Vertiv Holdings Co. (VRT) closed at $138.47 in the latest trading session, marking a +2.69% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the company have appreciated by 1.33% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.88%, and the S&P 500's gain of 2.32%.
Investors will be eagerly watching for the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.99, signifying a 30.26% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.57 billion, indicating a 24.13% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.82 per share and revenue of $9.97 billion. These totals would mark changes of +34.04% and +24.47%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Vertiv Holdings Co. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Vertiv Holdings Co. holds a Zacks Rank of #2 (Buy).
Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 35.27. This signifies a premium in comparison to the average Forward P/E of 17.17 for its industry.
We can additionally observe that VRT currently boasts a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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