3 Monster Stocks Worth Buying and Holding for the Next 5 Years

Source The Motley Fool

Key Points

  • Vertiv provides the power and cooling systems, and management expects sales to grow at least 20% per year through 2030.

  • Comfort Systems has a record $14 billion backlog, with technology projects now making up 58% of its revenue.

  • Quanta Services' record $53 billion backlog gives it a multiyear runway as it shifts toward larger, higher-margin projects.

  • 10 stocks we like better than Vertiv ›

The artificial intelligence (AI) build-out is creating tremendous growth opportunities for quality industrial stocks. AI-focused processing and memory chips get the headlines, but companies that supply power and electrical systems for data centers can grow in value for years without the drama of who is winning or losing the chip race.

Dell'Oro Group expects worldwide data center spending to top $3 trillion by 2030. Vertiv (NYSE: VRT), Comfort Systems (NYSE: FIX), and Quanta Services (NYSE: PWR) are three industrial stocks positioned to reward patient investors.

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Vertiv is taking a bigger share of data center spending

Vertiv designs the power and thermal systems that keep data centers online. Advanced AI chip clusters generate far more heat and consume more electricity, which raises the value of reliable cooling and power delivery. Vertiv has also moved beyond selling individual components to providing system-level designs, letting it capture a larger share of customer spending.

The stock has returned 57% over the past year as of Oct. 2, supported by double-digit growth. Net sales rose 24% year over year in Q2 2026, and management raised full-year guidance, now calling for adjusted sales growth of about 31%.

On the Q2 2026 earnings call, CEO Gio Albertazzi said, "Our global pipeline momentum remains very strong, and we expect another year of robust orders growth." Vertiv is collaborating with Nvidia on the first AI data center using 800 VDC (Volt Direct Current) architecture at the rack level, powered by Nvidia's next-generation Vera Rubin platform.

At the Sept. 8, 2026, Goldman Sachs Communacopia and Technology Conference, Vertiv re-affirmed a long-term target from May that said revenue would compound at 20%-22% annually from 2025 through 2030, with margins expected to improve to 27%.

Vertiv trades around 38 times forward earnings, while analysts expect earnings to grow roughly 40% annually. That's a reasonable valuation relative to growth that could fuel excellent returns over the next five years.

Comfort Systems' Q2 revenue jumped 50% year over year

Comfort Systems installs mechanical and electrical systems for commercial and industrial buildings. It's a heating, ventilation, and air conditioning (HVAC) and electrical contractor benefiting from a large and growing backlog tied to the data center build-out. That backlog hit a record $14 billion in Q2 2026, supporting its $3.3 billion in quarterly revenue.

Shares have returned about 111% over the past 12 months as of Oct. 2. Second-quarter revenue jumped 50% year over year. Demand from tech customers is a major driver: The sector represented 58% of revenue in the first half of 2026, up from 40% a year earlier.

Projects are becoming more complex as Comfort Systems expands into modular construction, which is emerging as a meaningful growth engine. The company has 3.5 million square feet of modular building capacity today and plans to expand that to about 5 million square feet by late summer 2027.

The stock trades near 36 times forward earnings, while analysts project about 45% annual earnings growth. Comfort Systems could still have years of market-beating returns ahead.

Quanta's backlog hit a record $53 billion

Quanta Services designs, installs, and maintains the electrical systems that deliver power for utilities and, increasingly, technology customers. It balances steady service work with project-based construction, which supports long-term revenue visibility. Revenue has surged from about $13 billion in 2021 to nearly $33 billion on a trailing-12-month basis as of Q2 2026.

The stock is up 60% over the past year as of Oct. 2. Second-quarter revenue grew 41% year over year, accelerating from 26% in the first quarter. Growth is being fueled by grid modernization, electrification, and rising power demand from data centers.

Quanta is known for executing complex projects on time and on budget, a real competitive advantage. Its backlog reached a record $53 billion in Q2 2026, and management believes it can work through that backlog while improving margins as the mix shifts toward larger, higher-complexity jobs.

The stock trades around 40 times forward earnings, while analysts expect roughly 20% earnings growth in the coming years. That valuation looks reasonable, given the backlog and the durability of its customer agreements.

All three stocks depend on a growing data center market. If anything slows that down, such as regulation, that could drop these stock prices. But that risk appears to be low right now, as demand for AI services remains strong, requiring more investment in data centers. Vertiv, Comfort Systems, and Quanta Services appear well-positioned to capitalize on this growing industry.

Should you buy stock in Vertiv right now?

Before you buy stock in Vertiv, consider this:

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*Stock Advisor returns as of October 7, 2026.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA, Quanta Services, and Vertiv. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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