Zacks Investment Ideas feature highlights: Vertiv, Super Micro Computer and Arista Networks

For Immediate ReleaseChicago, IL – March 17, 2025 – Today, Zacks Investment Ideas feature highlights Vertiv VRT, Super Micro Computer SMCI and Arista Networks ANET.Buy the Dip on Data Center Stocks?As we’ve all become aware, volatility has swept the markets over recent weeks, with tariff talks and other economic data causing a risk-off environment.Many stocks, including those involved in the Data Center side of the AI frenzy – Vertiv, Super Micro Computer and Arista Networks – have faced pressure, with shares well off 2025 highs.But is it a buying opportunity? Let’s take a closer look at the current standing of each.Vertiv Raises Sales OutlookConcerning headline figures in Vertiv’s latest release, it exceeded both consensus EPS and sales expectations, with EPS soaring 77% on the back of a 26% move higher in sales. The growth rates here are quite significant, reflective of healthy underlying demand.Importantly, Vertiv upped its full-year 2025 sales guidance into a band of $9.1 - $9.3 billion, with the midpoint reflecting roughly 16% year-over-year growth. Vertiv also reaffirmed its five-year financial outlook, citing growing AI adoption as a key driver of data generation and data center demand. The company overall remains to benefit in a big way from providing the critical infrastructure needed to support the expansion.Valuation isn’t rich, with the current 0.8X PEG ratio indicative of both growth and value. The current forward 12-month earnings multiple works out to 22.7X, nearly half of 2025 highs of 43.9X.ANET Unlocks Higher ProfitsAnalysts have continued to be bullish on ANET’s EPS outlook over recent months, with the stock holding a favorable Zacks Rank #2 (Buy). Strong quarterly results that have revealed snowballing demand have been a big tailwind for the stock amid the AI frenzy.Strong top line growth looks set to continue nicely, with current year expectations alluding to 18% YoY growth. The stock sports a Style Score of ‘A’ for Growth.In addition, the company’s margin performance has been positive over recent quarters, providing a nice profit boost overall. ANET’s Data Center products are likely higher-margin by nature, helping partly explain the positive change.SMCI Outlook Remains CloudyThe most volatile of the bunch, SMCI shares have been hit hard from their rich 2024 high, down 66% since. A short report took a lot of wind out of its sail last year, but it’s critical to note that the company cleared the allegations after a period of uncertainty.Quarterly results haven’t been enough to shake the stock out of its slump, with the company’s current negative EPS outlook warranting a level of concern. SMCI is currently a Zacks Rank #4 (Sell) due to the cloudy earnings picture.The company is still forecasted to see 15% EPS growth on 59% higher sales in its current fiscal year, undoubtedly impressive, but the growth rates have consistently suffered from downward revisions from analysts over recent months.Bottom LineData Center stocks have been hit hard in the market’s recent wave of volatility, perhaps bringing about nice buying opportunities for those looking to join the trade.All three stocks above are prime considerations for Data Center exposure, though investors should be patient with SMCI until its earnings outlook shifts positively.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Vertiv Holdings Co. (VRT): 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