In the latest close session, Vertiv Holdings Co. (VRT) was down 4.05% at $305.58. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
The stock of company has risen by 5.96% in the past month, leading the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Vertiv Holdings Co. in its upcoming release. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 50.53% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.38 billion, up 27.94% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.38 per share and a revenue of $13.73 billion, representing changes of +51.9% and +34.24%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Vertiv Holdings Co. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. Vertiv Holdings Co. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Vertiv Holdings Co. is currently trading at a Forward P/E ratio of 49.93. This indicates a premium in contrast to its industry's Forward P/E of 12.65.
Also, we should mention that VRT has a PEG ratio of 1.37. 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. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.02.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 105, finds itself in the top 43% echelons 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).