VRT Rides On Strong Organic Order Growth: A Sign for More Upside?

Vertiv VRT is benefiting from strong organic order growth, which signals promising upside potential. In the second quarter of 2025, organic orders grew 15% year over year and 11% sequentially, surpassing $3 billion in orders for the first time. Growth was driven by an extensive product portfolio that spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions.The trailing 12-month organic orders growth stood at 11%, reflecting sustained momentum. The company’s book-to-bill ratio of 1.2x highlights its ability to build a robust backlog, which now stands at $8.5 billion, representing a 21% year-over-year increase and a 7% sequential increase. Regional performance has been a key driver of Vertiv’s growth. The Americas led the charge with mid-40% growth, followed by APAC with mid-30% growth, and EMEA delivering high single-digit growth.The growing diversity of Vertiv’s customer base and pipeline is another positive indicator. The company’s collaborations with industry leaders like CoreWeave and Oklo further highlight its commitment to innovation and its role in shaping the future of data center infrastructure. As demand for data center infrastructure accelerates, Vertiv’s strong organic order growth positions it well for continued market leadership and long-term upside.Acquisitions have also played an important role in expanding Vertiv’s footprint. The company recently acquired Belgium-based Waylay NV to strengthen its AI-driven monitoring, automation, and control capabilities for power and cooling systems in data centers.VRT Suffers From Stiff CompetitionVertiv is facing increasing competition from ABB ABBNY and Eaton ETN, both of which are expanding their capabilities in the data center infrastructure market.ABB is strengthening its position in the data center infrastructure market with double-digit order growth in the second quarter of 2025, driven by demand across North America, China, Asia, and Europe. ABB’s localized solutions and advanced technologies, such as the Emax 3 air circuit breaker, further strengthen its competitive position in the data center infrastructure market.Eaton is aggressively expanding its capabilities in the data center infrastructure market. The company’s data center orders jumped approximately 55% year over year, and sales were up 50% in the second quarter of 2025 compared to the second quarter of 2024.  This growth was driven by both multi-tenant and hyperscale customers. Eaton’s acquisition of Resilient Power Systems further strengthens its power distribution offerings for data centers.Vertiv’s Share Price Performance, Valuation, and EstimatesVRT’s shares have gained 18.2% year to date. The broader Zacks Computer & Technology sector has appreciated 13.4%, while the Zacks Computers - IT Services industry has plunged 15.1% in the same period.Vertiv Stock's PerformanceImage Source: Zacks Investment ResearchVertiv stock is trading at a premium, with a trailing 12-month Price/Book of 16.40X compared with the Computer and Technology sector’s 10.21X. VRT has a Value Score of D.Price/BookImage Source: Zacks Investment ResearchThe consensus mark for 2025 earnings is pegged at $3.82 per share, up by 7% over the past 30 days. This indicates a 34.04% increase from the reported figure of 2024.Vertiv Holdings Co. Price and Consensus Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. QuoteVertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Vertiv Holdings Co. (VRT): Free Stock Analysis Report ABB Ltd (ABBNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks