Vertiv Holdings Co. (VRT) Rises As Market Takes a Dip: Key Facts

Zacks
01-17

Vertiv Holdings Co. (VRT) closed the most recent trading day at $132.59, moving +0.45% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.89%.

Prior to today's trading, shares of the company had gained 15.67% over the past month. This has outpaced the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56% in that time.

The upcoming earnings release of Vertiv Holdings Co. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.84, marking a 50% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.15 billion, up 15.41% from the year-ago period.

Any recent changes to analyst estimates for Vertiv Holdings Co. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.36% higher. Currently, Vertiv Holdings Co. is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Vertiv Holdings Co. is at present trading with a Forward P/E ratio of 36.74. This valuation marks a premium compared to its industry's average Forward P/E of 27.56.

Investors should also note that VRT has a PEG ratio of 1.03 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.55.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.

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