Back to top

Image: Bigstock

Vertiv Holdings Co. (VRT) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

The most recent trading session ended with Vertiv Holdings Co. (VRT - Free Report) standing at $71.69, reflecting a +1.59% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.

Shares of the company witnessed a gain of 14.8% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.12% and the S&P 500's gain of 4.83%.

The investment community will be paying close attention to the earnings performance of Vertiv Holdings Co. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 50% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.62 billion, indicating a 6.79% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.35 per share and a revenue of $7.63 billion, indicating changes of +32.77% and +11.18%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Vertiv Holdings Co. These revisions help to show the ever-changing nature of near-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.83% increase. Right now, Vertiv Holdings Co. possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Vertiv Holdings Co. is presently being traded at a Forward P/E ratio of 30.02. This indicates a premium in contrast to its industry's Forward P/E of 28.1.

Also, we should mention that VRT has a PEG ratio of 1.17. 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 2.65 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 77, putting it in the top 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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