Vertiv Holdings (NYSE:VRT) has been on a remarkable run, delivering a 162.7% gain over the past twelve months and outperforming 95% of all stocks in the market. But with that level of performance, the question for growth-oriented investors becomes: is there still a viable entry point, or has the ship already sailed?
A targeted screening approach can help answer that question. By combining three distinct criteria, a High Growth Momentum (HGM) Rating above 4, a Technical Rating (TA) above 7, and a Setup Rating above 7, investors can identify stocks that not only have strong underlying earnings momentum but also exhibit favorable chart patterns and consolidation setups. This methodology, rooted in growth investing principles from CANSLIM and Mark Minervini, seeks to find companies that are accelerating in fundamentals while simultaneously building a technical base for a potential breakout. Vertiv emerged from this screen, and here is a closer look at why it fits the bill.
Fundamental Growth: A High Growth Momentum Score of 6
The ChartMill High Growth Momentum Rating evaluates several key aspects of a company’s earnings and revenue trajectory. Vertiv’s score of 6 out of 10 indicates a solid profile, though not a perfect one. The primary drivers behind that score are clear across the fundamental data:
- Earnings per Share (TTM): $4.72, a 54.2% increase year-over-year.
- EPS Growth (Q2Q): The most recent quarter saw an 82.8% surge compared to the same period last year, while the previous quarter delivered 37.4% growth. This shows a strong acceleration in recent earnings.
- Surprise Factor: Vertiv has beaten EPS estimates in each of the last four quarters, with an average beat of 14.5%. Consistent positive surprises are a hallmark of high growth momentum.
- Sales Growth: Revenue grew 29.0% year-over-year on a TTM basis, and the most recent quarter saw a 30.1% increase, showing that top-line growth remains solid.
- Profit Margin Expansion: The profit margin for the most recent quarter stands at 14.7%, up from 12.3% three quarters ago. Expanding margins suggest the company is gaining operating leverage, which is a positive sign for quality growth.
- Analyst Revisions: Over the last three months, analysts have revised next year’s EPS estimates upward by 8.0%, indicating increasing confidence in the company’s trajectory.
While the growth is not accelerating sequentially every quarter, EPS growth decelerated slightly two quarters ago before the recent jump, the overall picture is one of a company firing on nearly all cylinders. For high growth momentum investors, these are the kinds of numbers that typically precede sustained price appreciation.
Technical Strength: A Rating of 9
Strong fundamentals mean little if the stock is already in a downtrend or extended beyond a sensible entry. Vertiv’s Technical Analysis report shows a rating of 9 out of 10, reflecting excellent technical health.
The long-term trend remains positive, and the short-term trend is neutral, which is not a negative; neutral can be a sign of consolidation after a strong move. The stock is trading near the top of its 52-week range, with a current close of $323.92 versus its 52-week high of $379.94. The relative strength rating stands at 95.9, meaning it has outperformed nearly all stocks in the database over the past year.
Moving averages are all sloping upward (20-day, 50-day, 100-day, and 200-day SMA), confirming a bullish structure. However, in the last month, the stock has traded between $275.18 and $358.54, a relatively wide range, and is currently in the middle. This suggests it may be building a base rather than extending parabolicly.
Setup Quality: A Rating of 7
A setup rating of 7 indicates that Vertiv is currently forming a recognizable consolidation pattern. The report notes reduced volatility in recent sessions, a sign that the stock is “coiling” for the next move.
Support is identified just below at a zone from $300.50 to $307.20, formed by a combination of moving averages and trend lines. Resistance sits at $349.19 (from a daily trend line) and $357.97 (from a horizontal line).
The report suggests a potential trade setup: a buy stop entry at $349.20, just above resistance, with a stop loss at $300.49, below that support zone. This would represent a maximum risk of roughly 14%, and with a 1% portfolio risk allocation, an investor could deploy about 7.2% of capital into this setup. Importantly, the report emphasizes that this is an automatically generated suggestion and all entries and exits should be validated personally, but it does show that a clear, actionable pattern is present.
Why This Combination Matters
The reason this screen holds value is that it filters for all three critical elements at once. A high HGM rating ensures the fundamental story is real. A high TA rating confirms the stock is in an uptrend and not a falling knife. A high setup rating gives the investor a defined entry point with clear risk parameters. Without the setup rating, an investor might buy a great stock that is already extended, increasing the risk of an immediate drawdown. Without the TA rating, a strong earnings report might be wasted on a stock whose chart says it’s headed lower.
Vertiv checks all three boxes. The fundamentals show a growth company with accelerating earnings, expanding margins, and positive revisions. The technicals show a stock that has maintained its uptrend and is currently building a base. And the setup rating indicates that a breakout above the $349 resistance could offer a lower-risk entry.
