Shares in data center equipment company Vertiv (VRT -2.35%) rose by 14% in the week ending Friday morning. This is an excellent performance, but the stock is still down more than 40% this year.
Vertiv Holdings, a $24-billion firm, excels in digital infrastructure for data centers and commercial applications, showing strong revenue and profit growth. Despite market turmoil and tariff concerns, Vertiv's diversified operations and robust financials make it a compelling buy to lower average costs. FY2024 saw significant revenue and profit growth, with a promising FY2025 outlook, including a projected 25% EPS increase and $1.3 billion FCF.
We rated Vertiv Holdings stock a "Buy" three weeks ago, far before the tariff threats were this dire. Post-"Liberation day" Wall St. nosedive, it's crucial to reassess Vertiv's performance potential and risk mitigation strategies. Vertiv's fundamentals remain strong, supporting its resilience and growth prospects, and we can improve our modeling due to the extra data available to us and the improved models we have created.
Zacks.com users have recently been watching Vertiv (VRT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Shares in data center equipment company Vertiv Holdings (VRT 2.54%) declined by 24.1% in March, according to data provided by S&P Global Market Intelligence. Given the large slump in the share price on March 26, there's little doubt that Vertiv's stock is being negatively impacted by tariff actions and bans on foreign companies buying U.S. technology.
VRT's strong portfolio and rich partner base, along with growing demand for AI infrastructure, are driving growth despite tariff concerns and stretched valuation.
Shares in data center equipment maker Vertiv Holdings (VRT -10.79%) tumbled more than 11% by 3 p.m. today. The decline comes after a general sell-off in the AI/data center sector following the news that the U.S. is banning 80 companies, including many in China, from buying U.S. technology.
The AI gold rush is in full swing, but the real winners may not be the chipmakers themselves but the infrastructure players powering the next-gen data centers.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Vertiv (VRT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
It's no secret that artificial intelligence (AI)-related stocks have sold off in the recent market correction. It's partly due to investors locking in gains, competitive concerns relating to Chinese start-up DeepSeek, and, most notably, valuation concerns.
Vertiv has had a recent price dip due to tariff wars and macroeconomic pressure. At a P/E of 69.7, they are at a premium against the industry average of 25-30, but Vertiv's forward P/E is 23.4 which sees them discounted heavily. DCF modeling has a weak discount correlation, but needs to be reinforced by other modeling like P/E ratios.