Vertiv Holdings Co-A (NYSE:VRT) Presents a High Growth Momentum Breakout Opportunity

Vertiv Holdings Co-A (NYSE:VRT) has become a notable option for investors focused on high growth momentum, joining solid fundamental growth with a technically good breakout pattern. The stock was found using a screening method that looks for securities with a High Growth Momentum Rating over 4, a Technical Rating over 7, and a Setup Rating over 7. This method tries to find firms showing good earnings speed-up, positive estimate changes, and increasing profit margins, key parts of the CANSLIM and Minervini methods, while also showing good technical conditions for entry.

Fundamental Growth Momentum

Vertiv’s operational results match closely with the points highlighted in high growth momentum investing. The company has shown very good growth in important financial measures, backed by speeding-up need for digital infrastructure solutions. A number of items add to its High Growth Momentum Rating of 6:

• Earnings and Revenue Growth:

  • TTM EPS growth of 53.2% and revenue growth of 26.3% year-over-year.
  • Recent quarterly EPS growth rates have been regularly good, with the newest quarter up 41.8% year-over-year, coming after growth of 48.8%, 76.8%, and 46.2% in earlier quarters.
  • Revenue growth has also been solid, with the latest quarter showing a 35.1% increase compared to the same time last year.

• Profit Margin Expansion:

  • Net profit margins have grown notably, from 6.3% two quarters ago to 12.3% in the newest quarter, showing better operational efficiency and pricing ability.

• Estimate Revisions and Surprises:

  • Analysts have changed next year’s EPS estimates upward by 6.8% over the past three months, showing increasing positive feelings about future results.
  • The company has exceeded EPS estimates in each of the last four quarters, with an average surprise of 11.1%.

These measures are important for high growth momentum plans, as they show not only past results but also future-looking positive feelings and operational gains that can lead to continued good performance.

Technical Strength and Setup Quality

From a technical view, Vertiv shows good momentum and a clear consolidation pattern, making it an interesting option for breakout traders. According to the detailed technical report, the stock has a Technical Rating of 9 and a Setup Rating of 8. Important technical points include:

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near the top of its 52-week range. It has done better than 85% of all stocks in the market over the past year.

• Consolidation Pattern: The stock has been trading inside a range of about $118,$142 over the past month and is now nearing the top of this range. This consolidation time has made a possible breakout pattern, with a clear resistance level near $143.70.

• Support and Risk Management:

  • A good support area is present between $122.84 and $132.12, made by a mix of moving averages and trendlines.
  • This gives a clear stop-loss level, helping to control downside risk if the breakout does not happen.

The mix of a high Technical Rating and a good Setup Rating shows that Vertiv is not only in a solid uptrend but also gives a positive risk/reward profile for entry. This fits with the plan of entering stocks during consolidation times before they continue their upward momentum.

Conclusion

Vertiv is a significant example of a stock that fits both fundamental and technical standards for high growth momentum investing. Its good earnings growth, margin growth, and positive analyst changes highlight its fundamental strength, while its technical view suggests a timely chance for breakout traders. For investors following methods like CANSLIM or Minervini, these items together point to a possible continuation of good performance.

For those wanting to look into similar chances, more screening results can be found using this High Growth Momentum Breakout Setups Screen.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.