Vertiv Earnings Expected to Grow 40%
Vertiv, a current Zacks Rank #2 (Buy), provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services. Shares have been remarkably strong year-to-date, with performance boosted by better-than-expected quarterly results.The company’s earnings outlook has moved higher across all timeframes, with VRT expected to post nearly 40% year-over-year earnings growth in its current year.
Image Source: Zacks Investment ResearchVertiv has continued to capitalize on the AI frenzy, exiting its latest quarter with its highest backlog in company history totaling $6.3 billion. Shares currently yield a modest 0.1% annually, below the average of the Zacks Computer and Technology sector average.The company provided rosy guidance for its current fiscal year, upping its net sales guidance into a band of $7.450 – $7.690 million, with the midpoint reflecting a +$30 million upgrade.
Image Source: Zacks Investment Research
Digital Realty Trust Stock Up 44%
Digital Realty Trust is engaged in the ownership, acquisition, repositioning, and management of technology-related real estate. Specifically, the company offers data center, colocation, and interconnection solutions for domestic and international tenants through its portfolio of data centers.The market has fully recognized DLR’s favorable position, with shares up 44% over the last year compared to the S&P 500’s 25% gain. DLR’s footprint remains strong, with over 300 data centers across more than 25 countries.
Image Source: Zacks Investment ResearchIt’s worth noting that Digital Realty has an extensive list of notable customers, including Oracle, Nvidia, and IBM. Shares presently yield a solid 3.3% annually, well above the respective Zacks Finance sector average of 2.2%.Dividend growth is also apparent, as DLR carries a 3% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
The AI boom is undoubtedly here, expected to remain at the forefront of market commentary for some time. The technology has investors and companies ecstatic, with views of higher productivity and more efficient operations overall helping drive these stocks higher.Still, the list of stocks goes beyond Nvidia, including companies such as Vertiv and Digital Realty Trust, who have significant exposure to the data center side.More By This Author:3 Tech Stocks To Buy For Income These 3 Companies Boast Bright Outlooks4 Factors That Drive Share Outperformance
