In the latest close session, Vertiv Holdings Co. (VRT) was down 6.15% at $142.61. The stock trailed the S&P 500, which registered a daily loss of 0.55%. Elsewhere, the Dow saw a downswing of 0.19%, while the tech-heavy Nasdaq depreciated by 0.95%.
Coming into today, shares of the company had gained 21.55% in the past month. In that same time, the Computer and Technology sector gained 9.88%, while the S&P 500 gained 3.64%.
Investors will be eagerly watching for the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.99, showcasing a 30.26% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.57 billion, indicating a 24.13% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.82 per share and a revenue of $9.97 billion, signifying shifts of +34.04% and +24.47%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Vertiv Holdings Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Vertiv Holdings Co. currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 39.75. This valuation marks a premium compared to its industry average Forward P/E of 16.74.
One should further note that VRT currently holds a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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