Vertiv Holdings, LLC

A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT). Shares have added about 12.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Vertiv Holdings Co. before we dive into how investors and analysts have reacted as of late.
Vertiv Q4 Earnings Beat Estimates, Net Sales Up Y/Y
Vertiv Holdings reported fourth-quarter 2025 non-GAAP earnings of $1.36 per share, beating the Zacks Consensus Estimate by 5.80%. The figure jumped 37.4% year over year.
Net sales increased 22.7% year over year to $2.88 billion, surpassing the Zacks Consensus Estimate by 0.07%. Net sales on an organic basis increased 19% year over year.
VRT's Prospects Ride on Strong Backlog
In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15.0 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. The book-to-bill ratio for the fourth quarter was approximately 2.9x, and trailing 12-month organic orders growth was 81% compared with the prior-year period.
Product revenues (which accounted for 82% of total revenues) increased 23.3% year over year to $2.36 billion. Service revenues (18% of total revenues) increased 20.2% year over year to $519.5 million.
Americas’ revenues increased 50.2% year over year (46% organic) to $1.88 billion and accounted for 65.5% of total revenues. Product revenues increased 54.3% year over year (51.2% organic) to $1.56 billion. Service & spares revenues increased 33% year over year (25.2% organic) to $321.9 million in the reported quarter.
Asia and Pacific (APAC) revenues decreased 9.6% year over year (9.3% organic decline) to $492 million and accounted for 17.1% of total revenues. Product revenues increased 13.7% year over year (13.5% organic) to $360.4 million. Service & spares revenues increased 4% year over year (4.5% organic) to $131.6 million in the reported quarter.
Europe, Middle East, and Africa (EMEA) revenues decreased 8.2% year over year (14.1% organic) to $501.7 million and accounted for 17.4% of total revenues. Product revenues decreased 13.3% year over year (18.2% organic decline) to $384.6 million. Service & spares revenues increased 13.7% year over year (3.3% organic) to $117.1 million in the fourth quarter of 2025.
VRT’s Operating Details
Selling, general, and administrative (SG&A) expenses increased 27.7% year over year to $461.6 million. As a percentage of sales, SG&A expenses decreased 60 basis points (bps) year over year to 16%.
Adjusted operating profit jumped 32.5% year over year to $668.1 million. The fourth-quarter non-GAAP operating margin was 23.2%, up 170 bps year over year.
Americas' adjusted operating profit surged 76.7% year over year to $568.2 million. EMEA’s adjusted operating profit decreased 23.6% year over year to $111 million. APAC’s adjusted operating profit decreased 28.8% year over year to $48.7 million.
VRT’s Balance Sheet Remains Strong
As of Dec. 31, 2025, cash and cash equivalents totaled $1.72 billion compared with $1.39 billion as of Sept. 30, 2025.
Long-term debt at the end of the fourth quarter was $2.892.1 billion, down from $2.897 billion reported in the previous quarter.
Cash flow from operating activities was $1 billion for the reported quarter, up from $508.7 million in the prior quarter. Free cash flow was $909.9 million for the fourth quarter.
VRT Raises 2026 Guidance
For 2026, revenues are now expected to be between $13.25 billion and $13.75 billion. Organic net sales growth is expected to be between 27% and 29%.
Vertiv expects adjusted operating profit between $2.98 billion and $3.10 billion. Operating margin is expected to be in the 22%-23% range.
VRT expects 2026 non-GAAP earnings between $5.97 and $6.07 per share.
Free cash flow for 2026 is expected to be between $2.1 billion and $2.3 billion.
For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range.
Vertiv expects adjusted operating profit between $475 million and $515 million. Operating margin is expected to be in the 18.5%-19.5% range.
VRT expects first-quarter 2026 non-GAAP earnings per share between 95 cents and $1.01 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
At this time, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Vertiv is part of the Zacks Computers - IT Services industry. Over the past month, Jack Henry (JKHY), a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended December 2025 more than a month ago.
Jack Henry reported revenues of $619.33 million in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.72 for the same period compares with $1.34 a year ago.
For the current quarter, Jack Henry is expected to post earnings of $1.43 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Jack Henry. Also, the stock has a VGM Score of C.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is Vertiv (VRT) Up 12.2% Since Last Earnings Report?

