VenkatP
Physician, Growth & Value Stock Investor
Vertiv's growth and cash flow make its valuation the better risk/reward than Bloom Energy at these prices. It is the one I'd buy first for a long-term hold: 23x next year's earnings with 37% EPS growth, nearly $3B in free cash flow and almost no net debt. Adjusted operating profit of $1.087B topped the $938M guidance ceiling; revenue and EPS also beat estimates. x.comÂ
Vertiv's surging orders and Q3 growth show AI infrastructure demand exceeding expectations. Per WallStEngine, revenue rose 61% to $4.3B, adjusted EPS rose 78% to $2.21, organic orders grew more than 100%, and FY26 guidance was raised above estimates. Vertiv is delivering into accelerating demand for its power and cooling equipment. x.com x.comÂ
HVAC's limited pricing power means Comfort Systems USA's margin expansion story is over. If supply and demand return to normal, operating margins could fall toward the historical norm of about 5%, from 16.5% in the latest quarter shown. x.comÂ
Vertiv is a great company that should be a long-term winner even if it struggles short term. In the near term there is cautious optimism that it holds its new floor in the $250s. Its market cap is too high for personal buying right now, though. x.comÂ
Vertiv's power and cooling gear is benefiting from the AI data-center build-out. Q3 net sales rose 61%, operating profit 90% and net income 92%. There is no more direct picks-and-shovels bet on AI infrastructure than Vertiv. Grade: A. x.comÂ
Vertiv is a great company, supplying the power and cooling AI data centers need as rack densities climb past 100kW, with its cooling systems a major draw. Its liquid-cooling, power, heat-rejection and prefabricated modular systems bring more of the data-center stack under one roof, which could become a meaningful competitive advantage. Grid power and thermal capacity, not silicon supply, are now the limiting factor in AI. x.com x.comÂ
Celestica is cheaper than Vertiv and growing faster, with margin expansion as it moves up the value chain, though it is more concentrated. Vertiv is still loved long term, but it is up 265% over the last year. In a reply that prompted the comparison, a post says AI stocks look euphoric and extended, 40-100% above their 50-day averages, and likely sideways at best for three months. x.comÂ
Vertiv is likely to do well as the AI buildout expands, and the market is making the same mistake on it twice; it remains a buy. x.comÂ
Comfort Systems USA, a contractor installing HVAC and electrical systems inside AI data centers, trades at nearly twice Nvidia's forward earnings multiple, even though Nvidia's chips and CUDA ecosystem made the entire buildout possible. x.comÂ
Vertiv's broad earnings beats strengthen the case that it can scale profitably despite execution risk. Revenue grew 61.2% year over year versus 40.1% expected, and operating margin reached 25.2% versus 24.6% expected. Full-year guidance of $14.65B in revenue and $7.15 in EPS exceeds estimates of $14.008B and $6.73. x.comÂ