VRT a run up into earnings?

NYSE:VRT   Vertiv Holdings, LLC
VRT has been on a tear lately and they are expected to have good earnings. Vertiv Holdings, LLC Class A Common Stock is expected to report earnings on 02/21/2024. Not financial advice, DYOR...

This is the facts according to

Vertiv Holdings Co. (VRT) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +24.5% over the past month versus the Zacks S&P 500 composite's +6.5% change. The Zacks Computers - IT Services industry, to which Vertiv Holdings Co. belongs, has gained 11.9% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate Revisions

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Vertiv Holdings Co. is expected to post earnings of $0.53 per share, indicating a change of +89.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.74 points to a change of +228.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $2.22 indicates a change of +27.6% from what Vertiv Holdings Co. is expected to report a year ago. Over the past month, the estimate has remained unchanged.


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