For Immediate Release
Chicago, IL – March 13, 2026 – Today, Zacks Investment Ideas feature highlights SanDisk SNDK, Micron MU, Bloom Energy BE, Vertiv VRT and Lumentum LITE.
Spring Forward: 5 Indicators Illustrate a Bullish Shift
Despite Market Volatility, Bulls Have the Edge: Here’s Why
Lately, Wall Street investors have had to contend with a choppy market and heightened volatility driven by geopolitical turmoil, inflation concerns, and AI-related spending concerns. However, if there’s one lesson veteran investors understand, it’s to block out the headlines and noise and instead take a non-emotional, hard look at key market indicators. Below are 5 indications that the bulls have a large edge into spring.
Spring Seasonality Favors the Bulls
Seasonal patterns are often studied by investors because they provide a roadmap of the recurring,often predictable price trends that occur at certain times of year on Wall Street. In 2026 in particular, seasonality has proved its mettle. Historical seasonality trends predicted modest gains in January before a correction that occurs in the back half of February and into the beginning of March – and that is exactly what has occurred. However, this same seasonal road map now suggests a robust rally into year-end. In fact, stocks have bottomed on average on March 12th over the past two decades.
Volatility Spikes Lead to Buying Opportunities
Historically, volatility spikes provide some of the best buying opportunities on Wall Street. Often, the CBOE Volatility Index (VIX) spikes represent emotionally driven panic among investors that is detached from the underlying fundamentals of the economy. Over the past few years, spikes above $28 in the VIX have served as strong buy zones for bulls. Earlier this month, VIX spiked above $28 amid fears about geopolitical turmoil in the Middle East.
Inflationary Concerns Are Overblown
The Jones Act, or Section 27 of the Marchan Marine Act of 1920, is a federal law that regulates maritime commerce in U.S. waters and mandates that all goods that are transported by water must be carried on ships that are U.S.-built, flagged, owned, and crewed. However, amid the ongoing conflict between the U.S. and Iran, President Trump has suspended the Jones Act. The suspension of the Jones Act should increase supply flexibility and provide some relief for rising oil and gas prices.
Meanwhile, although high energy prices are putting pressure on prices at the pump, the overall inflation rate remains tame. According to Truflation, which aggregates 35 million real-time data points, U.S. CPI is still just 1.21% - well below the lagging government-provided numbers would suggest.
Leaders Defend Long-Term Support
Despite recent market volatility, several leading AI-related stocks have recently found support at their rising 10-week moving averages, including SanDisk, Micron, Bloom Energy, Vertiv and Lumentum.
Investors are Extremely Fearful
According to the CNN Fear & Greed Index, investors are “extremely fearful.” As Warren Buffett teaches,“Be greedy when others are fearful.”
Bottom Line
Navigating a market defined by geopolitical friction can be challenging. By recognizing that volatility spikes often create better buys than sells, especially when real-time inflation remains manageable, and leading stocks hold their long-term support, investors can position themselves for seasonal strength ahead.
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past 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.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights SanDisk, Micron, Bloom Energy, Vertiv and Lumentum

Despite Market Volatility, Bulls Have the Edge: Here’s Why
Lately, Wall Street investors have had to contend with a choppy market and heightened volatility driven by geopolitical turmoil, inflation concerns, and AI-related spending concerns. However, if there’s one lesson veteran investors understand, it’s to block out the headlines and noise and instead take a non-emotional, hard look at key market indicators. Below are 5 indications that the bulls have a large edge into spring.
Spring Seasonality Favors the Bulls
Seasonal patterns are often studied by investors because they provide a roadmap of the recurring,often predictable price trends that occur at certain times of year on Wall Street. In 2026 in particular, seasonality has proved its mettle. Historical seasonality trends predicted modest gains in January before a correction that occurs in the back half of February and into the beginning of March – and that is exactly what has occurred. However, this same seasonal road map now suggests a robust rally into year-end. In fact, stocks have bottomed on average on March 12th over the past two decades.
Image Source: Carson Investment Research
Volatility Spikes Lead to Buying Opportunities
Historically, volatility spikes provide some of the best buying opportunities on Wall Street. Often, the CBOE Volatility Index (VIX) spikes represent emotionally driven panic among investors that is detached from the underlying fundamentals of the economy. Over the past few years, spikes above $28 in the VIX have served as strong buy zones for bulls. Earlier this month, VIX spiked above $28 amid fears about geopolitical turmoil in the Middle East.
Image Source: TradingView
Inflationary Concerns are Overblown
The Jones Act, or Section 27 of the Marchan Marine Act of 1920, is a federal law that regulates maritime commerce in U.S. waters and mandates that all goods that are transported by water must be carried on ships that are U.S.-built, flagged, owned, and crewed. However, amid the ongoing conflict between the U.S. and Iran, President Trump has suspended the Jones Act. The suspension of the Jones Act should increase supply flexibility and provide some relief for rising oil and gas prices.
Meanwhile, although high energy prices are putting pressure on prices at the pump, the overall inflation rate remains tame. According to Truflation, which aggregates 35 million real-time data points, U.S. CPI is still just 1.21% - well below the lagging government-provided numbers would suggest.
Image Source: Truflation
Leaders Defend Long-Term Support
Despite recent market volatility, several leading AI-related stocks have recently found support at their rising 10-week moving averages, including SanDisk (SNDK), Micron (MU), Bloom Energy (BE), Vertiv (VRT), and Lumentum (LITE).
Image Source: TradingView
Investors are Extremely Fearful
According to the CNN Fear & Greed Index, investors are “extremely fearful.” As Warren Buffett teaches,“Be greedy when others are fearful.”
Image Source: CNN
Bottom Line
Navigating a market defined by geopolitical friction can be challenging. By recognizing that volatility spikes often create better buys than sells, especially when real-time inflation remains manageable, and leading stocks hold their long-term support, investors can position themselves for seasonal strength ahead.
Zacks Names #1 Semiconductor Stock
This 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Spring Forward: 5 Indicators Illustrate a Bullish Shift

