Vertiv VRT continues to demonstrate impressive upward momentum, consistently trading above its 200-day and 50-day simple moving averages (SMA), which are key indicators of price stability and long-term bullish trends. As of Monday, Vertiv was trading at $128.41, which surpassed both its 200-day SMA of $106.47 and 50-day SMA of $103.91, highlighting a continued uptrend.
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The technical strength, along with the stock’s sustained momentum, reflects positive market sentiment and investor confidence in Vertiv’s financial health and growth prospects.
Vertiv shares have gained 13% year to date, outperforming the broader Zacks Computer and Technology sector’s increase of 6.1%. The Zacks Computers – IT Services industry declined 7.3% in the same time frame. VRT stock has also outperformed its closest peer, Eaton ETN, which is making strong efforts to advance its sustainable energy solutions and expand its market presence. Eaton shares have gained 7.6% in the year-to-date period.
Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, is noteworthy. In the trailing 12 months, organic orders grew approximately 20%, with a book-to-bill of 1.4 times for the first quarter of 2025, indicating a strong prospect. Backlog grew 10% sequentially and 25% year over year to $7.9 billion.
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Vertiv’s partnership with NVIDIA NVDA is a key catalyst. In June 2025, the company 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.
Further expanding its portfolio with NVIDIA 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.
Vertiv’s rich partner base, which includes Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen TGEN, is a key catalyst.
In March 2025, Vertiv announced a collaboration with Tecogen to offer advanced natural gas-powered chiller technology to data centers worldwide.
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.
For 2025, revenues are now expected to be between $9.325 billion and $9.575 billion. Organic net sales growth is likely to be between 16.5% and 19.5%.
VRT expects 2025 non-GAAP earnings between $3.45 and $3.65 per share.
Previously, revenues were projected between $9.125 billion and $9.275 billion for 2025. Organic net sales growth is expected to be between 15% and 17%. VRT projected 2025 non-GAAP earnings per share between $3.50 and $3.60.
For second-quarter 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 Vertiv’s second-quarter 2025 revenues is pegged at $2.27 billion, suggesting growth of 16.48% year over year.
The Zacks Consensus Estimate for second-quarter 2025 earnings is currently pegged at 82 cents per share, unchanged over the past 30 days. The figure indicates a year-over-year increase of 22.39%.
The Zacks Consensus Estimate for Vertiv’s 2025 revenues is pegged at $9.51 billion, suggesting growth of 18.71% year over year.
The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.55 per share, unchanged over the past 30 days. This indicates a 24.56% increase from the 2024 reported figure.
Vertiv 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 18.35X, compared with the broader Computer and Technology sector’s 10.12X.
Vertiv stock also trades at a higher P/B multiple compared to other industry peers, such as Eaton. At present, Eaton has a P/B multiple of 7.53X
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Vertiv 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.
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This article originally published on Zacks Investment Research (zacks.com).