3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term
Key Points
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Comfort Systems USA is scaling modular data center builds with a strong backlog and demand visibility.
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Watts Water Technologies and Mueller Water Products are adding high-margin, tech-enabled revenue streams.
Something is going on in industrials that most retail investors seem to be overlooking. While attention stays fixed on software multiples, a group of companies building the physical backbone to services growing artificial intelligence (AI) processing and everyday infrastructure is quietly delivering strong earnings growth.
These companies are building their margins and locking in long-term demand that isn’t tied to short-term cycles. Here are three great industrials-related growth stocks I think are worth owning for the long haul.
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1. Comfort Systems USA
Comfort Systems (NYSE: FIX) doesn’t show up on most people’s radars because “mechanical contractor” isn’t a phrase that gets clicks. But I think that framing is completely outdated. What Comfort Systems actually does is build the physical AI layer, the high-density liquid cooling, electrical distribution, and modular mechanical systems that keep hyperscale data centers from overheating.
In 2025, technology-related projects accounted for 42% of the company’s year-to-date revenue, up from 37% a year earlier. The company’s backlog hit $9.38 billion as of Q3 2025 — 65% higher than the same period in 2024.
To meet that demand, management is expanding its modular construction footprint from 3 million to 4 million square feet by the end of 2026, with new facilities in Texas and North Carolina that incorporate robotics and automation to improve the scalability of output.
What separates Comfort Systems from a generic contractor is exactly this: It has turned data center construction into a product line rather than a project. Its modular, off-site approach cuts build times by 20% to 30% and gives hyperscalers the speed they need.
The book-to-bill ratio currently sits at a healthy 1.13x, meaning Comfort Systems is taking in more work than it’s completing. The stock price is already trading up 277% over the past year, which has pushed its trailing 12-month price-to-earnings ratio to a somewhat expensive 46. But the book-to-bill ratio suggests there is still a lot of growth potential ahead for this stock, justifying the premium.
2. Watts Water Technologies
Watts Water Technologies (NYSE: WTS) sits in a corner of the industrials sector (flow control, valves, heating, water treatment) that sounds slow and boring. It is, in fact, neither. It just reported a record Q4 2025 revenue of $625 million, up 16% year over year, with an adjusted operating margin of 19%, up 220 basis points. Full-year revenue reached $2.4 billion.
The angle most people are missing: Watts is becoming a quiet beneficiary of the AI infrastructure boom through its liquid-cooling valve systems. Data center sales grew double digits in 2025 and now represent over 3% of total revenue, with the company explicitly targeting that segment as its fastest-growing initiative for 2026.
As AI clusters shift from air-cooled to liquid-cooled architectures — a transition that is happening fast — Watts’s stainless steel cooling valves and flow management systems are right at the inflection point.
CEO Robert Pagano has layered two meaningful acquisitions on top of this organic story: Superior Boiler and Saudi Cast, together adding roughly $80 million in annual revenue and expected to be accretive to EPS in 2026. The company’s forward guidance calls for 8% to 12% reported sales growth.
The stock is up 35% over the past year and trades at a reasonable P/E of 28, given its growth. I think this ticker is undervalued due to its exposure to the AI industry. It should grow as AI grows.
3. Mueller Water Products
Mueller Water Products (NYSE: MWA) is the least glamorous of the three names featured here. The company makes fire hydrants, gate valves, and water distribution infrastructure. But it’s been building a technology layer on top of its hardware for the past several years, and I think it’s going to matter a lot.
Through its Mueller Systems division, the company offers acoustic leak detection sensors, advanced metering infrastructure (AMI), and software platforms that let municipalities move from reactive pipe replacement to predictive, data-driven maintenance.
This isn’t bolt-on software. It’s a service layer that deepens customer relationships, creates switching costs, and generates recurring revenue — the kind of thing that rerates a multiple over time. The stock trades down about 4% over the past year, with a reasonable trailing P/E of 21.7. The company also has a pristine balance sheet: total cash of $459.6 million against total debt of $452.3 million, with no material maturities before June 2029.
I’m excited to see what acquisitions Mueller makes next and how the company continues to build on its growth trajectory. Buying now gets long-term investors in at a small discount.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.
