VERTIV HOLDINGS CO-A (NYSE:VRT) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising chart pattern, making it worth a closer look.
Fundamental Strengths
Growth: VRT has shown impressive earnings growth, with EPS increasing by 55.33% over the past year. Revenue has also climbed by 20.45%, signaling strong business momentum. Future growth estimates remain positive, with expected annual EPS growth of 19.13%.
Profitability: The company earns a high profitability rating (9/10), with strong margins—Operating Margin at 17.49% and Return on Equity at 24.98%, outperforming most industry peers.
Financial Health: VRT maintains a solid financial position (8/10), with manageable debt levels and good cash flow coverage. The Altman-Z score of 6.10 indicates low bankruptcy risk.
Valuation: While the P/E ratio appears elevated at 42.18, it is justified by high growth expectations and profitability. The PEG ratio suggests fair valuation relative to growth prospects.
Technical Setup
Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the upper end of its recent range.
Support & Resistance: Key support lies between $123.30 and $126.52, while resistance sits at $131.13. A breakout above resistance could signal further upside.
Relative Strength: VRT outperforms 81% of its industry peers, reflecting strong market leadership.