Looking for a Growth Stock? 3 Reasons Why Vertiv (VRT) is a Solid Choice

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]