Zacks Investment Research·2025-12-01 20:24Company Overview & Market Position - Vertiv Holdings (VRT) is a global designer and manufacturer of digital infrastructure technologies for communication networks and data centers [2] - Vertiv partners with Nvidia in a high-density reference design for extreme power and thermal requirements of Nvidia's 72 GPU rack scale systems [3] - Coherent Corporation is a global leader in lasers, optics, and photonic components used across various industries including AI [16] - Coherent is emerging as an important player in AI due to the shift towards silicon and photonics-based networking in data centers [15][19] Industry & Ranking - Vertiv Holdings is part of the Zach's Computers IT Services Industry Group, ranked in the top 32% [7] - The top 50% of Zach's ranked industries outperforms the bottom 50% by a factor of more than 2:1 [8] - Coherent has a Zach Rank of 2, driven by analyst upgrades [22] Financial Performance & Estimates (Vertiv) - Vertiv has delivered a 1489% average earning surprise over the last four quarters [9] - Vertiv reported third-quarter earnings of $124 per share, a 24% beat versus the Zach's consensus estimate, with earnings growing 63% from the same period last year [10] - Estimates for Vertiv's fourth quarter have been increased by 323% in the past 60 days [11] - Vertiv's Q4 Zach's consensus estimate now stands at $128 per share, reflecting potential growth of nearly 30% relative to the year-ago period [12] - Vertiv's revenues in the fourth quarter are projected to climb more than 22% to $286 billion [12] Financial Performance & Estimates (Coherent) - Analysts covering Coherent have unanimously upgraded their earnings estimates [22] - Coherent's current quarter estimates have jumped by 8%, next quarter is up by 95% [22] - Coherent's current year estimates have increased by almost 10% over the last 30 days, and next year earnings estimates have risen by 4% [23] - Coherent's sales are expected to grow 15% this year and 145% next year [23] - Coherent's earnings are expected to grow 256% annually over the next three to five years [25] Stock Performance & Valuation - Vertiv (VRT) stock is up nearly 200% off the April lows [12] - Coherent's stock is up approximately 50% this year and has tripled from the April lows from $50 to $161 [26] - Coherent is trading at 327 times forward earnings [25]