Here's Why Vertiv Holdings Co. (VRT) is a Strong Momentum Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and industrial environments. Vertiv serves essential industries, including cloud computing, financial services, healthcare, transportation, manufacturing, energy, government, education, retail and social media.
VRT sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is down 4.3% and up 15.5% over the past one-week and four-week period, respectively, and Vertiv Holdings Co. has gained 96.2% in the last one-year period as well. Additionally, an average of 7,917,655 shares were traded over the last 20 trading sessions.
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.21 to $3.76 per share. VRT boasts an average earnings surprise of 10.7%.
VRT should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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