Why Vertiv Holdings Co. (VRT) Soared on Wednesday

Insider Monkey
02-27

We recently compiled a list of the 10 Stocks Outperform Wall Street Indices on Wednesday. In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against the other stocks.

The stock market ended on a mixed note on Wednesday, with the Dow Jones the sole loser during the session, as investor caution persisted amid confusing tariff policies from President Donald Trump.

The Dow Jones dropped by 0.43 percent, while in contrast, the S&P and Nasdaq finished in the green territory, albeit the S&P inched up by only 0.01 percent, and the Nasdaq ended higher by 0.26 percent.

On Wednesday, Trump raised hopes for another month of delay for the imposition of tariffs on goods from Mexico and Canada, while signaling a 25-percent reciprocal tariff on European cars and goods.

Meanwhile, ten companies defied the broader market pessimism, posting modest to strong gains during the day.

To come up with Wednesday's top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a group of technicians working on complex data center systems.

Vertiv Holdings Co. (NYSE:VRT)

Vertiv Holdings Co. (NYSE:VRT) grew its share prices for a second day on Wednesday, adding 7.30 percent to finish at $98.61 each as investor sentiment was buoyed by JPMorgan’s reiteration of its positive rating for the company.

In its report, JPMorgan maintained its ‘overweight’ rating and price target of $132 for Vertiv Holdings Co. (NYSE:VRT), which if compared with its latest closing price, would represent a 33-percent premium.

The company also earned an average ‘strong buy’ rating from other analysts, with price targets ranging from $99.5 to $165 apiece.

According to JPMorgan, while the company is facing the threats of DeepSeek, its underlying business conditions remained strongly favorable, adding that the company’s specialization in building and servicing critical infrastructures for data centers, communication networks, and commercial environments is positioned at a different point in the business cycle.

Overall VRT ranks 9th on our list of Wednesday's top gainers. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

Disclosure: None. This article is originally published at Insider Monkey.

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