Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Thermon (NYSE: THR) and the best and worst performers in the electrical systems industry.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 12 electrical systems stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.4% below.

Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.

Thermon (NYSE: THR)

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Thermon reported revenues of $108.9 million, down 5.4% year on year. This print fell short of analysts’ expectations by 11.1%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates and full-year revenue guidance slightly missing analysts’ expectations.

Thermon delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6% since reporting and currently trades at $26.52.

Read our full report on Thermon here, it’s free.

Best Q2: LSI (NASDAQ: LYTS)

Enhancing commercial environments, LSI (NASDAQ: LYTS) provides lighting and display solutions for businesses and retailers.

LSI reported revenues of $155.1 million, up 20.2% year on year, outperforming analysts’ expectations by 11.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 18.8% since reporting. It currently trades at $22.93.

Is now the time to buy LSI? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Whirlpool (NYSE: WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.77 billion, down 5.4% year on year, falling short of analysts’ expectations by 3%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 4.1% since the results and currently trades at $93.85.

Read our full analysis of Whirlpool’s results here.

Vertiv (NYSE: VRT)

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Vertiv reported revenues of $2.64 billion, up 35.1% year on year. This print topped analysts’ expectations by 12%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Vertiv pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 10.7% since reporting and currently trades at $127.55.

Read our full, actionable report on Vertiv here, it’s free.

Allegion (NYSE: ALLE)

Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.

Allegion reported revenues of $1.02 billion, up 5.8% year on year. This number beat analysts’ expectations by 1.5%. It was a very strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 10% since reporting and currently trades at $169.80.

Read our full, actionable report on Allegion here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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