Barclays upgrades Vertiv to Overweight from Equal Weight with a $200 price target, up from $181. ...

Core Viewpoint - Vertiv Holdings Co. is predicted to join the S&P 500 in the first quarter of 2026, with a current probability of 71% according to prediction markets [1][2]. Group 1: Market Position and Predictions - Vertiv's odds of inclusion in the S&P 500 are higher than competitors such as SoFi Technologies (37%), Alnylam Pharmaceuticals (30%), Pure Storage (22%), and Ciena (27%) [2][4]. - To qualify for S&P 500 inclusion, a company must have a minimum market capitalization of $22.7 billion and meet specific trading activity requirements [5]. Group 2: Financial Performance - Vertiv's stock has increased over 1,047% in less than three years, with a current market capitalization of nearly $62 billion [6]. - The company reported a 29% year-over-year revenue increase, reaching $2.68 billion in its recent third-quarter results, with earnings of $1.24 per share compared to $0.76 the previous year [7]. - Vertiv raised its full-year sales outlook to between $10.16 billion and $10.24 billion, supported by a robust backlog of $9.5 billion, which is up 30% year-over-year [7]. Group 3: Analyst Insights - Citigroup analysts have raised their price target for Vertiv to $220 per share, indicating a potential upside of 35.72% from current levels [8]. - Vertiv's stock is rated highly on Momentum, Growth, and Quality in Benzinga's Edge Stock Rankings, showing a favorable price trend in the medium and long term [8].

Core Viewpoint - The article discusses the rapid growth of "pick-and-shovel" companies in the AI sector, suggesting that these companies may offer better investment opportunities than traditional AI firms like OpenAI, Microsoft, and Alphabet due to their impressive revenue and profit growth rates [1][2]. Revenue Growth - Alphabet has increased its trailing-12-month (TTM) revenue by 37.3% over the last three years, while Microsoft has seen a TTM revenue growth of 44% during the same period [4]. - In contrast, Vertiv Holdings has experienced a TTM revenue growth of 70.4%, and Arista Networks has achieved a remarkable 92.8% growth over the same timeframe [6]. Profit Growth - Microsoft’s net income has grown by 55.5% since December 2022, and Alphabet's net income has more than doubled, with a three-year growth of 107.2% [9]. - Arista Networks has reported a net income growth of 148.2%, while Vertiv has seen an extraordinary 1,250% increase in net income over the same period [9][10]. Market Valuation - Vertiv is trading at 40.6 times forward earnings, and Arista at 45.8 times forward earnings, compared to Microsoft and Alphabet, which are valued at approximately 30 times and 29.7 times forward earnings, respectively [12]. - The higher valuations for companies like Vertiv and Arista indicate investor confidence in their growth potential within the AI infrastructure space [13]. Investment Strategy - Investors are encouraged to monitor "pick-and-shovel" AI companies for potential short-term price dips that may present attractive buying opportunities as the AI buildout continues [14].

Core Insights - 2026 marks a year of introspection for the AI arms dealer following another year of double-digit returns driven by AI [1] - JR Research is recognized as a Top Analyst by TipRanks and Seeking Alpha, focusing on technology, software, and internet sectors [1] - The investment strategy emphasizes identifying attractive risk/reward opportunities with robust price action to generate alpha above the S&P 500 [1] Investment Strategy - The approach combines price action analysis with fundamental investing, avoiding overhyped stocks while targeting battered stocks with recovery potential [1] - The investing group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, focusing on growth stocks with strong fundamentals and attractive valuations [1] - The investment outlook is typically set for 18 to 24 months for the thesis to materialize [1]

Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025. David A. Grogen | CNBC The investing world's north star is beginning to dim.Warren Buffett has handed over the CEO reins to Greg Abel after a six-decade run that turned an unremarkable textile company into one of the most powerful compounding engines in market history, leaving investors grappling with how singular that achievement really was, even as he remains chairman of Berkshire ...

