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Strength Seen in Vertiv Holdings Co. (VRT): Can Its 8.6% Jump Turn into More Strength?

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Vertiv Holdings Co. (VRT - Free Report) shares rallied 8.6% in the last trading session to close at $10.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.3% loss over the past four weeks.

Vertiv benefits from strong end-market demand which is driving top-line growth.

This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -64.5%. Revenues are expected to be $1.34 billion, up 6.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Vertiv Holdings Co., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VRT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Vertiv Holdings Co. belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Telos Corporation (TLS - Free Report) , closed the last trading session 2.7% lower at $8.28. Over the past month, TLS has returned -9.1%.

Telos Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of -175%. Telos Corporation currently boasts a Zacks Rank of #3 (Hold).


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