Growth Stocks and Investment Strategy - Investors seek growth stocks to capitalize on above-average growth in financials, which can lead to exceptional returns but also carry higher risk and volatility [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - Stocks with the best growth features, especially those with a Growth Score of A or B and a Zacks Rank 1 or 2, consistently outperform the market [3] Vertiv Holdings Co (VRT) as a Growth Stock - Vertiv Holdings Co is recommended by the Zacks proprietary system due to its favorable Growth Score and top Zacks Rank [2] - The company is positioned well for outperformance, making it an attractive option for growth investors [10] Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - Vertiv's historical EPS growth rate is 69.4%, and its projected EPS growth for this year is 34.1%, significantly higher than the industry average of 9.5% [5] Cash Flow Growth - Higher-than-average cash flow growth is particularly beneficial for growth-oriented companies, enabling business expansion without relying on external funding [6] - Vertiv's year-over-year cash flow growth is 88.4%, compared to the industry average of -10.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 31.2%, versus the industry average of 9.1% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [8] - Vertiv's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 0.8% over the past month [8] Bottom Line - Vertiv has earned a Zacks Rank 2 and a Growth Score of A, supported by strong earnings growth, cash flow growth, and positive earnings estimate revisions [9]

The most recent trading session ended with Vertiv Holdings Co. (VRT) standing at $129.27, reflecting a -1.05% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.Coming into today, shares of the company had gained 7.35% in the past month. In that same time, the Computer and Technology sector lost 0.17%, while the S&P 500 lost 2.8%.The u ...

Data Center Industry Overview - The AI frenzy has highlighted the critical role of data centers in facilitating global data, making companies involved in data center ownership, servicing, and exposure attractive investment opportunities [1] Vertiv (VRT) - Provides power, cooling, and IT infrastructure solutions for data centers, communication networks, and commercial/industrial facilities [3] - Bullish outlook with current fiscal year EPS estimate of $2 69 per share, up 20% YoY [3] - Exceeded Zacks Consensus EPS estimate by an average of 10% over last four quarters [4] - Achieved double-digit YoY revenue growth for seven consecutive quarters [4] Arista Networks (ANET) - Industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments [7] - Bullish EPS outlook with Zacks Rank 2 (Buy) [7] - Posted sequential revenue growth in each of last ten quarters [8] Comfort Systems USA (FIX) - Provides HVAC installation, maintenance, repair, and replacement services, including data center components like chillers and cooling towers [10] - Current fiscal year earnings estimate revisions up 46% YoY, suggesting 60% YoY growth [10] Investment Outlook - Vertiv, Arista Networks, and Comfort Systems USA expected to benefit from data center exposure amid AI-driven market trends [12]

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Stock Performance - Vertiv (VRT) shares surged 36.1% over the trailing six months, outperforming the Zacks Computer and Technology sector's 2.8% appreciation and the Zacks Computers – IT Services industry's 19.5% return [1] - VRT outperformed peers like Stem (7%) and DXC Technology (6%) over the same period [1] - The stock is trading above the 50-day and 200-day moving averages, indicating a bullish trend [4][5] Financial Estimates - The Zacks Consensus Estimate for VRT's 2025 earnings is $3.58 per share, unchanged over the past 30 days, indicating 33.2% YoY growth [7] - The consensus mark for 2025 revenues is $9.20 billion, reflecting 17.61% YoY growth [7] - VRT beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 10.13% [7] Product Portfolio Expansion - VRT's product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions [9] - The launch of the Vertiv PowerUPS 9000, offering up to 97.5% efficiency, expanded its data center power solutions portfolio [9] - VRT introduced the CoolPhase CDU and CoolChip Fluid Network, enabling liquid cooling in data centers not originally configured for it [10] - The acquisition of centrifugal chiller technologies from BiXin Energy Technology enhanced VRT's chiller portfolio for high-performance computing and AI [11] Strategic Partnerships - VRT has partnerships with Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, and ZincFive [12] - Collaboration with NVIDIA involves co-developing power and cooling reference designs for the NVIDIA GB200 NVL72 platform [12] - VRT and Compass Datacenters are developing a flexible cooling solution for AI and high-density computing, set for deployment in early 2025 [13] - VRT added ZincFive BC Series UPS battery cabinets to its data center backup power portfolio [13] Competitive Landscape - VRT faces fierce competition in the liquid cooling market, with established players like Johnson Controls International introducing innovative HVAC products [14][15] - Persistent inflation has driven up VRT's operating and logistical costs, with total cost of sales increasing 18.1% YoY to $1.32 billion in Q3 2024 [15][16] - SG&A expenses increased 2.3% YoY to $334.6 million in Q3 2024 [16] Valuation - VRT's Value Score of D suggests a stretched valuation [16] - The trailing 12-month price/book ratio of 26.01 is higher than its median of 22.17 and the broader sector's 10.73 [16][17]

