IES Holdings (IESC) is a small-cap stock that’s returning big profits to its shareholders.
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The Texas-based company designs and installs integrated electrical and technology systems for data centers and other industrial facilities around the U.S. It also provides electricity to some residential housing communities.
The company’s data center business is booming, powering the company’s financial results and stock to new heights. In the past 12 months, IESC stock has risen 183%, outpacing mega-cap growth stocks such as Nvidia (NVDA). Over the last five years, the share price is up 751%.
Yet with all the growth, IES Holdings has a market capitalization of only $4.41 billion, placing it in the small-cap camp that is loosely defined as any security with a market cap under $10 billion. The stock currently trades at 20 times future earnings estimates, which is inline with the price-to-earnings (P/E) ratio of stocks listed on the benchmark S&P 500 index.
No Analyst Coverage
IES Holdings currently has more than 8,000 employees. A going concern since 1997, it has been growing in recent years through a combination of acquisitions and new clients. Many of the new clients are in the fast-growing data center space, where demand for electricity is booming.
A dozen years ago, IESC stock was trading for less than $2 a share. Today, it is just over $220. More growth can be expected as the company capitalizes on the artificial intelligence (AI) wave and demand for data centers and electricity. Yet despite the company’s success, no analysts on Wall Street cover the stock.
Is IESC Stock a Buy?
As no analysts cover IESC stock, we look instead to the three month performance of the share price. As one can see in the chart below, IES Holdings’ stock has risen 5% in the last 12 weeks following a bull run earlier in 2024.