Company Performance - Vertiv Holdings Co. (VRT) closed at $162.01, reflecting a -1.42% change from the previous day, which is less than the S&P 500's daily loss of 0.74% [1] - Prior to the latest trading session, shares had decreased by 9.16%, underperforming the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79% [1] Earnings Projections - The upcoming earnings report is projected to show earnings per share (EPS) of $1.28, indicating a 29.29% increase from the same quarter last year [2] - Quarterly revenue is expected to reach $2.86 billion, up 22.09% from the year-ago period [2] - For the annual period, earnings are anticipated to be $4.11 per share and revenue at $10.22 billion, reflecting increases of +44.21% and +27.53%, respectively, from the previous year [3] Analyst Estimates and Ratings - Recent changes to analyst estimates for Vertiv Holdings Co. are being monitored, as upward revisions indicate analysts' positive outlook on the company's operations and profit generation [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Vertiv Holdings Co. as 2 (Buy) [6] Valuation Metrics - Vertiv Holdings Co. has a Forward P/E ratio of 39.94, which is significantly higher than the industry average of 17.48, indicating a premium valuation [7] - The company also has a PEG ratio of 1.32, compared to the industry average PEG ratio of 1.82, suggesting a favorable growth outlook relative to its price [8] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [9] - Research indicates that industries in the top 50% rated by Zacks tend to outperform those in the bottom half by a factor of 2 to 1 [9]

Market Overview - The U.S. stock market experienced a slight decline on December 26, 2025, primarily due to low trading volume following the Christmas holiday, with many institutional investors absent for the year [1] - Major indexes such as the S&P 500, Dow, and Nasdaq saw small dips, ending short winning streaks observed earlier in the week [1][9] Investment Strategy - During the holiday season, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a consistent history of dividend increases often exhibit strong financial health [2] - Dividend-growth stocks provide a defensive hedge against economic uncertainty and market volatility, making them attractive during periods of low market activity [4] Dividend Growth Stocks - Stocks with a strong history of year-over-year dividend growth are considered healthier investments, offering greater potential for capital appreciation compared to simple dividend-paying stocks [3][6] - Five selected dividend-growth stocks include: - Woodward Inc. (WWD): Expected revenue growth of 11.1% for fiscal 2026, long-term earnings growth rate of 15.20%, and an annual dividend yield of 0.36% [10] - Enersys (ENS): Projected revenue growth of 4% for fiscal 2026, long-term earnings growth rate of 15%, and an annual dividend yield of 0.70% [11] - Donaldson (DCI): Anticipated revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and an annual dividend yield of 1.31% [12] - Rockwell Automation (ROK): Expected revenue growth of 5.8% for fiscal 2026, long-term earnings growth rate of 12.4%, and an annual dividend yield of 1.38% [13] - Vertiv Holdings (VRT): Projected revenue growth of 27.5% for fiscal 2025, long-term earnings growth rate of 30.2%, and an annual dividend yield of 0.15% [14] Stock Selection Criteria - Stocks selected for their strong fundamentals include criteria such as: - 5-Year Historical Dividend Growth Greater Than Zero [6] - 5-Year Historical Sales Growth Greater Than Zero [7] - 5-Year Historical EPS Growth Greater Than Zero [7] - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Price/Cash Flow Less Than Industry Median [8] - 52-Week Price Change Greater Than S&P 500 [8]

Core Insights - Nvidia has been a leading stock in the AI revolution, providing powerful processors essential for AI platforms [1] - The AI movement faces challenges, particularly in power infrastructure for data centers, creating new investment opportunities beyond Nvidia [2] - Vertiv is emerging as a promising stock in the AI infrastructure space, offering long-term growth potential [3] Company Overview - Vertiv specializes in AI infrastructure, providing cost-effective power and cooling solutions for data centers [4] - The company offers unique cooling solutions, such as chilled water systems, which can reduce power consumption by approximately 30% compared to conventional methods [5] - In addition to cooling, Vertiv provides power generation and electricity management solutions, including highly efficient energy systems [6][7] Industry Challenges - AI data centers are facing higher electricity costs than anticipated, complicating operational efficiency [8] - The need for effective cooling solutions in data centers has become a significant challenge as electricity prices rise [8] - Vertiv's future business prospects are growing faster than its current revenue, indicating strong potential for investors [8]

