Oppenheimer Names Four Power Technology Stocks for Selective Trading
Power technology stocks are entering the third-quarter 2026 earnings season with a complicated mix of strong structural demand and rising operating pressures. Against that backdrop, Oppenheimer analyst Colin Rusch has highlighted four stocks for selective trading, with a preference for companies exposed to power management and labor-saving technologies.
The four names are GE Vernova (NYSE: GEV), American Superconductor (NASDAQ: AMSC), Shoals Technologies Group (NASDAQ: SHLS) and Ormat Technologies (NYSE: ORA). Oppenheimer's view is not a blanket bullish call on the entire power sector. Instead, the firm expects investors to be selective because companies face different combinations of demand, costs, policy exposure and project economics.
That distinction is important as electricity demand continues to rise, particularly from data centers and other large industrial users, while the infrastructure needed to meet that demand faces shortages of equipment and skilled labor.
Why Oppenheimer Is Selective on Power Technology Stocks
The power technology industry is benefiting from a fundamental increase in electricity demand, but the growth is creating its own challenges.
Oppenheimer identified several factors that could produce uneven results during the third-quarter earnings season. Strong demand for utility-scale and distributed power is pushing up material costs, while data-center construction is tightening the labor market.
Interest rates are another pressure point. Higher financing costs can make large power and infrastructure projects more expensive, potentially affecting project timelines and customer spending.
At the same time, U.S. policy is increasingly emphasizing domestic manufacturing and supply chains. That could benefit companies with significant U.S. production capabilities while putting pressure on businesses that rely more heavily on imported equipment.
The result is a sector where revenue growth alone may not tell the whole story. Investors need to examine pricing power, project economics, labor productivity and exposure to policy changes.
1. GE Vernova: Oppenheimer's Top Power Technology Pick
GE Vernova ranks first on Oppenheimer's list.
The company is positioned across electricity generation, power conversion and grid infrastructure, giving it exposure to several parts of the expanding power ecosystem.
One of the key factors highlighted by Oppenheimer is U.S. policy aimed at restricting imports of certain bulk-power equipment from China. The firm believes this could strengthen the position of domestic manufacturers and potentially improve pricing power for GE Vernova.
That is particularly relevant because the U.S. needs to expand and modernize its electricity infrastructure at a time when data centers and other high-power applications are increasing demand.
For investors, the attraction is therefore broader than a single quarterly earnings result. GE Vernova potentially sits at the intersection of grid investment, electricity demand growth and reshoring of critical power equipment.
However, valuation is an important consideration. A strong long-term industry outlook does not automatically mean the stock will rise in the short term. Investors should compare expectations already reflected in the share price with actual order growth, margins and guidance.
2. American Superconductor: Benefiting From Domestic Power Equipment Demand
American Superconductor, or AMSC, is Oppenheimer's second-ranked power technology stock.
The company develops technologies used in power-grid and industrial applications, giving it exposure to the broader modernization of electricity infrastructure.
Oppenheimer sees AMSC as another potential beneficiary of the shift toward domestic suppliers following U.S. restrictions on certain bulk-power equipment imports from China.
AMSC is a considerably smaller company than GE Vernova, which means changes in customer demand and investor expectations can have a more pronounced effect on its share price.
Its stock has also already experienced substantial gains over longer periods. Market data show AMSC had gained roughly 49% over the year through October 5, while its three-year gain was considerably larger.
That performance illustrates both the opportunity and the risk. Investors may be attracted to the company's exposure to grid modernization, but a stock that has already appreciated significantly can also be sensitive to earnings disappointments or changes in expectations.
3. Shoals Technologies: Labor Savings Become More Valuable
Oppenheimer ranks Shoals Technologies Group third among its preferred power technology stocks.
The company's positioning is somewhat different from the first two names. Shoals provides electrical balance-of-system solutions for solar projects, with technologies designed to simplify installation and improve efficiency.
That becomes particularly relevant when construction labor becomes more expensive.
Oppenheimer noted that construction wage growth accelerated to 4.4% year over year, while wages for electrical and powerline workers increased even faster, by 7.3% and 7.7%, respectively.
