Vertiv Holdings Co. (VRT) Outperforms Broader Market: What You Need to Know

Vertiv Holdings Co. (VRT) closed the most recent trading day at $251.28, moving +2.8% from the previous trading session. This change outpaced the S&P 500's 0.78% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.29%.

Prior to today's trading, shares of the company had gained 28.55% outpaced the Computer and Technology sector's loss of 3.59% and the S&P 500's loss of 1.33%.

The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. The company is forecasted to report an EPS of $1, showcasing a 56.25% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.65 billion, indicating a 30.08% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.15 per share and a revenue of $13.68 billion, signifying shifts of +46.43% and +33.76%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Vertiv Holdings Co. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.02% higher. 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 39.75. This represents a premium compared to its industry average Forward P/E of 12.69.

Investors should also note that VRT has a PEG ratio of 1.23 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.