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Vertiv Holdings Co. (VRT) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Vertiv Holdings Co. (VRT - Free Report) standing at $108.47, reflecting a -3.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.63%.

The company's shares have seen an increase of 10.84% over the last month, not keeping up with the Computer and Technology sector's gain of 11.3% and outstripping the S&P 500's gain of 6.29%.

The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.82, marking a 22.39% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.27 billion, indicating a 16.48% increase compared to the same quarter of the previous year.

VRT's full-year Zacks Consensus Estimates are calling for earnings of $3.55 per share and revenue of $9.51 billion. These results would represent year-over-year changes of +24.56% and +18.71%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertiv Holdings Co. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Vertiv Holdings Co. presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Vertiv Holdings Co. is presently trading at a Forward P/E ratio of 31.57. This indicates a premium in contrast to its industry's Forward P/E of 19.39.

We can additionally observe that VRT currently boasts a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.14 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% 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.

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


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