For Immediate Releases
Chicago, IL – March 12, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Vertiv Holdings Co. VRT, HubSpot Inc. HUBS, Dell Technologies Inc. DELL, Keysight Technologies Inc. KEYS and Cognex Corp. CGNX.
Here are highlights from Thursday’s Analyst Blog:
Buy 5 AI-Powered Stocks That Surged in the Past Month & Still Have a Upside
The astonishing bull run of Wall Street in the past three years was primarily due to the massive growth of artificial intelligence (AI) across the world. The technology stocks, especially AI plays have soared 300-400% during this period.
However, the technology sector suffered in 2026 owing to concerns related to the continuity of AI trade and geopolitical conflicts in the Middle East, resulting in a crude oil price surge that could push up the inflation rate and lead to serious doubts over whether the Fed will continue its interest rate cuts and accommodative monetary policies.
Despite these headwinds, a handful of AI infrastructure stocks have surged in the past month. Here, we recommend five such stocks that currently carry a favorable Zacks Rank, indicating more upside in the near term.
These stocks are: Vertiv Holdings Co., HubSpot Inc., Dell Technologies Inc., Keysight Technologies Inc. and Cognex Corp. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vertiv Holdings Co.
Zacks Rank #2 Vertiv Holdings benefits from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline.
VRT also benefited from the accelerating digital transformation driven by AI and data center demand. Acquisitions have also played a vital role, with Great Lakes enhancing IT systems and white space solutions, and Weeleay boosting service capabilities through real-time machine data analysis and predictive actions.
Vertiv’s partnership with NVIDIA Corp. is a key catalyst. VRT co-develops an 800-volt DC power architecture with NVIDIA, timed to align with the 2027 rollout of NVIDIA's Rubin Ultra platforms. This keeps VRT one GPU generation ahead of evolving silicon architectures, ensuring that its infrastructure solutions remain relevant as rack power requirements scale toward and beyond the megawatt threshold.
Vertiv Holdings has an expected revenue and earnings growth rate of 33.8% and 46.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 15% over the last 30 days.
HubSpot Inc.
Zacks Rank #1 HubSpot is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS’ starter edition is leading to solid client additions in the lower end of the market.
HUBS has a significant scope in cross-selling its products to the existing customer base. HUBS’ App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses.
HUBS’ AI, which includes cutting-edge features such as AI assistance, AI agents, AI insights, and ChatSpot, is driving more value to its customers. HUBS has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth.
HubSpot has an expected revenue and earnings growth rate of 17.9% and 26.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last seven days.
Dell Technologies Inc.
Zacks Rank #2 Dell Technologies benefits from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. DELL secured $34.1 billion in AI server orders, surpassing shipments and building a strong backlog. Strong enterprise demand for AI-optimized servers aids DELL.
A robust partner base that includes the likes of NVIDIA, Google, and Microsoft has been a major growth driver. AI server demand remained robust, contributing $9 billion in fourth-quarter 2025 revenues. Dell’s enterprise AI customer base surpassed 4,000, with broad adoption across industries.
DELL’s PowerEdge XE9680 AI-optimized server is very much in demand. The launch of advanced AI-optimized servers, including the PowerEdge XE9780 and 9780L platforms supporting up to 256 NVIDIA HGX B300 GPUs per rack, the XE9712 with NVIDIA GB300 NVL72, and the XE7745 supporting NVIDIA RTX Pro 6000 Blackwell GPUs has been noteworthy.
In the last reported quarter, DELL launched the PowerEdge XE9712 supporting NVIDIA's NVL72 GB200. It launched the Dell Infrastructure Rack Sobel system, IR7000 and 5000 in both 21-inch and 19-inch versions, providing up to 96 GPUs in a rack and 786 GPUs in a scalable unit. The strong demand trend bodes well for DELL’s long-term prospects.
Dell Technologies has an expected revenue and earnings growth rate of 24.2% and 23.4%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 12.5% over the last 30 days.
Keysight Technologies Inc.
Zacks Rank #1 Keysight Technologies is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. KEYS’ growing investment in AI-driven advanced nodes, high-bandwidth memory and silicon photonics is induced by high AI-performance requirements driving growth in the semiconductor vertical.
Strong demand for AI data-center network solutions and applications is a tailwind for KEYS. Management’s focus on expanding its business through collaborations with established sector players is positive.
Apart from strength in the 5G domain, KEYS’ efforts in other emerging growth markets like Internet of Things (IoT) and high-speed data centers, bode well for the top line. Particularly, management’s focus on Automotive and Energy, and Aerospace and Defense domains augur well for the long haul. In fact, growth in revenues from Aerospace, Defense and Government end-market deserves a special mention.
Keysight Technologies has an expected revenue and earnings growth rate of 22.8% and 16.9%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.2% over the last 30 days.
Cognex Corp.
Zacks Rank #1 Cognex’s commitment to lead in AI for industrial machine vision is expected to shape its growth trajectory. CGNX is benefiting from structural margin expansion driven by portfolio optimization, pricing firming and identified cost actions. This supports durable operating leverage and healthy cash conversion.
CGNX’s growth is increasingly balanced across logistics, packaging, consumer electronics, semiconductor and a stabilizing auto cycle. A revamped go-to-market model is widening the customer funnel and lifting sales productivity, while an AI-enabled roadmap broadens use cases and mix quality. CGNX’s debt-free balance sheet and consistent buybacks and dividends add support.
Cognex has an expected revenue and earnings growth rate of 7.9% and 23.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.5% over the last 30 days.
Free: Instant Access to Zacks' Market-Crushing Strategies
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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past 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 Names #1 Semiconductor Stock
This 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Vertiv, HubSpot, Dell, Keysight and Cognex

