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Vertiv Holdings Co. (VRT) Dips More Than Broader Market: What You Should Know

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In the latest close session, Vertiv Holdings Co. (VRT - Free Report) was down 6.09% at $222.83. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.

Prior to today's trading, shares of the company had gained 1.14% lagged the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.

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 upcoming EPS is projected at $1.83, signifying a 47.58% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.77 billion, indicating a 40.92% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.69 per share and a revenue of $14.01 billion, indicating changes of +59.29% and +36.91%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertiv Holdings Co. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

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, 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Vertiv Holdings Co. is currently a Zacks Rank #3 (Hold).

Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 35.46. This signifies a premium in comparison to the average Forward P/E of 14.13 for its industry.

We can additionally observe that VRT currently boasts a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.33 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.

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

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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