Core Insights - Vertiv (VRT) is experiencing strong international demand for data center infrastructure, driven by the global acceleration of digital transformation and AI adoption [1] Financial Performance - The company reported a robust third-quarter 2025, with organic sales growth of 28% year over year, driven by a 43% increase in the Americas and 21% growth in the APAC region [2] - Vertiv's backlog has grown 30% year over year to $9.5 billion, providing strong visibility into 2026 [2] - For fourth-quarter 2025, revenues are expected to be between $2.81 billion and $2.89 billion, with organic net sales expected to increase in the 18% to 22% range [5] Product Development - Vertiv recently announced new configurations of its Vertiv MegaMod HDX prefabricated power and hybrid cooling solutions, designed for high-density AI and HPC deployments [3] - The modular systems integrate direct-to-chip liquid cooling, redundant power architecture, and factory-tested components, enhancing deployment speed and scalability [4] Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both expanding their capabilities in the AI infrastructure market [6] - Super Micro Computer is scaling production to 6,000 racks per month, including 3,000 DLC racks, to meet regional AI requirements [7] - Hewlett-Packard Enterprise expanded its AI infrastructure portfolio and partnered with NVIDIA to launch the AI Factory Lab in Grenoble, France [8] Stock Performance and Valuation - VRT's shares have gained 39.9% in the past six months, outperforming the broader Zacks Computer & Technology sector, which appreciated 16.8% [9] - Vertiv's stock is trading at a premium, with a trailing 12-month Price/Book of 19.09X compared to the sector's 10.74X [13] - The Zacks Consensus Estimate for 2025 earnings is pegged at $4.12 per share, indicating a 44.56% increase from the reported figure of 2024 [16]

Group 1: Investment Recommendations - Bank of America has identified several stocks well-positioned for the upcoming earnings season, including Amazon.com Inc., Brookdale Senior Living Inc., Corning Inc., Vertiv Holdings Co., and Carvana Co. [1] - Amazon is highlighted as a compelling investment due to its potential for valuation improvement, particularly if AWS revenue growth accelerates and AI capabilities are strengthened [2][3] - Brookdale Senior Living has been upgraded to a buy rating, benefiting from an aging population, with shares rising nearly 13% this year [4] - Carvana is recognized for its growth potential, driven by innovation and new initiatives, with its stock up 6% this year [5] - Corning has been rated a buy, supported by a favorable balance of glass supply and demand, and expected growth from carrier spending and Gen AI in the Optical market [6] - Vertiv is expected to benefit from margin recovery and improved free cash flow, with increased demand for its thermal management products due to AI adoption in data centers [7] Group 2: Market Trends and Earnings Outlook - The tech industry is anticipated to have a strong Q4 earnings season, with predictions of impressive earnings from tech giants like Amazon, Microsoft, and Alphabet, driven by demand for AI enterprise services [8] - The upgrade of Brookdale Senior Living reflects strong growth potential in the senior housing sector, despite challenges in the healthcare landscape [9] - Corning's strong Q3 results, with core sales up 14% year over year and enterprise sales in Optical Communications surging 58%, highlight ongoing shifts in digital infrastructure and materials science sectors [10]

Core Viewpoint - Vertiv Holdings Inc. has shown strong stock performance with a 7.96% increase over the past month and a 20.55% increase over the past year, leading to optimism among long-term shareholders, although concerns about potential overvaluation based on the price-to-earnings (P/E) ratio are present [1]. Group 1: Stock Performance - The current stock price of Vertiv Holdings Inc. is $175.31, reflecting a 1.61% increase in the current session [1]. - Over the past month, the stock has increased by 7.96% [1]. - In the past year, the stock has appreciated by 20.55% [1]. Group 2: P/E Ratio Analysis - The P/E ratio of Vertiv Holdings is 65.11, which is higher than the aggregate P/E ratio of 40.93 for the Electrical Equipment industry [6]. - A higher P/E ratio may suggest that shareholders expect better future performance from Vertiv Holdings compared to its industry peers [6]. - The P/E ratio is a useful metric for assessing market performance but should not be used in isolation, as it has limitations and should be considered alongside other financial metrics and qualitative factors [8].

