VRT Expands Portfolio With PowerUPS 9000: Is the Stock a Buy?

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].