The astonishing bull run of Wall Street in the past three years was primarily due to the massive growth of artificial intelligence (AI) across the world. The technology stocks, especially AI plays have soared 300-400% during this period.
However, the technology sector suffered in 2026 owing to concerns related to the continuity of AI trade and geopolitical conflicts in the Middle East, resulting in a crude oil price surge that could push up the inflation rate and leads to serious doubts over whether the Fed will continue its interest rate cuts and accommodative monetary policies.
Despite these headwinds, a handful of AI infrastructure stocks have surged in the past month. Here, we recommend five such stocks that currently carry a favorable Zacks Rank, indicating more upside in the near term.
These stocks are: Vertiv Holdings Co. VRT, HubSpot Inc. HUBS, Dell Technologies Inc. DELL, Keysight Technologies Inc. KEYS and Cognex Corp. CGNX. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Vertiv Holdings Co.
Zacks Rank #2 Vertiv Holdings benefits from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline.
VRT also benefited from the accelerating digital transformation driven by AI and data center demand. Acquisitions have also played a vital role, with Great Lakes enhancing IT systems and white space solutions, and Weeleay boosting service capabilities through real-time machine data analysis and predictive actions.
Vertiv’s partnership with NVIDIA Corp. is a key catalyst. VRT co-develops an 800-volt DC power architecture with NVIDIA, timed to align with the 2027 rollout of NVIDIA's Rubin Ultra platforms. This keeps VRT one GPU generation ahead of evolving silicon architectures, ensuring that its infrastructure solutions remain relevant as rack power requirements scale toward and beyond the megawatt threshold.
Vertiv Holdings has an expected revenue and earnings growth rate of 33.8% and 46.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 15% over the last 30 days.
HubSpot Inc.
Zacks Rank #1 HubSpot is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS’ starter edition is leading to solid client additions in the lower end of the market.
HUBS has a significant scope in cross-selling its products to the existing customer base. HUBS’ App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses.
HUBS’ AI, which includes cutting-edge features such as AI assistance, AI agents, AI insights, and ChatSpot, is driving more value to its customers. HUBS has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth.
HubSpot has an expected revenue and earnings growth rate of 17.9% and 26.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last seven days.
Dell Technologies Inc.
Zacks Rank #2 Dell Technologies benefits from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. DELL secured $34.1 billion in AI server orders, surpassing shipments and building a strong backlog. Strong enterprise demand for AI-optimized servers aids DELL.
A robust partner base that includes the likes of NVIDIA, Google, and Microsoft has been a major growth driver. AI server demand remained robust, contributing $9 billion in fourth-quarter 2025 revenues. Dell’s enterprise AI customer base surpassed 4,000, with broad adoption across industries.
DELL’s PowerEdge XE9680 AI-optimized server is very much in demand. The launch of advanced AI-optimized servers, including the PowerEdge XE9780 and 9780L platforms supporting up to 256 NVIDIA HGX B300 GPUs per rack, the XE9712 with NVIDIA GB300 NVL72, and the XE7745 supporting NVIDIA RTX Pro 6000 Blackwell GPUs has been noteworthy.
In the last reported quarter, DELL launched the PowerEdge XE9712 supporting NVIDIA's NVL72 GB200. It launched the Dell Infrastructure Rack Sobel system, IR7000 and 5000 in both 21-inch and 19-inch versions, providing up to 96 GPUs in a rack and 786 GPUs in a scalable unit. The strong demand trend bodes well for DELL’s long-term prospects.
Dell Technologies has an expected revenue and earnings growth rate of 24.2% and 23.4%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 12.5% over the last 30 days.
Keysight Technologies Inc.
Zacks Rank #1 Keysight Technologies is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. KEYS’ growing investment in AI-driven advanced nodes, high-bandwidth memory and silicon photonics is induced by high AI-performance requirements driving growth in the semiconductor vertical.
Strong demand for AI data-center network solutions and applications is a tailwind for KEYS. Management’s focus on expanding its business through collaborations with established sector players is positive.
Apart from strength in the 5G domain, KEYS’ efforts in other emerging growth markets like Internet of Things (IoT) and high-speed data centers, bode well for the top line. Particularly, management’s focus on Automotive and Energy, and Aerospace and Defense domains augur well for the long haul. In fact, growth in revenues from Aerospace, Defense and Government end-market deserves a special mention.
Keysight Technologies has an expected revenue and earnings growth rate of 22.8% and 16.9%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.2% over the last 30 days.
Cognex Corp.
Zacks Rank #1 Cognex’s commitment to lead in AI for industrial machine vision is expected to shape its growth trajectory. CGNX is benefiting from structural margin expansion driven by portfolio optimization, pricing firming and identified cost actions. This supports durable operating leverage and healthy cash conversion.
CGNX’s growth is increasingly balanced across logistics, packaging, consumer electronics, semiconductor and a stabilizing auto cycle. A revamped go-to-market model is widening the customer funnel and lifting sales productivity, while an AI-enabled roadmap broadens use cases and mix quality. CGNX’s debt-free balance sheet and consistent buybacks and dividends add support.
Cognex has an expected revenue and earnings growth rate of 7.9% and 23.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.5% over the last 30 days.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy 5 AI-Powered Stocks That Surged Past Month and Still Have Upside

