioning)

And last, upkeep of existing grid networks is a work in progress, weighing on demande for new equipment (such as transformers)

 

A clear sense of urgency in upgrade is pervasive and 'clean energy' generated by renewables, wind and solar, is a factor

Renewable energy projects are joining a queue in Europe to plug into the existing infrastructure because rapidly expanding production has already taken up the slack built in the grid to handle swings in energy production...with more, a lot more gigawatts in the pipeline or at late planning stages 

To complicate the challenge further, individual energy producers, by way of rooftop solar panels, need to feed power back into the grid, reversing the usual flow of electricity 

And the US is not far behind : the assessment by the US Department of Energy (Oct. 2023) points out that the power transmission system is running into both capacity constraints and technical obsolescence regarding long-distance electricity transfer

With big investment budgets, technological challenges and political urgency... the cable industry may warrant a closer look

Theme Components
Name
Ticker
Sector
Industry
Cur. Price
Mkt. Cap
Performance
Momentum
Risk Rank
Risk Contrib
 
IES Holdings IESC Industrial GoodsInfrastructure Contractors663.7012 B86.7% Weak Down High Risk
Preformed Line Products PLPC Industrial GoodsCables, Connectors & Cabling Networks325.821.6 B132.1% Weak Down Above Average
Amphenol APH Industrial GoodsCables, Connectors & Cabling Networks157.43186 B46.4% Neutral Above Average
Belden BDC Industrial GoodsCables, Connectors & Cabling Networks103.033.9 B-20.0% Weak Down Average Risk
Sumitomo Electric Industries (ADR) SMTOY Industrial GoodsCables, Connectors & Cabling Networks7.45--69.6% Sharp Down High Risk
Legrand (ADR) LGRDY Industrial GoodsCables, Connectors & Cabling Networks30.76-4.2% Weak Down Below Average
Prysmian (ADR) PRYMY Industrial GoodsCables, Connectors & Cabling Networks71.57-83.7% Weak Down Above Average
nVent Electric NVT Industrial GoodsCables, Connectors & Cabling Networks158.7825 B102.9% Weak Down Above Average
Powell Industries POWL Industrial GoodsElectrical Power Systems & Automation242.478.5 B192.5% Sharp Down High Risk
Emerson Electric Company EMR Industrial GoodsElectrical Power Systems & Automation144.9078 B-1.9% Neutral Below Average
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