BN · rank #9 · 2026-10-23
VRT
NYSE · $75.30B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.37 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +30.5% |
| Forward net margin Consensus forward net margin. | +15.8% |
| Net margin TTM Trailing twelve month net margin. | +15.1% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.7% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.84 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.14× |
| Analyst upside Spread between the consensus 12m target and the current price. | +70.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | +6% |
| Market cap (USD) | $75.30B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Vertiv designs, manufactures and services power, thermal and liquid-cooling infrastructure that is a hard physical bottleneck for AI data-center buildout, with $14 billion in 2026 guided revenue and a ~$15 billion backlog entering the year.
Rationale
The bottleneck-solver signal is structurally reinforced: VRT holds reference-architecture partnerships with NVIDIA and Intel, commands a multi-year backlog, is growing organically at 31%, and the $1.45B UIG acquisition extends its moat upstream into microgrid and onsite-generation—exactly the next power bottleneck hyperscalers face.
Material risks
- 1Hyperscalers internalizing power and cooling design (the classic sole-supplier displacement risk) is the primary thesis-breaker—if customers like Microsoft or Google vertically integrate grid-interconnection or liquid-cooling, backlog conversion deteriorates and the bottleneck premium collapses.
- 2The $1.45B UIG acquisition (plus up to $1.15B earnout) closes in Q4 2026 just as earnings are reported October 28, creating simultaneous integration execution risk, regulatory uncertainty, and potential capital-structure noise that could obscure underlying organic momentum.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.