In the latest trading session, Vertiv Holdings Co. (VRT) closed at $123.80, marking a +1.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw an upswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.97%.
Prior to today's trading, shares of the company had gained 11.37% outpaced the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.
The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. On that day, Vertiv Holdings Co. is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 22.39%. Simultaneously, our latest consensus estimate expects the revenue to be $2.27 billion, showing a 16.48% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.55 per share and revenue of $9.51 billion, indicating changes of +24.56% and +18.71%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Vertiv Holdings Co. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Vertiv Holdings Co. currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Vertiv Holdings Co. is presently trading at a Forward P/E ratio of 34.29. This signifies a premium in comparison to the average Forward P/E of 19.9 for its industry.
Also, we should mention that VRT has a PEG ratio of 1.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.09.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 20% of all industries, numbering over 250.
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.
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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