In the latest trading session, Vertiv Holdings Co. (VRT) closed at $162.01, marking a -1.42% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.76%.
Prior to today's trading, shares of the company had lost 9.16% lagged the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.28, reflecting a 29.29% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.86 billion, up 22.09% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.11 per share and a revenue of $10.22 billion, signifying shifts of +44.21% and +27.53%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Vertiv Holdings Co. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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. presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 39.94. For comparison, its industry has an average Forward P/E of 17.48, which means Vertiv Holdings Co. is trading at a premium to the group.
It's also important to note that VRT currently trades at a PEG ratio of 1.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.82.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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