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Vertiv Holdings Co. (VRT) Stock Drops Despite Market Gains: Important Facts to Note

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Vertiv Holdings Co. (VRT - Free Report) closed at $111.25 in the latest trading session, marking a -1.2% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

Coming into today, shares of the company had lost 16.02% in the past month. In that same time, the Computer and Technology sector lost 1.35%, while the S&P 500 gained 1.02%.

Investors will be eagerly watching for the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2025. In that report, analysts expect Vertiv Holdings Co. to post earnings of $0.84 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.15 billion, up 15.37% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Vertiv Holdings Co. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 0.02% lower. Vertiv Holdings Co. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Vertiv Holdings Co. is presently trading at a Forward P/E ratio of 31.46. This indicates a premium in contrast to its industry's Forward P/E of 30.1.

One should further note that VRT currently holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.72 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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