Stockchase Insights
Vertiv Holdings
VRT-N
BUY ON WEAKNESS
Feb 12, 2025
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
EPS was 99c, ahead of estimates of 82c; revenue of $2.35B beat estimates of $2.16B. For 2025, forecast is for $9.13B in sales, vs estimates $9.12B. EPS $3.50 to $3.60, vs estimates $3.54. Q1 forecast was mostly in line with estimates. Results are generally good, and the company might be being conservative with its forecast. Investors were looking for more. But good growth is still very much expected, and we would be OK buying a bit into the dip, with the stock at 32X earnings now. Unlock Premium - Try 5i Free
Excellent company, however other options like NVIDIA. 5 year business case is very strong. If company is able to hold on to unique position in the market - could be a good buy. Would recommend selling on strength. Outlook for viability of technology is difficult to determine.
He bought it back today on a dip. The quarter was excellent, growing 13-15% in various metrics. Everything is in place for growth. Quarters and reactions to them are fickle.
We don't know how much they source from China, so we don't know the impact of tariffs. They can pass on prices to customers. Growth is above the market, but sustainable.
This will probably go down 10-15% after today's tariff news. Many feel it's a broken stock, though is doing well, but that doesn't matter now becayse the market is highly emotional.
Bounced off support level, so that's good news. He's looking at a near-term (1-year) chart, so take that into account. Consolidating around the neckline, and then broke out. Make sure that neckline is not broken. Might retrace, but generally looks OK. Next resistance ~$140. Decent-looking picture.
EPS was 99c, ahead of estimates of 82c; revenue of $2.35B beat estimates of $2.16B. For 2025, forecast is for $9.13B in sales, vs estimates $9.12B. EPS $3.50 to $3.60, vs estimates $3.54. Q1 forecast was mostly in line with estimates. Results are generally good, and the company might be being conservative with its forecast. Investors were looking for more. But good growth is still very much expected, and we would be OK buying a bit into the dip, with the stock at 32X earnings now.
Unlock Premium - Try 5i Free