Vertiv Holdings Co. (VRT) has demonstrated significant market strength, with its stock price surging 28.7% over the last month and reaching a new 52-week high of $162.23. This performance is supported by a consistent record of positive earnings surprises and robust financial forecasts for the current and upcoming fiscal years.
Since the beginning of the year, Vertiv's stock has climbed 42.2%, substantially outperforming the broader Zacks Computer and Technology sector, which saw a 22.9% gain. The company's growth contrasts sharply with the negative performance of its specific industry subsector.
Key Takeaways
- Vertiv's stock (VRT) increased by 28.7% in the past month, setting a new 52-week high of $162.23.
- The company has surpassed earnings estimates for four consecutive quarters, indicating strong operational performance.
- Analysts project significant earnings and revenue growth for both the current and next fiscal years.
- Despite strong growth, valuation metrics show the stock trades at a premium compared to its industry peers.
Detailed Stock Performance and Market Context
Investors have closely watched Vertiv as its shares have shown remarkable upward momentum. The 28.7% gain over the past month is part of a larger trend that has seen the stock appreciate by 42.2% year-to-date. This growth is particularly noteworthy when placed in the context of its industry.
While the overall technology sector has performed well, Vertiv has significantly outpaced it. The Zacks Computer and Technology sector's 22.9% gain is impressive, but Vertiv has nearly doubled that return. Furthermore, the company stands out against the Zacks Computers - IT Services industry, which has posted a negative return of -15.6% during the same period.
Performance Snapshot
- Vertiv (VRT) Year-to-Date Gain: +42.2%
- Zacks Tech Sector Gain: +22.9%
- Zacks IT Services Industry Return: -15.6%
This divergence highlights company-specific factors driving its stock price, rather than just broad market trends. The stock's ability to reach new highs suggests strong investor confidence rooted in its fundamental financial health and future outlook.
Consistent Earnings and Positive Future Outlook
A primary driver behind Vertiv's outperformance is its exceptional track record of exceeding earnings expectations. The company has not missed consensus earnings per share (EPS) estimates in any of the last four quarters, building a reputation for reliability and strong execution.
In its most recent earnings report on July 30, 2025, Vertiv announced an EPS of $0.95. This figure comfortably beat the consensus estimate of $0.83, reinforcing the positive sentiment surrounding the stock.
Forward-Looking Financial Projections
Analysts' forecasts for Vertiv remain optimistic, projecting continued growth in both revenue and earnings. For the current fiscal year, expectations are set for an EPS of $3.82 on revenues of $9.97 billion. These figures represent substantial year-over-year increases of 34.04% for EPS and 24.47% for revenue.
The growth story is expected to continue into the next fiscal year. Projections indicate earnings could reach $4.85 per share, a 26.9% increase, while revenues are forecasted to grow by 15.8% to $11.55 billion. This sustained, double-digit growth forecast is a key factor supporting the stock's current momentum.
Projected Year-Over-Year Growth
Current Fiscal Year:
- EPS Growth: +34.04%
- Revenue Growth: +24.47%
Next Fiscal Year:
- EPS Growth: +26.9%
- Revenue Growth: +15.8%
Analyzing Vertiv's Valuation
While Vertiv's performance has been strong, a closer look at its valuation metrics is essential for investors considering its future potential. The stock's rapid appreciation has pushed its valuation to levels that are significantly higher than its industry peers.
Currently, Vertiv trades at 42.3 times its current fiscal year EPS estimates. This is a substantial premium when compared to the peer industry average of 17.1 times. Similarly, on a trailing cash flow basis, the stock trades at 44.4 times, far exceeding the peer group's average of 14.6 times.
The company's PEG ratio, which measures the relationship between its price/earnings ratio and earnings growth, stands at 1.43. While a PEG ratio around 1.0 is often considered fair value, the 1.43 figure suggests the stock's price may already reflect a significant portion of its expected future growth.
"While Vertiv has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics..."
Despite the premium valuation, Vertiv holds a Zacks Rank of #2 (Buy), largely due to rising earnings estimates. Its Zacks Style Scores are mixed, with an 'A' for Growth but a 'D' for both Value and Momentum, resulting in an overall VGM Score of 'B'. This profile suggests the stock is most suitable for investors prioritizing growth over value.
A Look at the Competitive Landscape
To provide a broader perspective, it is useful to compare Vertiv with other companies in its sector. One notable industry peer is Leidos Holdings, Inc. (LDOS), which also presents a solid investment case.
Leidos also holds a Zacks Rank of #2 (Buy) and demonstrates a more balanced profile with Style Scores of 'B' for both Value and Growth. The company recently beat its consensus earnings estimate by an impressive 22.05%.
Leidos Holdings (LDOS) by the Numbers
- Stock Performance: Gained 7.8% over the past month.
- Valuation: Trades at a forward P/E of 17.07X and a P/CF of 15.24X, which are more in line with industry averages.
- Forecasts: Expected to post earnings of $11.22 per share on revenue of $17.15 billion for the current fiscal year.
The Computers - IT Services industry itself is positioned favorably, ranking in the top 31% of all industries tracked by Zacks Investment Research. This suggests that the sector as a whole benefits from positive tailwinds, which could support further growth for well-positioned companies like Vertiv and Leidos.
While Vertiv's high valuation may warrant caution, its consistent earnings beats, strong growth forecasts, and positive industry dynamics suggest that it may still have room for further gains, particularly for growth-focused investors.