Vertiv Holdings Co. VRT shares ended the last trading session 9.3% higher at $264.35. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 23.6% gain over the past four weeks.
Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions, which is noteworthy.
This company is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of +56.3%. Revenues are expected to be $2.65 billion, up 30.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Vertiv, the consensus EPS estimate for the quarter has been revised 2.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VRT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Vertiv belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow NOW, closed the last trading session 1.9% lower at $121.93. Over the past month, NOW has returned 23.4%.
ServiceNow's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.95. Compared to the company's year-ago EPS, this represents a change of +17.3%. ServiceNow currently boasts a Zacks Rank of #3 (Hold).
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Vertiv (VRT) Soars 9.3%: Is Further Upside Left in the Stock?

Key Points
Early last week, Nvidia announced it would invest $2 billion each in Lumentum and Coherent as part of strategic, multiyear partnerships.
Late Friday, it was announced that both companies had been admitted to the S&P 500.
As one of the leading forces in artificial intelligence (AI), Nvidia (NASDAQ: NVDA) tends to attract a lot of attention. Investors scrutinize each and every move, looking for insight into the state of the industry or for ideas regarding investment opportunities. Just last week, the chipmaker announced strategic partnerships with Lumentum Holdings (NASDAQ: LITE) and Coherent (NYSE: COHR), along with plans to invest $2 billion in each of the optics technology companies.
It appears the forces that be have taken notice. Late last week, the newest additions to the S&P 500 (SNPINDEX: ^GSPC) were announced -- and Lumentum and Coherent made the grade.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The big leagues
The S&P 500 is widely recognized as the most dependable benchmark of U.S. stock market performance, comprised of the 500 leading publicly traded companies in the country. To be considered for admission to the index, a company must meet the following criteria:
Be a U.S.-based company
Have a market cap of at least $22.7 billion
Be highly liquid
At least 50% of outstanding shares must be available for trading
Be profitable on a generally accepted accounting principles (GAAP) basis in the most recent quarter
Be profitable during the preceding four quarters in aggregate
In a press release that dropped after the market close on Friday, Lumentum and Coherent -- along with data center infrastructure provider Vertiv Holdings and pay-TV operator EchoStar -- would be joining the index before the market opens on Monday, March 23.
Admittance to the S&P 500 is a major milestone that offers a measure of credibility and prestige, helping to boost a company's reputation. Moreover, inclusion in the index forces index-tracking funds to buy shares, boosting the company's short-term stock price.
This development comes in the wake of significant partnerships with Nvidia, unveiled just last week. The chipmaker entered into a "multiyear strategic agreement" that included a "multibillion [dollar] purchase commitment," and a $2 billion investment in each.
Regarding the technology, Nvidia said, "Optical interconnect technology and package integration are critical for the continued scaling of AI factories, improving the energy efficiency and resiliency of large-scale AI networks."
Coherent and Lumentum sell optical and photonic networking components that have become crucial components in data centers. Using lasers and dedicated processors to transmit data over optical cables offers high bandwidth, low latency (or reduced lag), and greater energy efficiency. The purchase commitment helps Nvidia secure crucial data center infrastructure components.
Investors have already driven up the stock prices of both Coherent and Lumentum, which have gained 279% and 932%, respectively, over the past year. As such, their valuations have climbed, with Coherent and Lumentum trading at 34 and 45 times next year's expected earnings, respectively.
That said, a significant investment from Nvidia and admission to the S&P 500 make each of these optical component providers worth a look.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 9, 2026.
Danny Vena, CPA has positions in Nvidia. The Motley Fool has positions in and recommends Coherent, Lumentum, Nvidia, and Vertiv. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia Is Investing Billions in These Two Artificial Intelligence (AI) Players. Now They're Joining the S&P 500

