Back to top

Image: Bigstock

Vertiv Holdings Co. (VRT) Laps the Stock Market: Here's Why

Read MoreHide Full Article

Vertiv Holdings Co. (VRT - Free Report) ended the recent trading session at $112.85, demonstrating a +0.45% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.32%.

Shares of the company witnessed a gain of 20.17% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.95% and the S&P 500's gain of 5.2%.

Investors will be eagerly watching for the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.82, indicating a 22.39% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.27 billion, indicating a 16.48% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $9.51 billion, which would represent changes of +24.56% and +18.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Vertiv Holdings Co. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Vertiv Holdings Co. holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Vertiv Holdings Co. is currently exchanging hands at a Forward P/E ratio of 31.67. Its industry sports an average Forward P/E of 19.74, so one might conclude that Vertiv Holdings Co. is trading at a premium comparatively.

It is also worth noting that VRT currently has a PEG ratio of 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 2.2 as trading concluded yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vertiv Holdings Co. (VRT) - free report >>

Published in