Core Viewpoint - Vertiv (VRT) is expanding its data center power solutions portfolio with the launch of the Vertiv PowerUPS 9000, designed for high-performance IT applications, achieving up to 97.5% efficiency in double-conversion mode [1][2]. Product Expansion - The new Vertiv PowerUPS 9000 is available in UL and CE models ranging from 250 to 1250kW, featuring flexible cable entry options and built-in safety features [1][2]. - Vertiv is also expanding its liquid cooling portfolio with new products like the CoolPhase CDU and CoolChip Fluid Network, enhancing its infrastructure offerings for data centers [13]. Financial Performance - VRT shares have appreciated 166.8% year-to-date, significantly outperforming the Zacks Computer & Technology sector's 30.6% return and the IT Services industry's 16% growth [3]. - Vertiv's backlog reached $7.4 billion at the end of Q3 2024, a 47% year-over-year increase, with organic orders surging 19.2% year-over-year [6]. - For Q4 2024, Vertiv expects revenues between $2.12 billion and $2.17 billion, indicating an organic growth rate of 11-15% year-over-year [7]. - For the full year 2024, revenues are projected between $7.78 billion and $7.83 billion, with an organic growth rate of 13-15% [8]. Market Position - Vertiv's earnings have consistently beaten the Zacks Consensus Estimate over the past four quarters, with an average surprise of 10.13% [9]. - The company is expanding its manufacturing capacity globally, with 23 plants to meet AI-driven demand growth [11]. Strategic Partnerships - Vertiv is collaborating with Ballard Power Systems to develop backup power applications for data centers, integrating fuel cell power modules with its UPS systems [14]. - The addition of ZincFive BC Series UPS battery cabinets enhances Vertiv's backup power solutions for data centers [15]. Valuation and Investment Outlook - VRT stock is currently trading at a Price/Book ratio of 26.52, indicating a stretched valuation compared to its median of 21.17 and the sector's 10.27 [16]. - The stock is showing a bullish trend, trading above the 50-day and 200-day moving averages [21]. - With a Growth Score of A and a Zacks Rank 2 (Buy), the stock is considered attractive for growth-oriented investors [23].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Vertiv Holdings Co. due to a class action complaint alleging breaches of fiduciary duties by the board of directors during a specified class period [1] Financial Performance - On February 23, 2022, Vertiv reported disappointing financial results with earnings per share of $0.06 for Q4 2021, significantly missing analyst estimates of $0.28 per share [2] - Following the announcement, Vertiv's stock price dropped by $7.19, or 37%, closing at $12.38 per share on the same day, amidst unusually high trading volume [2] Allegations in Class Action - The class action complaint alleges that Vertiv's management made materially false and misleading statements and failed to disclose critical adverse facts about the company's operations and prospects [3] - Specific allegations include the inability to adequately respond to supply chain issues and inflation, which adversely impacted earnings, and that positive statements made by management were misleading and lacked a reasonable basis [3]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings estimates to maintain momentum [1][2]. Group 1: Stock Performance - Vertiv Holdings Co. (VRT) has shown a significant price increase of 75.2% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 15.7% in the last four weeks, suggesting that the upward trend is still intact [5]. - VRT is currently trading at 86.7% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - VRT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like VRT that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are multiple stocks passing through this screen, providing additional investment opportunities [8].

Core Viewpoint - Vertiv (VRT) is experiencing significant growth, with shares tripling in the past year, driven by robust demand for data center infrastructure solutions, particularly in the AI sector [1][3][5]. Company Overview - Vertiv is a key provider of data center infrastructure solutions, offering hardware, software, analytics, and services essential for high-performance computing [2][4]. - The company has partnered with Nvidia to address future data center efficiency and cooling challenges [4]. Financial Performance - Vertiv reported a beat-and-raise quarter on October 23, attributed to strong demand for its digital infrastructure products [3][5]. - Following an investor day on November 18, shares surged over 14%, and analysts raised next year's EPS estimates from $3.50 to $3.58 [7][8]. Growth Projections - Vertiv anticipates organic sales growth of 16% to 18% for 2025, with a preliminary EPS forecast of $3.50 to $3.60 [7][10]. - The company expects the data center market to grow by 10% to 13% through 2029, with its own sales growth projected to average around 13% annually [10]. Revenue Estimates - Revenue projections are as follows: - 2023: $6.86 billion - 2024E: $7.8 billion - 2025E: $9.158 billion - 2026E: $10.42 billion - For 2025, sales growth is expected to accelerate to 16% to 18% [11]. Operational Highlights - Vertiv's service headcount increased by 14% year-over-year, service centers grew by 29%, and AI-focused training surged by 370% year-over-year [11]. - Liquid cooling product offerings have doubled year-over-year, indicating a strong focus on innovative solutions [12]. Market Position - 75% of Vertiv's revenue is derived from data centers, with the remaining 25% from thermal solutions [13].

Market Overview - Major US indexes are experiencing a significant rally in November, with the S&P 500 up nearly 5%, the Dow up over 6%, and the Nasdaq up slightly more than 5% from late-October lows [1] - Sector rotation is evident as investors shift towards industrials, financials, and consumer discretionary stocks, indicating a broadening market breadth that supports the sustainability of the new bull market [2] Earnings and Economic Indicators - Corporate earnings have exceeded expectations, contributing to the market rally, with total earnings for S&P 500 companies up 8.1% year-over-year on 5.5% higher revenues [19] - The labor market remains resilient, with recent jobless claims reports confirming this trend, which is viewed as a significant factor in the current market environment [4] Stock Selection and Performance - The equal-weighted S&P 500 ETF has outperformed its market-weighted counterpart, suggesting that a majority of stocks, not just large-cap companies, are driving the market's positive momentum [3] - Vertiv Holdings (VRT) is highlighted as a leading stock within the top 24% of the Zacks Computers – IT Services industry, which has significantly outperformed the market over the last three months [9] - VRT has shown a 10.1% average earnings surprise over the past four quarters, with analysts increasing EPS estimates for the next year by 8.16%, projecting a fiscal 2025 Zacks Consensus Estimate of $3.58/share, a 33.2% improvement from the current year [14] Investment Strategy - The Zacks Industry Rank system is utilized to identify top-performing stocks, with a focus on those with positive earnings estimate revisions, which have historically outperformed the S&P 500 [7][11] - A top-down investment approach is recommended, starting with leading industry groups and narrowing down to stocks with the highest Zacks Rank, such as Vertiv Holdings, which is experiencing strong buying pressure and has made a series of 52-week highs [16]