Key Points
Vertiv is a leader in data center cooling infrastructure with rapidly growing sales and earnings.
Institutions like BlackRock, State Street, and JPMorgan Chase have been loading up on shares since Q3 2025.
Despite its incredible run over the last year, valuation metrics point to Vertiv potentially being a bargain even at these prices.
One of the more overlooked infrastructure problems with data centers is cooling.
Running advanced artificial intelligence (AI) programs, even on bleeding-edge hardware with loads of computing horsepower, generates a lot of heat. The small fan that's in your laptop or desktop doesn't cut it at that level.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
No, you need advanced cooling systems, beefy industrial air conditioners, and liquid cooling to run a modern data center. A data center is an incredibly expensive investment, and the last thing you want is all your top-notch chips cooking themselves with the heat they generate from running.
Most of the headlines you'll see about AI-related infrastructure shortages have to do with chip hardware, like the current memory shortage, or the gluttonous appetite data centers have for electricity.
Both of those are serious problems, but cooling, which is just as serious an infrastructure concern, doesn't get anywhere near as much attention. Well, not from the media at least. Wall Street is paying close attention, and institutional investors have been pouring money into Vertiv (NYSE: VRT) to profit from the cooling needs of the tech industry and the data centers it's building all over the place.
The surge of investment has seen Vertiv shoot up 199% in the past 12 months. And, based on the latest moves of some of the biggest institutional investors out there, Wall Street seems to think Vertiv's bull run is far from over.
After a look at the company's latest results, I'm inclined to agree with them.
What's Fonzie like?
He's cool. And so is Vertiv. Or, rather, it helps data centers stay cool with an extensive catalog of air- and water-cooling systems for data centers. It also offers server racks, power management hardware, and monitoring systems for data center operation.
It's an end-to-end data center infrastructure company. But the big opportunity here is cooling, which Vertiv offers an extensive list of products to assist with, including in-rack cooling units, evaporative free cooling systems that offer higher power efficiency than conventional HVAC systems, and even custom cooling systems for individual customer needs.
So, who's been buying shares?
Since Sept. 30, 2025, 920 institutional investors have opened new or expanded existing positions in Vertiv.. The biggest names among those investors that have increased their positions are likely BlackRock and State Street, which both increased their positions in Vertiv by 2.38% and 2.29%, respectively, as of Sept. 30, 2025. BlackRock is now Vertiv's second-largest shareholder with 9.43% of all shares now under its control.
JPMorgan Chase had one of the largest purchases, expanding its position by 4.2 million shares of 101.68% as of Sept. 30, 2025.
Still, those are some major votes of confidence from some very serious players on Wall Street. What has them pouring money into Vertiv? Well, the company has been going absolutely ballistic in terms of its financial results.
Cool money
For the whole of 2025, Vertiv saw its net sales hit $10.23 billion, up 26% over 2024 and $30 million above its guidance levels. Its adjusted diluted earnings per share (EPS) saw even better growth, up 47% over 2024 and $0.10 over guidance.
Q4 2024
Q4 2025
year-over-year change (%)
Net Sales
$2.3 billion
$2.8 billion
19%
Diluted EPS
$0.99
$1.36
37%
Operating Profit
$504 million
$668 million
33%
As you can see from the table, Q4's growth alone was impressive, and the company is only projecting its growth streak to continue over 2026. Net sales are expected to climb 28% this year and adjusted operating profits expected to grow 45%.
Vertiv runs a net profit margin of 13%, and it has a fairly healthy balance sheet with a debt-to-equity ratio of 0.82.
Now, Vertiv is trading at a fairly high price-to-earnings (P/E) ratio of 73.24 at present, but that's actually lower than where it was in 2024 at 75.74, even after the company's nearly 200% bull run over the same period.
And, when you factor in earnings growth expected in the future to get Vertiv's price-to-earnings-to-growth (PEG) ratio, it's 0.80, which is below 1, hinting the company is undervalued even at these prices.
The consensus EPS forecast for Vertiv by the end of 2026, per Nasdaq, is $6.15, which is expected to further increase to $8.10 by the end of 2027 and $9.38 by the end of 2028. That's a pretty impressive EPS growth rate of 48.9% for 2026 alone. Keep in mind, Vertiv has beaten annual EPS estimates every year since 2023, which is when much of the AI spending spree began.
In fact, between the end of 2022 (ChatGPT launched in November of that year) and the end of 2023, Vertiv saw its EPS jump 233.9% from $0.53 to $1.77.
And clearly, Wall Street seems to think there's a lot more money to be made by keeping cool. Give Vertiv a look if you want to be cool.
Should you buy stock in Vertiv right now?
Before you buy stock in Vertiv, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vertiv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 9, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, T. Rowe Price Group, and Vertiv. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Artificial Intelligence (AI) Stock That Institutional Investors Are Quietly Loading Up on for 2026