Core Insights - Investors are encouraged to consider purchasing leading AI stocks following Taiwan Semiconductor's strong fourth-quarter results, which were significantly enhanced by AI demand [1][2] - The semiconductor industry, particularly companies like Taiwan Semiconductor, is expected to continue thriving in the AI sector, with projections indicating robust growth through 2026 [1][8] Semiconductor Industry - Taiwan Semiconductor (TSM) raised its capital expenditure guidance for 2026 to between $52 billion and $56 billion, surpassing the previous year's guidance of $40.9 billion [8] - TSMC anticipates a revenue increase of 30% in 2026, with a compound annual growth rate (CAGR) of approximately 25% from 2024 to 2029 [8] AI Stocks - The tech sector is projected to experience a 20% earnings growth in 2026, contributing to an overall S&P 500 earnings growth of 12.8% [4][5] - Vertiv Holdings Co (VRT) is highlighted as a key AI infrastructure stock, expected to grow its revenue by 28% in 2025 and 22% in 2026, reaching $12.43 billion [13] - Advanced Micro Devices (AMD) is positioned as a strong competitor in the AI chip market, with a projected revenue growth of 32% in 2025 and 28% in 2026, aiming for $43.43 billion [20] Earnings Outlook - The overall earnings outlook for the tech sector has improved significantly since early July, with all 16 Zacks sectors expected to show positive earnings growth for the first time since 2018 [5] - AMD's earnings per share (EPS) is expected to increase by 20% in FY25 and 58% in FY26, reaching $6.26 per share [21]

Company Overview - Vertiv Holdings Co. (NYSE:VRT) provides critical digital infrastructure and continuity solutions across various industries, including data centers, communication networks, and commercial and industrial environments [1] - Competitors include Schneider Electric and Eaton Corporation, which also operate in the digital infrastructure space [1] Stock Performance - As of January 15, 2026, RBC Capital set a new price target for VRT at $200, representing a potential increase of about 13.02% from the current trading price of approximately $176.96 [2] - The stock is currently priced at $177.33, reflecting an increase of 3.79% or $6.47, indicating positive momentum [3][6] - Over the past year, VRT has experienced significant price movement, reaching a high of $202.45 and a low of $53.60, which may attract momentum investors [4] Market Capitalization and Trading Activity - Vertiv's market capitalization is approximately $67.8 billion, showcasing its substantial presence in the digital infrastructure industry [4][6] - The stock has a trading volume of 1,881,332 shares on the NYSE, indicating active investor interest and contributing to liquidity [5]

Core Insights - Vertiv is collaborating closely with Nvidia to develop an 800-volt DC power portfolio, positioning itself as a key partner for next-generation AI data centers [1] - The company reported a strong financial performance with $462 million in free cash flow and $1.4 billion in cash and equivalents, supporting its expansion plans [1] - Vertiv's book-to-bill ratio stands at 1.4 times with a backlog of $9.5 billion, indicating a robust revenue forecast for 2026 [2] Financial Performance - Vertiv's organic sales reached $2.6 billion in Q3, reflecting nearly 30% year-over-year growth, with the Americas showing over 40% growth [3] - Adjusted EPS increased by 63% year-over-year to $1.24, and full-year earnings are projected to be $4.10 per share, up around 44% year-over-year [2][6] - Free cash flow is expected to be $1.5 billion for the year, demonstrating strong financial health [6] Market Position and Growth Strategy - Vertiv is expanding its offerings in thermal control, high-density racks, power distribution, and advanced services to strengthen its competitive position as AI workloads grow [2] - The company plans to increase R&D spending by over 20% by 2026 to stay ahead of future GPU generations [2] - Analysts expect earnings growth of 45% in 2025 and 29% in 2026, indicating long-term growth potential beyond short-term AI investments [7] Stock Performance and Analyst Ratings - Vertiv's stock (VRT) has increased by 34% over the past 52 weeks, outperforming the S&P 500 Index's gain of 17% [4] - The stock holds an overall rating of "Strong Buy" from Wall Street, with 18 out of 24 analysts recommending it as a "Strong Buy" [8] - The average target price for VRT is $196.05, suggesting a potential upside of 12% from current levels [8]

