Vertiv Holdings Co. (VRT) Rises as Market Plunges: Key Facts

In the latest trading session, Vertiv Holdings Co. (VRT) closed at $106.73, marking an adjustment of +1.45% from last day’s closing price. The stock outperformed the S&P 500, which lost 0.96% on the day. Meanwhile, the Dow was down 0.94% and the tech-dominated Nasdaq was down 1.18%.

The company's shares gained 46.58% over the past month, outpacing the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.

The investing community will be closely watching Vertiv Holdings Co.'s earnings performance in its upcoming release. On that day, Vertiv Holdings Co. is expected to report earnings of $0.71 per share, which would represent year-over-year growth of 36.54%. Our most recent consensus estimate is calling for quarterly revenue of $1.98 billion, up 13.65% from the year-ago period.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $7.75 billion, representing changes of +46.33% and +12.88%, respectively corresponds to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertiv Holdings Co. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upward estimate revisions reflect analysts' positive view on the company's operations and ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term share price performance. To capitalize on this, we have developed the Zacks Rank, a unique model which takes these estimate changes into account and provides a practical 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% generated. Over the past month, there has been a 0.21% increase in the Zacks Consensus EPS estimate. Vertiv Holdings Co. currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Vertiv Holdings Co. is currently trading at a Forward P/E ratio of 40.62. This represents a premium compared to its industry's average Forward P/E of 28.42.

It is also important to note that VRT is currently trading at a PEG ratio of 1.37. The PEG ratio is similar to the commonly used P/E ratio, but this metric also takes into account the company's expected earnings growth rate. Computer – IT Services stocks have an average PEG ratio of 2.79 based on yesterday's closing prices.

The story continues

The Computer – IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank is ranked from best to worst in terms of the average Zacks Rank of the individual companies in each of these sectors. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

For more information on all of these metrics and much more, visit Zacks.com.

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