Vertiv Rises 11% Year to Date: Buy, Sell, or Hold the Stock?

Vertiv VRT shares have gained 10.6% year to date, underperforming the broader Zacks Computer and Technology sector’s increase of 14.1%. The underperformance can be attributed to a challenging macroeconomic environment, including the uncertainty created by higher tariffs, which does not bode well for Vertiv.However, the company has outperformed the Zacks Computers - IT Services industry, which has declined 15.3% in the same time frame. Vertiv shares have also outperformed its peer, Hewlett-Packard HPE, which is expanding its capabilities to serve hyperscale and enterprise AI data center deployments.  Hewlett-Packard shares have gained 8.5% in the year-to-date period.VRT Stock's PerformanceImage Source: Zacks Investment ResearchVertiv benefits from an extensive product portfolio that spans thermal systems, liquid cooling, UPS, switchgear, busbars and modular solutions, which is noteworthy. In the trailing 12 months, organic orders grew approximately 11%, with a book-to-bill of 1.2 times for the second quarter of 2025, indicating a strong prospect. Backlog grew 7% sequentially and 21% year over year to $8.5 billion.Vertiv Benefits From Expanding PortfolioVertiv is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the demand for power. Vertiv’s energy-efficient power and cooling solutions play a critical role in this aspect.Building on this momentum, in August, Vertiv announced the global launch of Vertiv OneCore, a scalable prefabricated data center solution. It integrates power, thermal, and IT infrastructure into a single, factory-assembled system, accelerating high-density deployments and reducing on-site complexity.Acquisitions have played an important role in expanding Vertiv’s footprint. The company acquired Belgium-based Waylay NV in August to strengthen its AI-driven monitoring, automation, and control capabilities for power and cooling systems in data centers.Vertiv Benefits From Rich Partner BaseVertiv’s rich partner base, which includes Ballard Power Systems, Compass Datacenters, NVIDIA NVDA, Oklo, Intel, ZincFive, and Tecogen TGEN, has been a major growth driver.In June 2025, Vertiv announced its energy-efficient 142KW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform. Vertiv solutions are available as SimReady 3D assets in the NVIDIA Omniverse Blueprint for AI factory design and operations.Vertiv’s collaboration with Tacogen has been noteworthy. The collaboration with Tecogen provides data centers worldwide with advanced natural gas-powered chiller technology. This technology addresses power constraints, enabling the deployment of AI at scale. Tecogen’s proven 40-year expertise in clean energy solutions enhances Vertiv’s portfolio of cooling solutions.VRT Raises 2025 GuidanceVertiv is benefiting from its strong portfolio and rich partner base, which will continue to benefit the company’s top-line growth.For 2025, revenues are now expected to be between $9.925 billion and $10.075 billion. Organic net sales growth is expected to be between 23% and 25%.VRT expects 2025 non-GAAP earnings between $3.75 and $3.85 per share. For third-quarter 2025, revenues are expected to be between $2.510 billion and $2.590 billion. Organic net sales are expected to increase in the 20% to 24% range.VRT expects third-quarter 2025 non-GAAP earnings between 94 cents and $1.00 per share.VRT’s Earnings Estimates Revisions Are SteadyThe Zacks Consensus Estimate for third-quarter 2025 earnings is currently pegged at 99 cents per share, which has remained unchanged over the past 30 days. The figure indicates a year-over-year increase of 30.26%.The Zacks Consensus Estimate for Vertiv’s 2025 revenues is pegged at $9.97 billion, suggesting growth of 24.47% year over year.The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.82 per share, which has increased 0.79% over the past 30 days. This indicates a 34.04% increase from the 2024 reported figure.Vertiv Holdings Co. Price and Consensus Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. QuoteVertiv Stock is Trading at a PremiumVertiv is currently overvalued, as suggested by a Value Score of D.In terms of the trailing 12-month Price/Book, Vertiv is currently trading at 15.36X, compared with the broader Computer and Technology sector’s 10.37X and Hewlett Packard’s 1.27X.VRT ValuationImage Source: Zacks Investment ResearchConclusionVertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. These factors justify the company’s premium valuation. Vertiv stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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 Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report Tecogen Inc. (TGEN): Free Stock Analysis Report Vertiv Holdings Co. (VRT): 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