Vertiv(US:VRT) ZACKS·2024-06-27 22:50Core Viewpoint - Vertiv Holdings Co. is currently experiencing a decline in stock performance despite positive earnings expectations, with a premium valuation compared to industry averages [1][2][3][4]. Valuation Metrics - The company is trading at a Forward P/E ratio of 35.89, which is higher than the industry's average Forward P/E of 26.59 [1]. - Vertiv Holdings Co. has a PEG ratio of 1.27, significantly lower than the average PEG ratio of 2.92 for the Computers - IT Services industry [7]. Stock Performance - The stock closed at $86.88, reflecting a slight decrease of -0.15% from the previous session, underperforming compared to the S&P 500's gain of 0.09% [2]. - Over the past month, shares have decreased by 15.7%, contrasting with a 6.18% gain in the Computer and Technology sector and a 3.38% gain in the S&P 500 [2]. Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.59, representing a 28.26% increase year-over-year, with revenue anticipated at $1.94 billion, a 12.1% increase from the previous year [3]. - For the full year, earnings are projected at $2.42 per share and revenue at $7.72 billion, indicating increases of 36.72% and 12.46%, respectively, from the prior year [4]. Analyst Sentiment - Recent changes in analyst estimates are crucial for understanding the company's business outlook, with positive revisions seen as favorable [4]. - Vertiv Holdings Co. currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on estimate changes [6]. Industry Context - The Computers - IT Services industry is ranked 98 in the Zacks Industry Rank, placing it in the top 39% of over 250 industries, suggesting strong performance potential [8].