Key Points
These four tickers aren’t hype stocks; they’re the plumbing in solid industries.
Axon Enterprise has switching costs; Vertiv is embedded in AI infrastructure; TransMedics controls a life-critical logistics network; and Fair Isaac has regulatory entrenchment and pricing power.
March 2026 is giving long-term investors something rare: legitimate market and company pullbacks despite some accelerating fundamentals. That suggests opportunities to grab onto.
These four companies aren't speculative bets. Each one generates real revenue, grows at double-digit rates, and dominates a market that is part of everyday life and not going away. Let's find out why they might be good investments in March.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Axon Enterprise
Axon (NASDAQ: AXON) makes TASERs, body cameras, multiple other law enforcement-related products, and the software that ties them together. But describing it that way misses the transformation. Axon has become an artificial intelligence (AI)-powered public safety platform.
Fourth-quarter 2025 revenue hit $797 million, up 39% year over year. Full-year revenue reached $2.8 billion, marking the fourth consecutive year of growth above 30%. Annual recurring revenue surpassed $1.3 billion, growing 35%. Total future contracted bookings stood at $14.4 billion, up 43%.​
The company just set a 2028 target of $6 billion in annual revenue with 28% adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. That's more than doubling the business in three years. The roadmap includes Axon 911 (built on acquisitions of Prepared and Carbyne), Axon Vehicle Intelligence, and Axon Assistant -- an AI tool that automates police report writing.
The valuation is rich, but the execution is richer. This is a long-term hold.
2. Vertiv
If you operate data centers running AI models, you very likely also need power and cooling to keep them running. Vertiv (NYSE: VRT) supplies both to data centers worldwide, and the demand curve is vertical.
Full-year 2025 revenue reached $10.2 billion, up 28% year over year. Adjusted operating margins expanded to 20.4%. Organic orders surged 81%, and the company exited 2025 with a backlog of $15.0 billion -- more than a full year of revenue. Adjusted free cash flow hit $1.89 billion, up 66%. Q4 earnings jumped 37% to $1.36 per share.
In late February 2026, Vertiv launched its OneCore integrated modular solutions and a Digital Twin platform designed for high-density AI data centers, backed by a partnership with Hut 8. The company also raised $2.1 billion through bond offerings to fund expansion. Management targets 22% to 24% operating margins over the medium term.
The AI infrastructure build-out isn't slowing down, and Vertiv is one of the few companies that physically can't be replaced by software. The stock's metrics look good too, for a safe, long-term hold.
3. TransMedics Group
TransMedics Group (NASDAQ: TMDX) operates the Organ Care System (OCS), a technology that keeps donor organs warm and functioning during transport -- replacing the decades-old method of putting them on ice in a cooler. The company also runs its own aviation fleet for organ transport through its National OCS Program.​
Full-year 2025 revenue hit $605.5 million, up 37%. OCS Liver now accounts for 36% of all U.S. liver transplant procedures. The company performed 5,139 U.S. OCS transplants in 2025, up from 3,735 in 2024. It manages the logistics of this with its fleet of 22 aircraft.
Operating profit reached $21.3 million in Q4, representing 13.2% of revenue. Net income for the year was $190.3 million. TransMedics guided for 2026 revenue of $727 million to $757 million, representing 20% to 25% growth. The company holds FDA approvals for heart and lung trials and is expanding into Italy and other European markets.
This is a company building a monopoly in organ logistics -- a market with zero viable competitors and a moral imperative driving adoption.
4. Fair Isaac
Fair Isaac (NYSE: FICO) is the credit score company of all credit score companies. I hear its name in commercials, on the radio, and coming out of every salesman's mouth. The vast majority of mortgage, auto loan, and credit card decisions in America are made with the help of a FICO score. It has pricing power that borders on the obscene.
Fiscal year 2025 revenue was $1.99 billion, up 15.9%. Net income hit $651.9 million with a 32.8% net profit margin. Q4 revenue was $512 million with a 45.7% operating margin. Earnings per share (EPS) have grown at an average annual rate of 22.2% over the past decade.
The current catalyst is FICO Score 10T, a more predictive scoring model that incorporates trended credit data. I was a bit skeptical at first, but its adoption in the conforming mortgage market will drive incremental licensing revenue for years.
FICO also runs a growing software analytics business that expands its addressable market beyond credit scoring. The stock has pulled back around 25% year to date, creating a rare entry point for a near monopoly with expanding margins.
The company also announced a $1.5 billion stock buyback earlier this month. It's a strong buy with solid financials.
Should you buy stock in TransMedics Group right now?
Before you buy stock in TransMedics Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TransMedics Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 8, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise, TransMedics Group, and Vertiv. The Motley Fool recommends Fair Isaac. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Top Stocks Long-Term Investors Should Buy in March

