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Vertiv Holdings Co. (VRT) Falls More Steeply Than Broader Market: What Investors Need to Know

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Vertiv Holdings Co. (VRT - Free Report) ended the recent trading session at $75.06, demonstrating a -0.19% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

Prior to today's trading, shares of the company had gained 8.56% over the past month. This has outpaced the Computer and Technology sector's gain of 1.63% and the S&P 500's gain of 3.64% in that time.

Investors will be eagerly watching for the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. In that report, analysts expect Vertiv Holdings Co. to post earnings of $0.70 per share. This would mark year-over-year growth of 34.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, up 13.53% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.58 per share and revenue of $7.74 billion, which would represent changes of +45.76% and +12.77%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Vertiv Holdings Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Vertiv Holdings Co. presently features a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Vertiv Holdings Co. is currently being traded at a Forward P/E ratio of 29.09. This signifies a premium in comparison to the average Forward P/E of 27.03 for its industry.

Investors should also note that VRT has a PEG ratio of 0.98 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. VRT's industry had an average PEG ratio of 3.01 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VRT in the coming trading sessions, be sure to utilize Zacks.com.


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