After carrying the stock market higher over the last two years, Vertiv ( VRT ) and Nvidia ( NVDA ), two of the best performing stocks in the market, have been hammered lower by the recent stock market correction. Trade policy uncertainty, cutbacks on fiscal spending and a potential slowdown in the economy have investors feeling uneasy, adding to the volatility.
It's been a while since data center equipment company Vertiv's (VRT 0.56%) stock looked like a great value, but that time has come around again. The ongoing demand for artificial intelligence (AI) applications creates unprecedented data growth, which only means more investment in data centers.
Vertiv is inherently undervalued after the deep pullback, presenting a strong buy opportunity due to the robust fundamentals, expanding profit margins, and healthier balance sheet. This is especially given the increased demand for power, cooling, and IT infrastructure solutions during the multi-year cloud super cycle, as similarly reiterated by numerous top hyperscalers. The same has been observed in VRT's growing backlog and higher TTM organic orders, with it already contributing to the rich FY2025 guidance.
I am upgrading Vertiv Holdings Co to a buy due to strong EPS growth and undervaluation despite recent stock underperformance. Vertiv's Q4 non-GAAP EPS of $0.99 beat expectations, with revenue up 26% YoY and a robust backlog of $7.2 billion. Key risks include potential order growth lag in EMEA and data center spending slowdown, but strong free cash flow and EPS upgrades bolster confidence.
Vertiv (VRT -2.68%) is at the epicenter of the boom in spending on data centers optimized for artificial intelligence.
Recently, Zacks.com users have been paying close attention to Vertiv (VRT). This makes it worthwhile to examine what the stock has in store.
According to data provided by S&P Global Market Intelligence, shares in data center infrastructure company Vertiv (VRT -0.04%) declined by 18.7% in February. The decline is due to two interconnected factors.
VRT's strong portfolio and rich partner base, along with growing demand for AI infrastructure, are driving growth.
Vertiv Holdings Co. (VRT) closed at $86.39 in the latest trading session, marking a +1.15% move from the prior day.
Vertiv Holdings ( VRT ) is a $36 billion provider of critical digital infrastructure solutions, including datacenter power and thermal management. Vertiv grew revenues 20% in 2023, 16.6% in 2024, and this year is expected to top $9.2 billion for 15% growth.
Shares of artificial intelligence (AI) and AI-adjacent stocks such as Taiwan Semiconductor Manufacturing (TSM -4.19%), Arista Networks (ANET -7.57%), and Vertiv Holdings (VRT -10.26%) were all down big on Monday, falling 4.7%, 8.3%, and 10.5%, respectively, as of 3:52 p.m. ET.
Recently, Zacks.com users have been paying close attention to Vertiv (VRT). This makes it worthwhile to examine what the stock has in store.