Vertiv Holdings Co. (VRT) Exceeds Market Returns: Some Facts to Consider
Vertiv Holdings Co. (VRT) ended the recent trading session at $77.84, demonstrating a +1.01% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 1.25%.
The the stock of company has risen by 24.25% in the past month, leading the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of Vertiv Holdings Co. in its upcoming release. It is anticipated that the company will report an EPS of $0.36, marking a 50% rise compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.35 per share and revenue of $7.63 billion, indicating changes of +32.77% and +11.18%, respectively, compared to the previous year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.57% higher. Vertiv Holdings Co. currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Vertiv Holdings Co. is currently being traded at a Forward P/E ratio of 32.74. This represents a premium compared to its industry's average Forward P/E of 26.71.
Meanwhile, VRT's PEG ratio is currently 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.41.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