Market Overview - The market and leading AI stocks are at an inflection point, with potential for near-term volatility or pullback, but long-term opportunities remain compelling, extending into 2026 and beyond [1] - AI capital spending is projected to reach approximately $571 billion by 2026, with Nvidia, Broadcom, and Vertiv positioned as critical enablers of this infrastructure buildout [2] Nvidia - Nvidia is a key player in the AI boom, leading in GPU technology, and has seen a 42% return in 2025 despite a subdued year [6] - The company has advanced its largest acquisition to date, acquiring assets from AI chip startup Groq for about $20 billion, which strengthens its competitive position in AI semiconductors [7][8] - Analysts have raised earnings estimates for Nvidia, leading to a Zacks Rank 2 (Buy), with a consensus forecast of nearly 16% earnings growth for the next year and 46.3% annual EPS growth over the next three to five years [9] - The technical picture for Nvidia has improved, breaking out from a descending bullish wedge, indicating potential for further upside as 2026 approaches [10] Broadcom - Broadcom has become increasingly important in the AI ecosystem, particularly as Alphabet reasserts its leadership in AI and large language models [12] - The company plays a critical role in supporting Alphabet's AI infrastructure, providing expertise in ASIC design and networking, which is essential for scaling AI systems [13] - Broadcom currently holds a Zacks Rank 3 (Hold), with consensus estimates projecting 35.7% annual EPS growth over the next three to five years, and trades at approximately 36x one-year forward earnings [14][15] - The stock has shown resilience, finding support after a selloff, and the technical outlook remains encouraging as long as that support holds [16] Vertiv - Vertiv supplies essential power, cooling, and thermal-management solutions for data centers, reinforcing its position in the AI infrastructure buildout [17] - The company has announced expanded partnerships and highlighted strong backlog growth tied to AI-driven capacity expansion, with consensus forecasts indicating 30.2% annual EPS growth over the next three to five years [18] - Vertiv trades at a 40.6x forward earnings multiple, which is justified by its growth rate and role in AI infrastructure [18] - The stock has been consolidating within a defined trading range, with a key resistance level around $180, indicating potential for further upside if that level is broken [19][23] Investment Consideration - Nvidia, Broadcom, and Vertiv collectively offer complementary exposure to the AI buildout, covering compute, custom silicon, networking, and physical infrastructure [24] - Despite potential near-term volatility, the fundamentals, earnings momentum, and long-term demand visibility for these companies remain strong, favoring opportunistic accumulation as the AI investment cycle extends into 2026 and beyond [24]

Core Insights - Vertiv (VRT) is experiencing significant growth due to the accelerating adoption of AI, particularly in the data center market, with organic sales growth of 43% in the Americas and 21% in APAC for Q3 2025 [1][10] Group 1: Company Performance - VRT's AI-powered product portfolio includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, leading to a 21% growth in organic orders over the past 12 months and a book-to-bill ratio of 1.4 for Q3 2025 [2] - The backlog increased by 12% sequentially and 30% year over year, reaching $9.5 billion, driven by the rapid adoption of AI and the need for data centers [2][10] - For Q4 2025, VRT anticipates revenues between $2.81 billion and $2.89 billion, with organic net sales expected to grow by 18% to 22% [4] Group 2: Competitive Landscape - Vertiv faces increasing competition from Super Micro Computer (SMCI) and Hewlett-Packard Enterprise (HPE), both of which are expanding their capabilities in the AI infrastructure market [5] - Super Micro Computer has enhanced its AI portfolio with new liquid-cooled systems that maximize AI performance and scalability [6] - HPE has expanded its AI-native networking portfolio to optimize AI workloads and simplify IT operations [7] Group 3: Stock Performance and Valuation - VRT's shares have increased by 35.9% over the past six months, outperforming the broader Zacks Computer & Technology sector, which rose by 22%, while the Zacks Computers - IT Services industry declined by 8.1% [8] - The trailing 12-month Price/Book ratio for VRT is 18.12, compared to the sector's 10.65, indicating a premium valuation [12] - The Zacks Consensus Estimate for 2025 earnings is $4.11 per share, reflecting a 44.21% increase from 2024 [15]