Vertiv Holdings Co (NYSE: VRT)
With a market cap of $117B, Vertiv Holdings certainly has the headroom to grow 2.5X over the next few years thanks to a few factors.
There is currently an extremely high demand for AI data centre infrastructure which continues to fuel their forecasted 29% growth in net sales and $15B order backlog – a figure that has more than doubled year-over-year. Operating margins are up as well and they have beat all 4 of their last earnings calls. Another good sign is that AI spending is forecasted to reach $3.5T by the end of 2027 which should keep this propped up at least until then.
Given +35% EPS growth forecasts over the next year, if the spending continues and valuations stay high that will most likely mean a +35% prop up in share price over that time. Extrapolated that would mean this stock could turn $1000 into $2500 in about 4 years.
Our current rating for Vertiv is a Strong Buy with a +15% one year forecast, but with such heavy AI spending we do acknowledge that this is quite a conservative estimate. The average analyst rating is a Buy with a +13% one year upside.
Nu Holdings Ltd. (NYSE: NU)
Nu Holdings has beat 3 of their last 4 earnings calls and continues to prove its value at an incredibly low 18 price to earnings multiple.
What makes this valuation so impressive is the earnings growth that comes along with it – with forward EPS growth forecasts of over 32% it gives this stock a very attractive PEG ratio at just 0.6.
They are continuing to add customers at impressive rates and are definitely a contender to 2.5X their share price within the next few years if they continue to add users at this pace. Our rating for NU stock is a Strong Buy with a 40% one year upside, and analysts are currently rating it a Buy with a +46% projection.
Topics: VRT price projection, NU stock analysis and price estimate
