We recently compiled a list of the Heavy Selling Drags Share Prices of These 10 Firms. In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against the other stocks.

Wall Street’s major indices finished mixed on Wednesday, though generally pessimistic, as investor sentiment was dampened by higher-than-expected consumer price data which fueled concerns of a potential inflation rebound.

The Dow Jones and S&P 500 declined by 0.50 percent and 0.27 percent, respectively. Only Nasdaq posted gains, albeit a marginal 0.03 percent.

Among Wednesday’s losers, 10 companies were the worst performers, primarily due to disappointing earnings results, dismal outlook guidance, and downgraded ratings, among others. In this article, we have detailed the specific reasons behind their lagging performance.

To come up with Wednesday’s top losers, we considered only the stocks with at least $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. saw its share prices drop by 9.74 percent on Wednesday to finish at $111.24 apiece as investors sold off after the company posted lower-than-expected earnings estimates for the first quarter of the year.

Despite improved earnings performance for full year 2024, VRT said it expects earnings per share (EPS) between 57 cents and 63 cents in the first quarter of 2025. Analysts on the other hand targeted adjusted EPS of 64 cents. Meanwhile, adjusted EPS for the full year 2025 was pegged at between $3.5 and $3.6.

Last quarter, VRT also saw net income drop by 36.8 percent to $147 million from $232.6 million year-on-year. However, net income in the full year increased by 7.7 percent to $495.8 million from the $460.2 million registered in 2023.

Overall VRT ranks 2nd on our list of Wednesday's top losers. 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 timeframe. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

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