AAON stock jumped 37.8% in the week ending Thursday, Nov. 12, closing at $78.80, according to data from S&P Global Market Intelligence. Over the same period the S&P 500 gained 2.9% and the Nasdaq-100 rose 4.8%. The rally followed a strong third-quarter report that drove the company's shares higher.

The HVAC maker reported third-quarter net sales of $707.4 million, up 84.1% year over year and well above analyst expectations of $601.2 million. Adjusted earnings per share reached $0.83, more than double the prior-year figure of $0.37. Sales from its BASX brand, which makes specialized liquid-cooling equipment for artificial intelligence data centers, surged 218% to $397.2 million.S4

AAON manufactures custom heating, ventilation and air conditioning equipment along with liquid-cooling systems for commercial, industrial and data center customers. Demand for high-density computing requires heavy-duty thermal management to prevent server overheating, and the rapid ramp-up in data center orders accelerated total sales. Management raised its full-year sales growth forecast to 72%-75%.S4

The company also disclosed a material weakness in internal controls over financial reporting, which required a restatement of first-half results; the adjustment added $10.7 million to revenue. Management expanded its senior credit facility to $1.2 billion to fund factory capacity. AAON stock trades at a trailing price-to-earnings ratio of 32.3, compared with a five-year average of 48, and investors will be watching fourth-quarter results due March 1, 2027.S4