Latest news with #VertivHoldingsCo
Yahoo
3 days ago
- Business
- Yahoo
Vertiv (VRT) Could Be the Biggest Winner of the AI Data Center Boom
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 AI stocks that are on analyst's radar today. On May 27, Evercore ISI analyst Amit Daryanani raised the firm's price target on Vertiv Holdings Co (NYSE:VRT) to $150 from $100 and kept an 'Outperform' rating on the shares. Vertiv Holdings Co (NYSE:VRT) offers digital infrastructure technology and services for data centers, communication networks, and commercial and industrial facilities. According to the firm, Vertiv appears to be a strong option for investors who wish to benefit from the growth in artificial intelligence data centers, including hyperscale facilities. With data centers growing more complex by the minute, Vertiv's services are very likely to become critical to their operation. This is why the firm believes that Vertiv's stock 'looks like a compelling way for investors to play secular trends related to AI data centers' and is 'the best-positioned company to benefit from the AI tailwinds' on the data center physical infrastructure side. A close-up of a group of technicians working on complex data center systems. Vertiv Holdings Co (NYSE:VRT) is seen as a comprehensive provider based on its capabilities in liquid cooling, servicing, and lifecycle management. The transition towards liquid cooling is likely to result in growth for Vertiv. Meanwhile, the company is also recognized for its opportunities in power management. This is especially true now that AI data centers are demanding more equipment and shifting towards higher voltage infrastructure. The firm expects integrated systems and modular solutions to bring sustained leverage and margin expansion. Overall, VRT ranks 6th on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRT and that has 100x upside potential, 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
4 days ago
- Business
- Yahoo
Is It Worth Investing in Vertiv (VRT) Based on Wall Street's Bullish Views?
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. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Vertiv Holdings Co. (VRT). Vertiv currently has an average brokerage recommendation (ABR) of 1.37, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.37 approximates between Strong Buy and Buy. Of the 19 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79% and 5.3% of all recommendations. Check price target & stock forecast for Vertiv here>>>While the ABR calls for buying Vertiv, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Vertiv, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.55. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Vertiv. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Vertiv. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Vertiv Holdings (VRT) Declined Due to DeepSeek AI App Launch
Baron Funds, an investment management company, released its 'Baron Small Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, the fund was down 9.07% (Institutional Shares) compared to the Russell 2000 Growth Index's (the Index) -11.12% return. Small-cap stocks continued to underperform larger market caps meaningfully, so the Fund lagged the Russell 3000 Index, which fell 4.72% in the quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as Vertiv Holdings Co (NYSE:VRT). Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co (NYSE:VRT) was 20.88%, and its shares lost 1.91% of their value over the last 52 weeks. On May 23, 2025, Vertiv Holdings Co (NYSE:VRT) stock closed at $104.14 per share with a market capitalization of $39.69 billion. Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q1 2025 investor letter: "Shares of Vertiv Holdings Co (NYSE:VRT), a provider of power, cooling, and infrastructure solutions for data centers, sold off sharply during the quarter after the introduction of the surprisingly efficient DeepSeek AI app raised investor concerns that there would be less need for capital expenditures in the data center industry than projected and, accordingly, would slow Vertiv's growth rate. In addition, after strong outperformance in 2024, investor concerns that orders could slow in upcoming quarters, as customers go through a digestion period of related spend, caused a revaluation of the entire space. We believe Vertiv maintains its competitive advantage and will benefit from increased capital spend and the complex roadmap related to new chip introductions, which will run hotter and require more advanced cooling solutions. We believe the stock is attractively valued in the context of its long-term growth potential." A close-up of a group of technicians working on complex data center systems. Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the first quarter, which was 92 in the previous quarter. While we acknowledge the potential of Vertiv Holdings Co (NYSE: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Vertiv Holdings Co (NYSE:VRT) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Vertiv Holdings (VRT) Declined Due to DeepSeek AI App Launch
Baron Funds, an investment management company, released its 'Baron Small Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, the fund was down 9.07% (Institutional Shares) compared to the Russell 2000 Growth Index's (the Index) -11.12% return. Small-cap stocks continued to underperform larger market caps meaningfully, so the Fund lagged the Russell 3000 Index, which fell 4.72% in the quarter. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as Vertiv Holdings Co (NYSE:VRT). Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co (NYSE:VRT) was 20.88%, and its shares lost 1.91% of their value over the last 52 weeks. On May 23, 2025, Vertiv Holdings Co (NYSE:VRT) stock closed at $104.14 per share with a market capitalization of $39.69 billion. Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q1 2025 investor letter: "Shares of Vertiv Holdings Co (NYSE:VRT), a provider of power, cooling, and infrastructure solutions for data centers, sold off sharply during the quarter after the introduction of the surprisingly efficient DeepSeek AI app raised investor concerns that there would be less need for capital expenditures in the data center industry than projected and, accordingly, would slow Vertiv's growth rate. In addition, after strong outperformance in 2024, investor concerns that orders could slow in upcoming quarters, as customers go through a digestion period of related spend, caused a revaluation of the entire space. We believe Vertiv maintains its competitive advantage and will benefit from increased capital spend and the complex roadmap related to new chip introductions, which will run hotter and require more advanced cooling solutions. We believe the stock is attractively valued in the context of its long-term growth potential." A close-up of a group of technicians working on complex data center systems. Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the first quarter, which was 92 in the previous quarter. While we acknowledge the potential of Vertiv Holdings Co (NYSE: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Vertiv Holdings Co (NYSE:VRT) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Jim Cramer on Vertiv Holdings (VRT): 'I Want to Own the Stock'
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 stocks that Jim Cramer discusses. A caller asked if they should buy more, hold, or sell Vertiv Holdings Co (NYSE:VRT). Cramer replied: 'Oh, I like Vertiv. I like Vertiv now. It's, it's bounced well off the bottom, but it's got Dave Cote as the chairman, and we have Mr. Albertazzi as the CEO. Here's what you need to know about this, this company has incredible demand, and therefore, it's just, if I see that kind of demand and they have good gross margins, I want to own the stock.' A close-up of a group of technicians working on complex data center systems. Vertiv Holdings (NYSE:VRT) provides support for digital infrastructure by managing lifecycle services for data centers, communication networks, and a range of commercial or industrial systems. Hardman Johnston Global Equity Strategy stated the following regarding the company in its Q4 2024 investor letter: 'From a sector standpoint, the main drivers of the portfolio's outperformance during the fourth quarter were Industrials and Materials. Within Industrials, Howmet Aerospace, Inc. and Vertiv Holdings Co (NYSE:VRT) were the largest contributors to outperformance. Vertiv has been a stellar performer for the past year and beyond. The global leader in data center thermal and electrical equipment continued to execute on its record backlog, with strong order flow largely related to AI-driven data center demand. Data center operators and hyperscalers are partnering with the company to develop next generation designs to optimize power and thermal efficiency. Vertiv's global service network is uniquely positioned to help clients design and maintain these important data centers.' Overall, VRT ranks 8th on our list of stocks that Jim Cramer discusses. 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 have limited downside risk. If you are looking for an AI stock that is more promising than VRT and that has 100x upside potential, 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.
