Vertiv Holdings Co. (VRT) closed at $127.37 in the latest trading session, marking a +2.12% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.4% for the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
Coming into today, shares of the company had gained 7.1% in the past month. In that same time, the Computer and Technology sector gained 6.34%, while the S&P 500 gained 4.97%.
Market participants will be closely following the financial results of Vertiv Holdings Co. in its upcoming release. In that report, analysts expect Vertiv Holdings Co. to post earnings of $0.83 per share. This would mark year-over-year growth of 23.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.28 billion, indicating a 16.52% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.56 per share and a revenue of $9.52 billion, signifying shifts of +24.91% and +18.86%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Vertiv Holdings Co. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.25% higher. Vertiv Holdings Co. presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Vertiv Holdings Co. is currently exchanging hands at a Forward P/E ratio of 35.07. This indicates a premium in contrast to its industry's Forward P/E of 18.97.
It's also important to note that VRT currently trades at a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 1.98 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Vertiv Holdings Co. (VRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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