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Evaluating VRT Stock's Actual Performance
Yahoo Financeยท 2025-12-07 16:51
Core Insights - Vertiv Holdings, based in Ohio, has gained attention due to its products for data centers amid the AI boom, transitioning from a lesser-known company to a more exciting investment opportunity [1] - The stock has experienced increased volatility, currently sitting more than 10% off its recent highs, raising questions about its performance for both short-term and long-term shareholders [2] One-Year Performance - Over the past year, Vertiv's stock initially rose by 20.8% in January but faced a significant decline, dropping 53.2% by April. However, it has since recovered and is now up 40.8% year-over-year, outperforming the S&P 500, which returned 13.4% [3][5] Three-Year Performance - Vertiv's stock has shown remarkable growth, with a three-year return of 1,110%, significantly surpassing the S&P 500's 68.3% return during the same period [4] Five-Year Performance - The five-year return for Vertiv stands at 822.3%, still outperforming the S&P 500's 86.7% return, but this is nearly 300 percentage points lower than its three-year return, indicating a decline in growth momentum [4] Historical Context - The decline in Vertiv's stock in 2022 was attributed to a poor Q4 2021 earnings report, where the company reported a $3.9 million operating loss compared to a $120 million profit the previous year, alongside a 95% drop in free cash flow, leading to a 67% decline in share price at one point [6]