When labor costs rise, technologies that allow projects to be installed faster or with fewer labor hours can become more economically attractive.
Shoals therefore offers investors exposure to a different part of the power investment cycle: rather than simply benefiting from higher electricity demand, its potential advantage comes from helping customers manage the cost of building energy infrastructure.
The company also reported a record backlog in its second-quarter 2026 update, another factor investors will likely watch as the sector enters the next earnings season.
4. Ormat Technologies: Exposure to Power Management and Geothermal Energy
The fourth name on Oppenheimer's list is Ormat Technologies.
Ormat has significant exposure to geothermal power and related energy infrastructure. Oppenheimer included the company among its preferred selective-trading opportunities because of its exposure to power management solutions in a market facing rapidly changing electricity demand.
Ormat also gives investors a somewhat different form of power-sector exposure compared with GE Vernova and AMSC.
Its geothermal business provides electricity generation from a renewable resource that can operate independently of weather conditions affecting solar and wind generation. That characteristic can make geothermal power strategically interesting as electricity systems search for reliable low-carbon generation.
At the same time, the stock faces its own valuation and execution considerations. Investors should therefore evaluate Ormat based on project development, electricity generation growth, margins and capital requirements rather than simply treating it as another AI-power beneficiary.
The Bigger Theme: Data Centers Are Reshaping Power Markets
A major theme behind Oppenheimer's analysis is the growing electricity requirement associated with data-center construction.
AI infrastructure is driving investment in large data centers, which require substantial amounts of electricity and grid capacity. That is increasing demand for generation equipment, transmission infrastructure, electrical components and technologies that can make construction more efficient.
But the same boom is also creating bottlenecks.
Oppenheimer noted that U.S. wholesale power prices remained significantly higher year over year in major markets, with prices in PJM up 42% and SPP up 23%, even as natural-gas prices declined by mid-single-digit percentages.
Higher power prices can encourage investment in generation and grid infrastructure, but they can also increase operating costs for electricity-intensive businesses.
This creates a complicated environment for investors: rising demand is positive for equipment manufacturers, but shortages of labor, materials and financing can reduce the speed at which that demand turns into profitable projects.
What Investors Should Watch During Q3 Earnings
The upcoming earnings season will be an important test of Oppenheimer's thesis.
Investors should look beyond headline revenue growth and focus on:
Order intake and backlog
Gross and operating margins
Pricing power
Material-cost inflation
Labor availability and wage pressure
Data-center-related demand
U.S. manufacturing investment
Project financing conditions
Management guidance for the remainder of 2026
For GE Vernova and AMSC, policy-driven changes in the supply chain could be particularly important. For Shoals, labor productivity and solar-project activity deserve close attention. For Ormat, investors should monitor project execution and electricity-generation growth.
Risks Behind the Power Technology Trade
Oppenheimer's selective approach is a reminder that the power technology boom is not risk-free.
Higher interest rates can weaken the economics of capital-intensive infrastructure projects. Rising material costs can pressure margins, while shortages of skilled workers can delay construction.
Policy changes also create uncertainty. Domestic-manufacturing incentives can benefit U.S. suppliers, but changes in trade policy, tariffs or government priorities can alter the competitive landscape.
Finally, valuation risk matters. Investors may already be pricing substantial future electricity-demand growth into some power technology stocks. If earnings or guidance fail to keep pace with those expectations, even companies operating in attractive markets can experience sharp share-price declines.
Bottom Line
Oppenheimer's latest sector view favors GE Vernova, American Superconductor, Shoals Technologies and Ormat Technologies for selective trading as the power technology industry heads into third-quarter 2026 earnings.
The common theme is rising demand for electricity and the infrastructure needed to deliver it, particularly as data-center construction accelerates. But higher material costs, expensive labor, interest rates and changing U.S. trade policies mean investors cannot assume every power stock will benefit equally.
For investors tracking the sector, the most important signals will be earnings, backlog, margins and management guidance. The companies that can convert rising electricity demand into profitable orders while controlling costs may have the strongest operating setup.
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This article is for informational and educational purposes only and should not be considered investment advice.