In the latest trading session, Vertiv Holdings Co. (VRT) closed at $270.06, marking a +2.16% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.
Heading into today, shares of the company had gained 30.87% over the past month, outpacing the Computer and Technology sector's loss of 3.04% and the S&P 500's loss of 2.26%.
The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. The company's upcoming EPS is projected at $1, signifying a 56.25% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, up 30.08% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.15 per share and a revenue of $13.68 billion, representing changes of +46.43% and +33.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.02% higher. Vertiv Holdings Co. is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Vertiv Holdings Co. is currently being traded at a Forward P/E ratio of 42.99. This valuation marks a premium compared to its industry average Forward P/E of 14.05.
Also, we should mention that VRT has a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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