SPX Technologies signals $1.1B data center capacity and lifts 2026 adjusted EPS midpoint to $8.40
News of expanded data center capacity and an upward adjustment of the 2026 adjusted EPS median. SPX Technologies has secured $1.1 billion in data center capacity, enhancing its profitability outlook.
The upward revision of earnings forecasts and positive news related to data centers are expected to create strong momentum. Recently, the stock price experienced volatility, plummeting to $187.57 between July 29 and 30, but rebounded significantly on July 31 with an opening price of $213.69, indicating a recovery trend, which supports the consideration for entry.
With the earnings announcement accompanied by strong upward momentum, we expect increased upside volatility. Therefore, we will take profits if the price reaches the resistance level of $220.0, and we will cut losses if the support level of $185.0 is breached.
The prediction of increased upside volatility following the earnings announcement proved accurate. The stock surged beyond the target price of $220.0, reaching $227.87, resulting in a successful completion with a return of 15.1%, significantly exceeding the forecasted return of 5.0%.
We will maintain the ability to capture patterns of strong rebounds after sharp declines in stock prices accompanied by positive news, while continuously reviewing the appropriateness of target price settings during periods of increased volatility.