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Is This Beaten Down AI Stock a Buy?

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Key Takeaways

  • Vertiv shares have struggled in 2025 amid the cooldown in AI stocks.
  • The company is on deck to report quarterly results this week.
  • Analysts have taken a bearish stance on its EPS outlook.

The AI trade has cooled off significantly in 2025, a stark turnaround after big gains that spanned several years. While many have recalculated their bets, the staying power of AI is undeniable, and it will undoubtedly remain a focal point within the market for years to come.

A company in the middle of the frenzy, Vertiv (VRT - Free Report) , is on the reporting docket this week, with its results scheduled to come before the market’s open on Wednesday, April 21st.

Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.

Let’s take a closer look at what to expect in the release.

Vertiv Earnings

VRT shares have cooled off significantly in 2025, down more than 40% and widely underperforming relative to the S&P 500. Its latest set of quarterly results caused further downward pressure, with shares seeing a negative reaction post-earnings.

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Image Source: Zacks Investment Research

Notably, EPS and sales expectations have primarily remained unchanged over recent months, with the Zacks Consensus EPS estimate of $0.62 suggesting 44% growth year-over-year. Sales growth is also expected to be strong, with the current $1.9 billion consensus estimate 17% higher than the same period last year.

The company’s top line strength has been remarkable over recent periods, fueled by the unrelenting demand for its services needed amid the AI frenzy.

Zacks Investment Research
Image Source: Zacks Investment Research

The valuation picture here has also come back down to earth, with the current 19.8X forward 12-month earnings multiple comparing favorably to the 43.9X five-year high made just this year. The current PEG ratio works out to 0.7X, again below the 1.4X five-year high.

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Image Source: Zacks Investment Research

In addition, Vertiv is currently a Zacks Rank #4 (Sell), reflecting downward trending estimate revisions among analysts. While the valuation picture may appear attractive, investors should wait until positive earnings estimate revisions roll in, which would signal a bullish change in sentiment overall.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

A favorite during the AI frenzy, Vertiv (VRT - Free Report) has struggled in 2025, with shares down big amid the broader sell-off in technology.

This week, the company will report its quarterly results, with guidance and commentary to be the key factors that dictate the post-earnings move. It’s reasonable to assume that the company is still witnessing big demand, which could also provide a bit of reassurance to the broader AI trade overall.


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