Key Points
Quanta Services has made strategic acquisitions to capitalize on the data center infrastructure boom.
Vertiv has experienced record growth in organic orders and has developed prefabricated infrastructure solutions to meet the demands of hyperscalers.
Eaton has seen significant growth in data center orders and is projected for double-digit earnings growth in the coming years.
The technology industry is currently investing massive amounts of capital into new data centers to support the rapid expansion of artificial intelligence and cloud-based services. Hyperscalers are spending $700 billion on capital expenditures this year to build out these data centers, creating a generational investment cycle in power generation and grid modernization.
For companies like Quanta Services (NYSE: PWR), Vertiv (NYSE: VRT), and Eaton (NYSE: ETN), this massive spending could be the beginning of a supercycle for their respective industries. These companies benefit from strong positions across infrastructure, power, and cooling solutions, with these trends providing a powerful tailwind going forward.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Quanta Services has made strategic acquisitions to capitalize on the infrastructure boom
Quanta Services provides turnkey infrastructure solutions that span the entire power delivery process, from constructing power generation facilities and high-voltage grid interconnections to the critical-path electrical systems inside the data centers. The company has positioned itself as a key partner for technology giants to help support this buildout.
Quanta has made strategic investments to strengthen its position in this growing market. In 2024, it acquired Cupertino Electric for approximately $2 billion, adding specialized low-voltage electrical engineering and modularization services tailored to the technology sector. It followed this up last year by acquiring Dynamic Systems for approximately $1.5 billion, providing it with mechanical, plumbing, and process infrastructure for large-load facilities, including data centers and industrial facilities.
The hyperscaler data center boom is a massive tailwind, as seen in its project backlog (the total value of work contracted but not yet completed). By the end of last year, Quanta's backlog surged to $44 billion, a 27.5% increase in the past year. Goldman Sachs analyst Ati Modak sees these trends driving strong earnings per share (EPS) growth of 17% to 18% compounded annually over the next five years.
Vertiv's prefab data center solutions to speed up time to market
Vertiv also provides data center infrastructure, including power management, cooling systems, integrated rack solutions, and related services such as maintenance. The robust investment from hyperscalers has led to unprecedented demand for Vertiv's products. In the fourth quarter, the company saw a staggering 252% year-over-year growth in organic orders. As a result, its total backlog more than doubled in one year, to a record $15.0 billion.
Hyperscalers are prioritizing speed to market to bring AI capacity online while managing power needs. To meet this need, Vertiv provides prefabricated infrastructure, such as Vertiv OneCore and SmartRun. These modular solutions allow hyperscalers to deploy 12.5-megawatt building blocks that can scale up to massive 2-gigawatt sites, reducing on-site construction time and complexity.
Vertiv is scaling its operational capacity to meet this robust demand, and announced it would increase its capital expenditures from a historical average of 2 to 3% of sales to 3 to 4% of sales this year to support anticipated revenue growth. Looking forward, Vertiv projects its total organic sales will grow by roughly 28% in 2026, generating approximately $13.5 billion in revenue.
Mega projects are driving strong growth for Eaton
Eaton is another supplier of power management and electrical components for data centers and industrial operators. The company is leaning into the robust demand for data centers, and last year it spent $9.5 billion to acquire Boyd Thermal, which specializes in liquid cooling systems needed to keep next-generation AI chips from overheating.
The acquisition is part of Eaton's broader "chip-to-grid" strategy, an end-to-end framework for managing extreme power and thermal demands in next-generation data centers. The company has noted a massive surge in "mega projects" (those valued at over $1 billion) and a $3 billion pipeline in North America. Eaton management notes the company has an impressive win rate of about 40% on its megaproject bids.
In the fourth quarter, Eaton's data center orders in the Electrical Americas segment surged by approximately 200% year-over-year. Data center revenue grew by 40% in the quarter, helping push the Electrical Americas segment's total backlog to an all-time record of $13.2 billion (a 31% increase).
Looking ahead, Eaton expects some margin pressure as it front-loads costs to ramp up capacity. In the longer term, analysts project Eaton's earnings per share to grow at double-digit rates annually over the next several years.
Should you buy stock in Quanta Services right now?
Before you buy stock in Quanta Services, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quanta Services wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 7, 2026.
Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Quanta Services and Vertiv. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	80.91 25.57
Price/Sales	6.22 1.43
P/B	26.02 2.58
P/FCF	44.77 19.95

Indicator	TTM Median
ROE	34.44 15.55
ROA	7.14 6.31
Net Worth	46.95 1.47
Quick Ratio	1.02 1.16
Current Ratio	1.38 1.59

Indicator	TTM Median
Net Profit Margin	7.73 7.23
Operating Margin	15.88 10.09
Gross Margin	36.46 32.49
Return on tangible equity	-46.53 26.20

Indicator	TTM Median
EPS	0.76 0.62
EPS Forecast	0.71 0.62
Revenue	2.07B 194.00M
Gross Profit	756.00M —
EBITDA	442.00M —

Vertiv Holdings, LLC

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue