Latest news with #VertivHoldings
Business Insider
18 hours ago
- Business
- Business Insider
Is there More Upside in Vertiv Stock (VRT) After a Stellar Rally?
Vertiv Holdings (VRT) stock has rallied by more than 40% over the past year, as the data center infrastructure company is experiencing solid demand for its products amid the ongoing AI (artificial intelligence) boom. While most analysts are bullish on VRT stock due to AI tailwinds, Wall Street's average price target indicates a possible downside from current levels. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Favorable Demand Backdrop for AI Infrastructure Companies Vertiv provides energy-efficient cooling and power solutions that are required to support AI workloads. Interestingly, on Friday, VRT stock rose by 2% after Reuters reported that the Trump administration is preparing a series of executive actions to increase energy supply for AI development in the U.S. Spending on data centers is expected to increase in the coming years, benefiting AI infrastructure companies such as Vertiv Holdings. Bank of America estimates total data center spending to grow at a compound annual growth rate (CAGR) of 13% from 2024 to 2028, reaching $532 billion by 2028. In fact, infrastructure-related spending is expected to rise even faster, at a CAGR of 16%. Here's What Bulls and Bears Think About VRT Stock According to TipRanks' Bulls Say, Bears Say Tool, VRT Bulls are optimistic about the company due to robust demand and better visibility, which are driving higher estimates. Many analysts also believe in Vertiv's ability to address customers' requirements amid the growing complexity in AI deployments, with solid market shares in data center thermal and electrical equipment. Meanwhile, Bears are concerned about a slowdown in capital spending by hyperscalers or cloud service providers, volatility in orders, and the impact of tariffs on costs. Is VRT a Good Stock to Buy? Overall, Wall Street has a Strong Buy consensus rating on Vertiv Holdings stock based on 12 Buys and two Hold recommendations. The average VRT stock price target of $116.93 indicates a 7.2% downside risk from current levels.
Yahoo
03-05-2025
- Business
- Yahoo
Why Vertiv Holdings Co. (VRT) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against other top performers on Thursday. The stock market ended strong anew on Thursday, with all major indices finishing in the green territory, as investor sentiment was bolstered by a flurry of corporate earnings supported by better-than-expected performance from the technology giants. The tech-heavy Nasdaq led the rally among all major indices, finishing up 1.52 percent. The S&P 500 clocked in a 0.63-percent gain, while the Dow Jones was up by 0.21 percent. Ten companies also mimicked the broader market optimism following impressive earnings performance and an optimistic outlook for the rest of the year. In this article, we have identified the 10 top performers on Thursday and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A close-up of a group of technicians working on complex data center systems. Vertiv Holdings surged by 8.4 percent on Thursday to end at $92.55 apiece as investors cheered the company's impressive earnings performance in the first three months of the year, coupled with an optimistic business outlook. In its earnings release, Vertiv Holdings Co. (NYSE:VRT) said it swung to a net income of $164.5 million in the period from a $5.9-million net loss in the same quarter last year. Revenues jumped by 24 percent to $2.036 billion from $1.639 billion year-on-year. 'Vertiv's strong first quarter results demonstrate our continued momentum and reinforce our position for long-term sustainable growth,' said Vertiv Holdings Co. (NYSE:VRT) CEO Giordano Albertazzi. 'We continue to see accelerated scaling of AI deployments across the data center market, with strong demand signals reinforcing both our near- and long-term growth outlook,' he added. Assuming tariff rates remain constant throughout the year, the company believed that its diverse manufacturing footprint, operational flexibility, and commercial strategies 'will progressively lessen the tariff impact as the year progresses.' 'Although the tariff environment remains fluid, our goal is to significantly mitigate the effect of tariffs as we enter 2026,' Albertazzi said. Overall, VRT ranks 3rd on our list of top performers on Thursday. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Why Vertiv Holdings Co. (VRT) Soared Last Week
We recently published a list of . In this article, we are going to take a look at where Vertiv Holdings Co. (NYSE:VRT) stands against other firms that recorded double-digit gains last week. Ten companies finished the past trading week on a high note, outperforming the three major indices with double-digit gains amid a flurry of catalysts, including upcoming earnings releases, that sparked buying appetite. Week-on-week, the Nasdaq rallied by 6.7 percent, the S&P 500 clocked in a 4.59-percent gain, while the Dow Jones was up by 2.48 percent. In this article, we have listed last week's top 10 performing stocks and detailed the reasons behind their gains. The stocks were chosen based on the highest percentage increase in closing prices on April 25 as against their prices on April 17, or the week prior. To come up with the list, we considered only the companies with a $2-billion market capitalization and a $5-million trading volume. A close-up of a group of technicians working on complex data center systems. Vertiv Holdings Co. (NYSE:VRT) Vertiv Holdings grew its share prices by 18.77 percent week-on-week to close at $86.95 on Friday versus the $73.21 finish on April 17, as investor sentiment was boosted by its strong earnings performance in the first quarter of the year. In its latest earnings release, Vertiv Holdings Co. (NYSE:VRT) said it swung to a net income of $164.5 million from a $5.9 million net loss in the same period a year earlier, as net sales increased by 24 percent to $2.036 billion from $1.639 billion year-on-year. Further contributing to the positive sentiment was the company's bullish outlook, with a target of growing double digits for the second quarter and full year 2025. According to the company, it expects net sales for the second quarter to increase between 19 and 23 percent to $2.325 billion to $2.375 billion. It also targets net sales for the whole year to jump organically by 16.5 to 19.5 percent to a range of $9.3 billion to $9.57 billion. Overall, VRT ranks 9th on our list of firms that recorded double-digit gains last week. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VRT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
23-04-2025
- Business
- Business Insider
This data center firm just gave fresh hope for the AI trade — and its stock is soaring
Vertiv jumped over 13% on Wednesday after a stellar earnings report. The AI data center company cited strong demand for its earnings beat. AI investing has wavered this year amid rising competition. The move: Vertiv Holdings rose as much as 21% on Wednesday, hitting an intraday high of $8893 per share. The stock is down 29% year-to-date. The chart: Why: The data center firm impressed investors with better-than-expected earnings, rousing hope that artificial intelligence demand is still intact. Vertiv was among the top AI trades of 2024, supplying data centers with equipment to keep AI chips from overheating. "We continue to see accelerated scaling of AI deployments across the data center market, with strong demand signals reinforcing both our near- and long-term growth outlook," Giordano Albertazzi, Vertiv's chief executive, said in a statement. Reporting a 21% jump in product orders since the fourth quarter, Vertiv lifted its midpoint 2025 revenue forecast to a range of $9.33 billion to $9.58 billion, beating estimates of $9.18 billion. It also lifted its second-quarter revenue outlook above consensus. First-quarter net sales reached $2.04, a 24% jump from the same period last year. Adjusted earnings-per-share reached $0.64, outpacing $0.61 estimates. What it means: Vertiv's estimate-beating report could help revive some enthusiasm for the stock market's AI trade, which has buckled in 2025. In recent months, worries have grown that the data center buildout is becoming excessive. Meanwhile, serious AI competition from China has hampered confidence in US chipmakers and AI hyperscalers. Despite the challenged environment, Vertiv cited "heightened demand" and noted close project collaboration with Nvidia, the dominant AI chip firm.
Yahoo
15-04-2025
- Business
- Yahoo
Why AI Frontrunner Vertiv Holdings Stock (VRT) is Temptingly Overpriced
AI data centers have been a fascinating and lucrative market corner in the last few years, sending many traditional industrial names, such as Vertiv Holdings (VRT), into the big leagues. Now sitting as one of the most direct plays on the infrastructure surrounding AI, it has become one of the key players in the cooling and thermal systems that keep this technology operational. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. However, with the share price up well over 607% in the last five years, investors would have good reason to question whether there is room for further upside or if the market has already priced in the perfect scenario going forward. I'm leaning towards the cautious side here, and although some estimates suggest there could still be enormous potential to be realized, I think there could still be a long way down for investors if uncertainty lingers. As many would expect, the recent frenzy around AI companies means the company is thinking ahead. Net sales jumped 27% in the last year for Q4, showing strong growth across all regions. Operating profit soared by a healthy 53% to $504 million, with EPS up 77% in the same period. Such numbers can be hard to match over the long term, but management has presented some impressive guidance for 2025, with a record backlog of $7.2 billion, sending EPS a further 25% higher to $3.55. Of course, this is no surprise in the AI sector, but from my perspective, this is not just a company catching a lucky break in an emerging area of the market; it's been preparing for this revolution for some time and has plenty of plans to make the most of it. By perfecting the technology needed for data centers and telecoms sites long before AI became the buzzword all companies have been chasing, Vertiv has built a presence at the heart of hyper-scaling AI cluster deployment. By moving away from providing cooling units and thinking more about integrated systems, management has offered customers a wide range of full-stack solutions, including intelligent monitoring and system prefabrication. Most investors would probably agree that AI is the most dynamic topic in the market, making companies with a competitive moat incredibly compelling at the right price. We already know that demand for AI will likely be strong, meaning that workloads will consistently need cooling systems at scale. If Vertiv management can continue to capture this opportunity and build further income streams, growing earnings and margins will likely be the outcome. Free cash flow is improving over time, and the balance sheet looks increasingly healthy as margins grow. While many will see the company involved in AI, plenty will consider the firm as an industrial player, making 22% margins incredibly notable. With debt levels seemingly well under control, management seems to have plenty of flexibility to continue reinventing or acquiring businesses or returning capital to shareholders. However, market optimism in an emerging technology can be a dangerous environment. While AI is an exciting prospect, many share prices have soared far beyond traditional valuation metrics. While the P/E ratio of 49.7 is not extreme in today's market, a company traditionally considered a cyclical industrial provider might be slightly out of the comfort zone for many investors (including myself). If the current ambitions for AI adoption fail to materialize, spending on the technology could have a fairly dramatic fall, leading to the market repricing of companies that have seen rallies. Even if the hype remains strong, I suspect Vertiv will need to continue executing its strategy with minimal room for error. Any hiccups in the timing of orders, breakdowns in the supply chain, or margin slippages could send investors to the exit door. Whether the company will be considered an AI giant or an industrial firm will play a role in what makes sense for the valuation. As I noted, a P/FCF of 37, a P/S ratio of 5, and other metrics make sense in an AI context, but if repricing sets the company back in the industrial arena, there could be a fairly dramatic drop to follow. My estimate for fair value is about the $73 mark based on future cash flows under a discounted cash flow (DCF) calculation. Still, it will be driven by the demand for AI and how well management can navigate the resulting uncertainty. I'd say the company is compelling, but as always in the market, price matters. For those looking to build a position in AI infrastructure, this looks to be an excellent place to start, but it will need to be closely evaluated for how resilient it can be if the tide begins to turn. Management clearly has confidence that this strategy will work, with steady growth across key performance indicators. Still, I'd be paying close attention to how this messaging evolves over time as uncertainty lingers in the economy and in the spending plans for AI companies. On Wall Street, VRT stock carries a Strong Buy consensus rating based on 13 Buy, two Hold, and zero Sell ratings over the past three months. VRT's average price target of $118.93 implies approximately 71% upside potential over the next twelve months. By all measures, VRT has done a fantastic job of repositioning itself as a key player in the digital infrastructure needed for AI, with essential equipment, a solid growth story, and impressive execution. However, the share price now likely reflects a large amount of this success and potential going forward. The shares are not cheap by traditional estimates, and any of the outlined risks could easily become a problem. It is clear to me that the AI infrastructure revolution is here to stay, but as always, I recommend caution and only buying at the right price. Therefore, I'm cautiously bearish on this one, with concerns that uncertainty over the coming months will gradually fizzle out of much of the excitement seen over the past 18 months. Disclaimer & DisclosureReport an Issue