More Results
Interested in finding similar stocks that combine high growth momentum with a technical breakout setup? You can run this exact screen yourself and explore additional candidates. Click here to access the full High Growth Momentum Breakout Setups Screen and see the latest results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own due diligence and consider consulting a financial advisor before making any trading decisions. Past performance is not indicative of future results.
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Vertiv Holdings (NYSE:VRT): Still a High Growth Momentum Play After a 162.7% Run
Vertiv Holdings (NYSE:VRT) has been on a remarkable run, delivering a 162.7% gain over the past twelve months and outperforming 95% of all stocks in the market. But with that level of performance, the question for growth-oriented investors becomes: is there still a viable entry point, or has the ship already sailed?
A targeted screening approach can help answer that question. By combining three distinct criteria, a High Growth Momentum (HGM) Rating above 4, a Technical Rating (TA) above 7, and a Setup Rating above 7, investors can identify stocks that not only have strong underlying earnings momentum but also exhibit favorable chart patterns and consolidation setups. This methodology, rooted in growth investing principles from CANSLIM and Mark Minervini, seeks to find companies that are accelerating in fundamentals while simultaneously building a technical base for a potential breakout. Vertiv emerged from this screen, and here is a closer look at why it fits the bill.
Fundamental Growth: A High Growth Momentum Score of 6
The ChartMill High Growth Momentum Rating evaluates several key aspects of a company’s earnings and revenue trajectory. Vertiv’s score of 6 out of 10 indicates a solid profile, though not a perfect one. The primary drivers behind that score are clear across the fundamental data:
While the growth is not accelerating sequentially every quarter, EPS growth decelerated slightly two quarters ago before the recent jump, the overall picture is one of a company firing on nearly all cylinders. For high growth momentum investors, these are the kinds of numbers that typically precede sustained price appreciation.
Technical Strength: A Rating of 9
Strong fundamentals mean little if the stock is already in a downtrend or extended beyond a sensible entry. Vertiv’s Technical Analysis report shows a rating of 9 out of 10, reflecting excellent technical health.
The long-term trend remains positive, and the short-term trend is neutral, which is not a negative; neutral can be a sign of consolidation after a strong move. The stock is trading near the top of its 52-week range, with a current close of $323.92 versus its 52-week high of $379.94. The relative strength rating stands at 95.9, meaning it has outperformed nearly all stocks in the database over the past year.
Moving averages are all sloping upward (20-day, 50-day, 100-day, and 200-day SMA), confirming a bullish structure. However, in the last month, the stock has traded between $275.18 and $358.54, a relatively wide range, and is currently in the middle. This suggests it may be building a base rather than extending parabolicly.
Setup Quality: A Rating of 7
A setup rating of 7 indicates that Vertiv is currently forming a recognizable consolidation pattern. The report notes reduced volatility in recent sessions, a sign that the stock is “coiling” for the next move.
Support is identified just below at a zone from $300.50 to $307.20, formed by a combination of moving averages and trend lines. Resistance sits at $349.19 (from a daily trend line) and $357.97 (from a horizontal line).
The report suggests a potential trade setup: a buy stop entry at $349.20, just above resistance, with a stop loss at $300.49, below that support zone. This would represent a maximum risk of roughly 14%, and with a 1% portfolio risk allocation, an investor could deploy about 7.2% of capital into this setup. Importantly, the report emphasizes that this is an automatically generated suggestion and all entries and exits should be validated personally, but it does show that a clear, actionable pattern is present.
Why This Combination Matters
The reason this screen holds value is that it filters for all three critical elements at once. A high HGM rating ensures the fundamental story is real. A high TA rating confirms the stock is in an uptrend and not a falling knife. A high setup rating gives the investor a defined entry point with clear risk parameters. Without the setup rating, an investor might buy a great stock that is already extended, increasing the risk of an immediate drawdown. Without the TA rating, a strong earnings report might be wasted on a stock whose chart says it’s headed lower.
Vertiv checks all three boxes. The fundamentals show a growth company with accelerating earnings, expanding margins, and positive revisions. The technicals show a stock that has maintained its uptrend and is currently building a base. And the setup rating indicates that a breakout above the $349 resistance could offer a lower-risk entry.
More Results
Interested in finding similar stocks that combine high growth momentum with a technical breakout setup? You can run this exact screen yourself and explore additional candidates. Click here to access the full High Growth Momentum Breakout Setups Screen and see the latest results.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own due diligence and consider consulting a financial advisor before making any trading decisions. Past performance is not indicative of future results.
Read full article here »