nVent Electric(NVT) soars 2.41% on data center growth, analyst optimism

nVent Electric(NVT) shares surged 2.41% intraday, marking a two-day winning streak with a cumulative gain of 2.65%. The stock price reached its highest level since January 2025, driven by strong momentum in the data center sector and positive analyst sentiment.

The strategy of buying NVT shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -1.98%, significantly underperforming the market. This indicates that relying on recent highs as a buying trigger and holding for a short duration is not a profitable strategy for NVT.

nVent Electric is experiencing robust growth in its Data Solutions business, which is a key driver for the company's performance in the data center sector. This momentum has contributed to the recent surge in the stock price, as investors recognize the potential for continued growth in this high-demand market.

KeyCorp has recently increased its price target for nVent Electric from $60.00 to $72.00. This adjustment reflects the analyst's confidence in the company's future prospects and has positively influenced investor sentiment, further boosting the stock price.

nVent Electric announced a quarterly cash dividend of US$0.20, payable on May 18. This dividend announcement is a positive indicator of the company's financial health and its commitment to returning value to shareholders, which can attract more investors and support the stock price.