This Top Ranked Data Center Stock Just Keeps Climbing

Core Insights - Artificial intelligence (AI) remains a significant focus for investors, particularly in the data center sector, with Vertiv (VRT) identified as a top-ranked stock benefiting from this trend [1][6] Company Performance - Vertiv, rated Zacks Rank 1 (Strong Buy), specializes in services for data centers and communication networks, offering power, cooling, and IT infrastructure solutions [2] - Analysts have increased their EPS and sales expectations for Vertiv, with the current Zacks Consensus EPS estimate at $4.11, indicating a 45% year-over-year growth and a 15% increase over the past year [2] - The company reported a strong sales growth of 29% and has built a significant backlog, reflecting robust market demand and a strong competitive position [3][4] Financial Metrics - Vertiv has raised its full-year 2025 sales guidance, indicating a favorable operating environment [3] - The current PEG ratio for Vertiv is 1.2X, below the sector average of 1.4X, and the forward 12-month earnings multiple is 36.1X, significantly lower than the 2025 high of 43.9X [3] Market Context - The demand for Vertiv's products is closely tied to the AI infrastructure build, with strong quarterly results driven by increasing demand [4] - The excitement surrounding AI technology is attributed to its potential to enhance productivity and operational efficiencies for businesses in the long term [6]