Best Data Center Stocks to Watch in 2026

Screening Filters & Rationale

1. Market Cap ≥ $7 billion:

   • Purpose: Focus on large-cap data center companies with established market presence.
   • Rationale: Larger companies tend to have more stable operations and resources to adapt to industry changes.

2. Dividend Yield (TTM) ≥ 1%:

   • Purpose: Identify companies that provide consistent income through dividends.
   • Rationale: Dividend-paying stocks can offer a steady return, appealing to income-focused investors.

3. Gross Margin ≥ 35%:

   • Purpose: Highlight companies with strong profitability and operational efficiency.
   • Rationale: High gross margins indicate effective cost management and pricing power.

4. Revenue 5-Year CAGR ≥ 7%:

   • Purpose: Target companies with consistent revenue growth over the past five years.
   • Rationale: Sustained growth reflects strong demand and competitive positioning in the market.

5. Ticker Selection:

   • Purpose: Narrow down to companies within the data center industry.
   • Rationale: Ensures relevance to the user's interest in data center stocks for 2026.