Core Insights - Vertiv (VRT) and Amphenol (APH) are key players in the AI and data center infrastructure market, providing essential power, cooling, and connectivity solutions for hyperscale and enterprise data centers [1][2] Market Overview - The Data Center Infrastructure Management market was valued at $3.62 billion in 2025 and is projected to grow from $4.29 billion in 2026 to $9.99 billion by 2031, reflecting a compound annual growth rate (CAGR) of 18.43% from 2026 to 2031 [2] Vertiv (VRT) Analysis - Vertiv's comprehensive portfolio includes critical power systems, thermal management solutions, and advanced services, positioning the company to benefit from trends like liquid cooling and AI-enabled predictive analytics [3] - In the trailing 12 months, Vertiv's organic orders increased by approximately 21%, with a book-to-bill ratio of 1.4 times for Q3 2025, and a backlog growth of 12% sequentially and 30% year-over-year to $9.5 billion [4] - The Americas region experienced a 43% organic sales growth in Q3 2025, while APAC saw a 21% year-over-year growth [5] - For 2025, Vertiv expects revenues between $10.16 billion and $10.24 billion, with organic net sales growth anticipated between 26% and 28% [6] Amphenol (APH) Analysis - Amphenol is benefiting from the growing demand for high-speed and high-power interconnect products essential for next-generation data centers [7] - The launch of the UQD and UQDB liquid cooling connector series in 2025 enhances Amphenol's position in high-growth markets such as AI data centers and EV charging [8] - In Q3 2025, Amphenol reported a remarkable 128% year-over-year growth in IT datacom sales, driven by AI-related products and traditional datacom solutions [9][10] - Amphenol anticipates its IT datacom sales to more than double in 2025 compared to the previous year [11] Stock Performance and Valuation - In the trailing 12-month period, Vertiv's shares increased by 28.9%, while Amphenol's shares surged by 109.5% [12] - Vertiv shares are currently trading at a trailing 12-month Price/Book ratio of 18.62X, compared to Amphenol's 14.26X, indicating that both stocks are currently overvalued [16] Earnings Estimates - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $4.12 per share, reflecting a 44.56% year-over-year increase [18] - The Zacks Consensus Estimate for Amphenol's 2025 earnings is $3.29 per share, representing a 59.79% year-over-year rise [20] - Both companies have consistently beaten earnings estimates in the trailing four quarters, with Amphenol showing a higher average surprise of 17.90% compared to Vertiv's 14.89% [20] Conclusion - Both Vertiv and Amphenol are positioned to benefit from the data center infrastructure boom, but Amphenol's stronger earnings momentum and diversified growth drivers suggest it may offer greater upside potential in the near term [21]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score focuses on trends in stock prices and earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, serving as a key indicator alongside the Zacks Rank to identify stocks with the best value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Stock Selection Strategy - Investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success, while stocks with lower ranks should also have favorable Style Scores to mitigate risks [9][10] Company Spotlight: Vertiv Holdings Co. - Vertiv is a leading provider of critical digital infrastructure and services for various essential industries, including cloud computing and healthcare [11] - Vertiv holds a 1 (Strong Buy) rating on the Zacks Rank, with a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 44.6% for the current fiscal year [12]

Core Insights - Vertiv has announced new configurations of the Vertiv™ MegaMod™ HDX, a prefabricated power and liquid cooling infrastructure solution designed for high-density computing environments [1] Group 1: Product Features - The Vertiv™ MegaMod™ HDX delivers a capacity of up to 10 MW [1] - It accommodates rack densities ranging from 50 kW to over 100 kW per rack [1] Group 2: Target Applications - The solution is engineered for high-density computing environments, including artificial intelligence (AI) and high-performance computing (HPC) deployments [1]

Key Takeaways Vertiv reported 29% year-over-year net sales growth to $2.68B in the third quarter of 2025. VRT delivered 21% organic order growth and a 1.4x book-to-bill, signaling strong demand momentum. Vertiv raised its 2025 revenue outlook to $10.16-$10.24B on AI-driven data center demand.Vertiv (VRT) is benefiting from its robust and diversified portfolio, which has positioned the company as a leader in the rapidly growing data center infrastructure market. In the third quarter of 2025, net sales increa ...