Vertiv Thriving on AI, Cloud Trends

VRT designs, manufactures, and services power and room cooling solutions for data centers. The company is at the center of scaled computer infrastructure, becoming a bigger player in both AI and cloud computing. The company opened a new manufacturing facility in South Carolina in September.

Vertiv grew its organic orders by 57% in the second quarter. It has also increased its earnings performance expectations, with 46% growth in EPS expected for fiscal 2024 and 28% in fiscal 2025, to reach $3.31 per share. This is after VRT grew its bottom line last year by 230%.

It’s no wonder VRT shares have gained 114% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Big Money Buys Up Vertiv Shares

Institutional volumes reveal plenty. In the last year, VRT has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in VRT shares, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Vertiv.

Vertiv Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, VRT has had strong sales and EPS growth:

• 3-year sales growth rate (+16.3%)
• 3-year EPS growth rate (+228%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +28%.

Now it makes sense why the stock has been powering to new heights. VRT is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

VRT has been a top-rated stock at MAPsignals for a long time. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report numerous times in the last year. The blue bars below show when VRT was a top pick…gaining value with time.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Vertiv Price Prediction

The VRT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in VRT at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.