The Best 3 Industrial Energy Stocks to Buy and Hold for Decades
The Best 3 Industrial Energy Stocks to Buy and Hold for Decades
Courtney Carlsen, The Motley FoolWed, May 27, 2026 at 7:36 PM UTC
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Key Points -
GE Vernova is seeing robust demand for its gas turbines from hyperscalers.
BWX Technologies develops crucial components for nuclear power plants and is the sole provider of nuclear fuel for the U.S. Navy.
Fluence Energy's energy storage solutions help deliver reliable power to complement intermittent wind and solar energy.
10 stocks we like better than GE Vernova ›
Industrial companies form the backbone of the U.S. economy. That's even more true as the U.S. ramps up data center construction. The artificial intelligence (AI) revolution is driving a massive demand for infrastructure and energy, making this sector more important than ever.
In addition to the AI-driven growth, the U.S. government is encouraging greater investment in domestic manufacturing, seeking to reduce reliance on foreign energy sources. It's also significantly increasing defense and aerospace spending, providing a powerful backdrop for industrial operators.
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If you're a long-term investor looking to capitalize on these strong tailwinds, three industrial stocks stand out today: GE Vernova (NYSE: GEV), BWX Technologies (NYSE: BWXT), and Fluence Energy (NASDAQ: FLNC). Here's why.
Three engineers in hard hats have a discussion while standing in an industrial facility.
Image source: Getty Images.
1. Robust demand for energy from data centers has been a powerful tailwind for GE Vernova
When it comes to powering the next generation of AI data centers, GE Vernova is emerging as a massive winner. The company spun off from General Electric (now GE Aerospace) in 2024, and it specializes in designing, manufacturing, and servicing energy solutions for power, grid reliability, and renewable energy. As a global leader in electric power infrastructure, its technology provides roughly 25% of the world's electricity.
GE Vernova benefits massively from the growing demand from hyperscalers for its power solutions, notably its gas turbines. These are particularly appealing to data center operators because they allow them to bring their own power and avoid straining the power grid, which is becoming a more contentious issue as more data centers go online and consumers' power bills rise.
GE Vernova's backlog exceeds $163 billion across its power and electrification segments, and its gas turbine queue is over 100 gigawatts (GW). Its backlog represents long-term contracts and reservation agreements, and its capacity is sold out for years as hyperscalers pay an up-front premium to reserve slots years in advance.
One caution for GE Vernova is that its valuation is elevated. The stock has surged 126% over the past year and is priced at 35.5 times its projected 2026 earnings per share (EPS) of $29.21. The high valuation exposes it to volatility but also reflects strong growth prospects. Analysts covering the company project EPS could surge to $44.49 by 2029, representing a four-year compound annual growth rate of 25%.
The stock isn't cheap, but the company continues to see robust demand for its products well into the future. Its gas turbine business is crushing it, and the company also has a longer-term upside from its development of small modular nuclear reactors. As AI data centers continue to grow, GE Vernova is a stock that can ride this wave higher.
2. Growing support for nuclear energy provides a strong backdrop for BWX Technologies
Nuclear is one source of energy that could help meet the growing demand for electricity with no carbon emissions. Nuclear energy is regaining favor, and the U.S. aims to aggressively quadruple its nuclear capacity by 2050. An expansion this large would require massive investment and a huge build-out of nuclear energy infrastructure and its components.
That's where BWX Technologies has its growth opportunity. The company doesn't mine uranium or own nuclear power plants. But it does provide specialized, complex, high-precision equipment used in nuclear reactors, including steam generators, reactor pressure vessels, and piping.
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While the nuclear energy build-out provides upside for BWX, the company also generates a steady revenue stream from its role as the sole nuclear fuel provider to the U.S. Navy. For over 70 years, the company, through its subsidiary Nuclear Fuel Services, has been the exclusive supplier for Navy aircraft carriers and submarines. Because of the complexity and sensitivity of military-grade reactor cores, it's difficult to knock BWX off its perch, giving the company a robust competitive advantage.
BWX Technologies has a resilient backlog that will provide cash flow for years to come. The company is also expanding into the small modular reactor (SMR) market, uranium enrichment, and medical isotopes, providing multiple avenues for growth. For investors bullish on the future nuclear energy expansion, BWX Technologies is another excellent industrial stock to own today.
3. Demand from data centers for reliable energy should give Fluence Energy a boost
Building on the theme of data center power demands, Fluence Energy operates at the intersection of renewable energy and reliable power solutions. The company provides grid-scale energy storage solutions (batteries) that help stabilize the electric grid and ensure reliable energy flow alongside intermittent wind and solar energy.
Investors have viewed Fluence as a utility-scale clean energy provider, but it is increasingly seen as a solutions provider for hyperscalers facing grid capacity bottlenecks. To meet this demand, Fluence is developing dedicated battery systems to help keep data centers online and will earn revenue through a mix of product sales from its energy solutions and service fees for managing, maintaining, and supporting its batteries over the long term.
The company has consistently lost money since its 2021 initial public offering (IPO), but that could change with the surging demand from hyperscalers. The company's total order backlog is a record $5.6 billion, and earlier this month, it secured master supply agreements with two hyperscalers. With momentum building for its energy solutions, Fluence Energy is another industrial energy stock to own as it benefits from AI tailwinds going forward.
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Courtney Carlsen has positions in GE Vernova. The Motley Fool has positions in and recommends BWX Technologies, Fluence Energy, and GE Vernova. The Motley Fool has a disclosure policy.
Source: “AOL Money”
