Vertiv Holdings Co (VRT) Stock

Baron Funds, an investment management firm, published its fourth-quarter 2024 investor letter for the "Baron Small Cap Fund." You can download the letter here. During the quarter, the fund decreased by 0.99% (Institutional Shares), while the Russell 2000 Growth Index rose by 1.70% and the larger Russell 3000 Index increased by 2.63%.

We have just released a list of 10 Unstoppable Stocks to Invest in for 2025. In this article, we will examine how Vertiv Holdings Co (NYSE:VRT) compares to other top stocks to buy in 2025. According to the latest earnings report from FactSet on January 24, 2025, the Q4 2024 earnings season is underway.

Vertiv is expecting a positive outlook for the fiscal year 2025, with faster sales growth and better profit margins, predicting an organic sales increase of 16-18% and earnings per share of $3.50-3.60. The company's solid backlog, partnerships, and growth in liquid cooling and modular solutions set it up for strong expansion as these technologies are widely adopted. Management anticipates that the global data center market will grow at a 24% annual rate until 2028, which could greatly boost liquid cooling sales.

Vertiv (VRT) experienced a significant rise in its stock price during the last trading session, with trading volume exceeding the usual amount. However, the recent changes in earnings estimates might not lead to additional price growth in the short term.

DeepSeek, a start-up from China, raises concerns regarding the increasing energy needs of AI technology.

Many artificial intelligence stocks dropped on Monday as concerns about the high expenses of creating the technology were raised.

I am raising my rating for Vertiv Holdings Co to "Buy" because of their steady earnings performance, strong financial health, and high demand for AI-related products. In their Q3 report, Vertiv experienced a 19% increase in sales compared to last year, an 88% rise in net profit, and improved profit margins, indicating more positive results ahead. I believe Vertiv's future earnings growth will be supported by favorable industry trends and the chance to improve their profit margins compared to competitors.

Vertiv (VRT) has a strong track record of surprising with its earnings and currently has the right mix of factors that suggest it may exceed expectations in its upcoming quarterly report.

In the latest trading session, Vertiv Holdings Co. (VRT) finished at $132.59, showing an increase of 0.45% compared to the day before.