Should You Buy, Sell, or Hold Vertiv Stock Before Q2 Earnings?

Vertiv VRT is set to report its second-quarter 2025 results on July 30.For the second quarter of 2025, revenues are expected to be between $2.325 billion and $2.375 billion. Organic net sales are expected to increase in the 19% to 23% range. VRT expects second-quarter 2025 non-GAAP earnings per share between 77 cents and 85 cents.The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.28 billion, indicating year-over-year growth of 16.60%. The consensus mark for earnings is pegged at 83 cents per share, which has increased by a penny over the past 30 days, indicating 23.88% year-over-year growth.Vertiv’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 10.42%, on average. Let’s see how things have shaped up prior to this announcement.Factors to Note for VRT’s Q2 ResultsVertiv, a cooling and power management infrastructure provider, predominantly serves data center providers and has been capitalizing on robust AI-driven order growth. The growing focus on thermal management by data center operators aligns well with Vertiv’s strengths, and the company is expected to meet the increasing demand with advanced, efficient solutions in the to-be-reported quarter.The company is expected to benefit from strong sales growth across its key regions. It expects 5% sequential quarterly growth and 21% year-over-year growth in sales for the second quarter of 2025, driven by strong performance in the Americas and APAC regions. VRT’s expanding portfolio is a major positive. In June, Vertiv announced its energy-efficient 142KW cooling and power reference architecture for the NVIDIA NVDA GB300 NVL72 platform. Vertiv solutions are available as SimReady 3D assets in the NVIDIA Omniverse Blueprint for AI factory design and operations.VRT’s rich partner base, which includes the likes of Ballard Power Systems, Compass Datacenters, NVIDIA, Oklo OKLO, Intel, and ZincFive, is a key catalyst.VRT Shares Rises Sector, Industry YTDVertiv shares have gained 19.3% year to date (YTD), outperforming the Zacks Computer & Technology sector’s rise of 10.8% and the Zacks Computer IT Services industry’s decline of 9.2%. Vertiv has also outperformed its closest peer, including Schneider Electric SBGSY. Over the same time frame, Schneider Electric stock has returned 15.2%.Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions.VRT Stock’s PerformanceImage Source: Zacks Investment ResearchTechnically, Vertiv shares are displaying a bullish trend as they trade above the 50-day and 200-day moving averages.VRT Trades Above 50-day & 200-day SMAsImage Source: Zacks Investment ResearchVertiv stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.In terms of the 12-month price/book ratio, VRT is trading at 18.71, higher than the sector’s 10.49 and Schneider Electric’s 4.78.Price/Book RatioImage Source: Zacks Investment ResearchExpanding Portfolio & Rich Partner Base Help VRT’s ProspectsVertiv is expanding its capacity across liquid cooling, thermal, UPS, switchgear, busbar, and modular solutions to accommodate AI-driven demand growth. It currently has 23 manufacturing plants globally.Vertiv’s partnership with NVIDIA has been a key catalyst.  In May 2025, the company confirmed its alignment with NVIDIA’s AI roadmap to deploy 800 VDC power architectures ahead of NVIDIA Kyber and Rubin Ultra platforms. Vertiv aims to stay one GPU generation ahead of NVIDIA, providing efficient and scalable power solutions for next-generation AI data centers. The partnership highlights Vertiv’s commitment to supporting NVIDIA’s evolving compute demands with advanced power and cooling infrastructure.Further expanding its rich partner base, Vertiv recently announced a collaboration with Oklo to co-develop advanced power and thermal management solutions for data centers, leveraging clean, reliable energy from Oklo’s advanced nuclear power plants.ConclusionAlthough VRT is experiencing rapid growth in the liquid cooling market, a critical area for AI and high-density computing, it is also facing fierce competition in this domain. Concerns over tariff headwinds and stretched valuation make VRT stock a risky bet.VRT currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Schneider Electric SE (SBGSY): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis Report Oklo Inc. (OKLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks