Davy
Small-Cap Investor, Archetype-Research, Undercovered Companies & Data-Center Supply Chains
KSB is a rare find at a P/E of about 10 in the current market mania. Per @MoodyWriter13, its specialty pumps and valves are essential for nuclear and gas-fired power plants, copper mines, oil sands and LNG, end markets already drawing capital from the AI supercycle, and a commodity supercycle would need huge volumes of its pumps. It also trades at about 4.7x EV/EBIT. x.comÂ
KSB's half-year results strengthen the case that the German pump maker supplies exactly the industries driving the AI supercycle, yet the shares trade at only about 11 times 2026 earnings. Nuclear demand drove a 16.4% rise in Pumps order intake, gas power plant demand stays very high, mining revenue jumped 29.7% in Q2, and the first significant data-center cooling orders came in. The aftermarket earns an 18.2% EBIT margin and grows with each reactor equipped, since plants run up to 80 years. … Show more
BWX Technologies combines established naval nuclear demand with growth from commercial nuclear and microreactors, making it one of the most obvious buys today. Nuclear components and fuel for US submarines and aircraft carriers carry the business, with real contracts, profits, growing revenue and little reliance on speculative announcements. Guidance is up and backlog has grown, which looks better at a lower price. The premium valuation is worth paying as the next wave of nuclear demand builds. … Show more
Baker Hughes looks about one-third too cheap, as its energy technology business is being thrown out with the oil-services selloff. Its energy portfolio is incredible. x.comÂ
