Why Is Regal Rexnord Stock Surging On Tuesday?

Regal Rexnord Corp. (NYSE: RRX ) stock traded higher on Tuesday after Kerrisdale Capital issued a research report announcing a long position in the industrial powertrain leader. The investment firm highlighted the company’s recent portfolio transformation as a primary catalyst for future growth. Shift From Cyclicality To Secular Growth According to the Kerrisdale report, the multi-billion-dollar acquisitions of Rexnord’s Process & Motion Control business and Altra Industrial Motion transformed the $15 billion market capitalization company from a legacy heating, ventilation and air conditioning (HVAC)-heavy business into a high-margin motion control leader. Read Also: Heatwave Strengthens Bullish Case For Utility ETFs, HVAC Stocks Amid Surging Power Demand Data Center Backlog Drives Momentum Kerrisdale stated that the company’s entry into the data center power equipment modules (ePODs)...