We recently compiled a list of the Why These 15 Stocks Are Skyrocketing in 2025. In this article, we are going to take a look at where IES Holdings (NASDAQ:IESC) stands against the other stocks.

Stock gains always get people talking, and 2025 is no exception. Markets have moved higher for a while due to a shift toward tech innovation. The pace might slow after two years of significant returns, but investors have regained their confidence after the Stargate project was announced.

Small and mid-sized companies have started to pick up pace recently and are landing on investors’ radars as mega-cap stocks are now trading at nosebleed valuations. These companies have higher growth potential than their mega-cap rivals, and that explains the sudden surge of interest.

Smaller and mid-tier stocks did face challenges in prior years when corrections and interest rate hikes weighed on market sentiment. However, now that inflation seems more contained and Trump pushes for more rate cuts, things look even better for these mid-sized stocks.

Methodology

For this article, I screened the top-performing stocks year-to-date in the $5 billion to $20 billion market capitalization bracket. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

A construction site with heavy equipment and people in hard hats working on the next infrastructure project.

IES Holdings (NASDAQ:IESC)

Number of Hedge Fund Holders In Q3 2024: 25

IES Holdings (NASDAQ:IESC) provides electrical systems in the U.S. The company also sells them to the booming data center industry.

IESC stock has increased significantly so far in 2025 due to its announcement that it doubled its revolving credit facility from $150 million to $300 million and extended the maturity date to 2030. Moreover, it switched from an asset-based structure to one that is cash-flow based which will allow it to borrow more easily.

It also released its 2024 full-year earnings. Revenue grew 21% year-over-year to $2.9 billion, and net income doubled to $219.1 million, up from $108.3 million in 2023. Not only that, management commented that there was strong demand from data centers.

Analyst coverage is pretty limited here.

IESC stock is up 35.9% year-to-date.

Overall IESC ranks 5th on our list of the stocks that are skyrocketing in 2025. While we acknowledge the potential of IESC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IESC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Smid-Cap Stocks So Far In 2025

 

Disclosure: None. This article was originally published at Insider Monkey.