Optical Cable Corporation OCC and Preformed Line Products Company PLPC have significantly outperformed the broader technology sector over the past year, with their shares surging 257.3% and 131.9%, respectively, compared with the sector's 28.7% gain.
The impressive gains have been driven by company-specific execution as both businesses capitalize on favorable long-term infrastructure trends. While the stocks have already delivered outsized returns, investors may be evaluating whether the underlying fundamentals can continue supporting further upside.
Here's a closer look at the factors strengthening the long-term investment case for each company.
OCC Gains From Data Center Expansion & Higher Profitability
Optical Cable is benefiting from rising demand across enterprise networking, data centers and harsh-environment applications, enabling the company to improve profitability while building a stronger foundation for future growth.
During the second quarter of fiscal 2026, net sales increased 26.6% year over year to $22.2 million, while gross profit jumped 42.4% to $7.6 million. Gross margin expanded 380 basis points to 34.2%, reflecting stronger manufacturing operating leverage as higher production volumes translated into disproportionately faster profit growth.
The company's growth outlook also improved as its sales order backlog and forward load reached $13.3 million, representing a 27% sequential increase and an improvement of more than 82% from the start of the fiscal year. Management highlighted continued demand from enterprise and multi-tenant data center customers and indicated that existing manufacturing capacity can accommodate additional growth before requiring meaningful expansion. Combined with ongoing AI-driven investment in data center infrastructure, the growing backlog, expanding margins and improving operating leverage provide greater earnings visibility and strengthen OCC's long-term investment outlook.
PLPC Gains From Utility and Communications Infrastructure
Preformed Line Products continues to capitalize on increasing investment in electric grid modernization and communications infrastructure, supported by broad-based demand across its end markets and disciplined operational execution.
First-quarter 2026 net sales rose 19% year over year to $176.3 million, driven primarily by 26% growth in U.S. sales, including a 41% increase in energy market revenues. Every operating segment recorded year-over-year growth, while gross profit margin improved to 31.3%, expanding 150 basis points sequentially despite tariff-related cost pressures. Management attributed the margin improvement to effective pricing actions, supply-chain optimization and ongoing operational efficiency initiatives.
Beyond near-term financial performance, PLPC maintains a strong balance sheet and ample liquidity, providing the flexibility to pursue acquisitions, invest in manufacturing facilities, expand engineering and sales capabilities and continue returning capital to shareholders. With exposure to utility upgrades, communications network expansion and international infrastructure investment, the company appears well-positioned to benefit from long-term spending trends while supporting sustained earnings growth and shareholder value creation.
Final Thoughts
Optical Cable and Preformed Line Products have substantially outperformed the broader technology sector over the past year, but their investment cases extend beyond share-price appreciation. OCC is benefiting from accelerating data center demand, a rapidly expanding backlog and improving operating leverage, while PLPC continues to capitalize on long-term investments in electric grid and communications infrastructure through disciplined execution and solid profitability.
Although both companies remain exposed to shifts in enterprise and infrastructure spending, their strengthening fundamentals and favorable industry positioning suggest they remain worthwhile stocks for investors to monitor.
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This article originally published on Zacks Investment Research (zacks.com).