Back to top

Image: Bigstock

Why Vertiv Holdings Co. (VRT) Outpaced the Stock Market Today

Read MoreHide Full Article

Vertiv Holdings Co. (VRT - Free Report) closed the most recent trading day at $124.33, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.94%.

Shares of the company have appreciated by 9.08% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.61%, and the S&P 500's gain of 5.13%.

Analysts and investors alike will be keeping a close eye on the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.82, reflecting a 22.39% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.28 billion, indicating a 16.52% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $9.52 billion, which would represent changes of +24.91% and +18.79%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Vertiv Holdings Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.37% higher. Vertiv Holdings Co. is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Vertiv Holdings Co. is currently being traded at a Forward P/E ratio of 34.41. This denotes a premium relative to the industry average Forward P/E of 20.

We can additionally observe that VRT currently boasts a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 17% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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