This Under-the-Radar AI Infrastructure Stock Just Set New All-Time Highs

• Valmont Industries (VMI) is showing strong technical momentum, hitting new all-time highs and maintaining a 100% “Buy” Barchart opinion.
• VMI trades above key moving averages, with a Trend Seeker “Buy” signal intact and a 41% gain over the past year.
• Fundamentals remain solid with consistent earnings and revenue growth.
• VMI is volatile and speculative. Strict risk management and stop-loss strategies are recommended for investors considering this stock.

Today’s Featured Stock

Valued at $7.6 billion, Valmont Industries (VMI) is primarily engaged in the production of fabricated metal products, metal and concrete pole and tower structures, and mechanized irrigation systems in the United States and abroad. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. VMI checks those boxes. Since the Trend Seeker signaled a buy on July 22, the stock gained 9.37%.

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VMI Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for Valmont Industries

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Valmont hit a new all-time high of $388.10 in intraday trading on Sept. 11.

• Valmont has a Weighted Alpha of +40.41.
• VMI has an 100% “Buy” opinion from Barchart.
• The stock gained 41.40% over the past year.
• VMI has its Trend Seeker “Buy” signal intact.
• Valmont is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 2 new highs and gained 1.5% in the last month.
• Relative Strength Index (RSI) is at 59.40%.
• There’s a technical support level around $378.23.

Don’t Forget the Fundamentals

• $7.6 billion market capitalization.
• 22.02x trailing price-earnings ratio.
• 0.71% dividend yield.
• Revenue is expected to grow 0.65% this year and another 5.11% next year.
• Earnings are projected to increase 9.37% this year and an additional 11.99% next year.

Analyst and Investor Sentiment on Valmont Industries

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are split on Valmont.

• The Wall Street analysts tracked by Barchart have issued 3 “Strong Buy” and 2 “Hold” opinions on the stock.
• Their price targets are between $335-$400.
• Value Line gives the stock its “Above Average” rating with a price target of $436.
• CFRA’s MarketScope Advisor rates it a “Buy.”
• Morningstar thinks the stock is fairly valued.
• 901 investors following the stock on Motley Fool think the stock will beat the market while 73 think it won’t.
• 4,960 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Valmont Industries

Valmont has shown very consistent increases in both revenue and earnings for a very long time and has not disappointed long-term investors. The industrial products it makes will be used to implement the electrical grid infrastructure that will be needed to feed the energy needs of AI data centers.

I caution that VMI is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.