Vertiv is Monday's selection for IBD 50 Growth Stocks To Watch as shares now sit in a clearly defined cup base with a buy point of 109.27, an all-time high. Vertiv stock rallied to that high in May before forming the 18-week base.
Shares fell but found support at their 200-day moving average within the base after second-quarter earnings results on July 24. Now the stock resides in an early-stage base, according to IBD MarketSurge. That could net higher gains for investors.
Vertiv's results showed sales of $1.9 billion, 13% higher than the year-earlier quarter, while earnings of 67 cents per share grew 46%. The company increased its sales outlook for 2024 to $7.7 billion at the midpoint, $50 million higher than its earlier outlook.
Expectations Growing
For the third quarter, the company expects sales of $1.96 billion at the midpoint with earnings of 67 cents per share. Vertiv stock analysts polled by FactSet have set their expectations higher with earnings of 69 cents per share on sales of $1.98 billion.
Vertiv provides digital infrastructure for data centers. Its power and cooling systems help manage artificial intelligence workloads and ensure inference tasks continue even during a power outage. The company also makes energy storage systems that data centers can use for their power needs.
Vertiv has partnered with leading chipmakers such as Nvidia and Intel to keep their AI operations running. The company joined the Nvidia Partner Network in March, accessing the network's technical support, training and collaboration opportunities.
Vertiv Stock Fund Ownership Increases
Vertiv holds a Composite Rating of 96 and a near-ideal EPS Rating of 98. Its Relative Strength Rating of 96 is also a sign of strong price performance.
Fund ownership has been increasing over the past seven quarters. Institutional ownership of the stock stands at 56%. The stock's Accumulation/Distribution Rating of B- also shows funds have been net buyers in recent weeks. The Allspring Growth Fund (SGRAX) and Artisan MidCap Fund (ARTMX) hold shares of Vertiv stock.
Shares started trading on the New York Stock Exchange in February 2020 under the new ticker after a merger with GS Acquisition Holdings.
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