10 Best Upside Stocks To Buy Right Now

5. Vertiv Holdings Co. (NYSE:VRT)

Upside Potential as of March 10: 64.63%

Number of Hedge Fund Holders: 92

Vertiv Holdings Co. (NYSE:VRT) is a leader in critical digital infrastructure technologies. It provides essential power, thermal management, and IT solutions for data centers, communication networks, and industrial environments. It supports modern digital applications, from e-commerce and cloud computing to telecommunications and beyond.

The company is capitalizing on the need for power management in AI data centers. As a market leader, its expertise in AC and DC power conversion directly addresses the power distribution demands of AI. The company is actively investing in R&D and acquiring companies like BSE, which specifically strengthens its cooling capabilities for the high-performance requirements of AI deployments. The company’s EPS surged 77% year-over-year in Q4 2024, reaching $0.99. Looking ahead, it projects EPS between $3.5 and $3.6 for 2025.

Bank of America’s Andrew Obin reaffirmed a Buy rating on Vertiv Holdings Co. (NYSE:VRT) on January 21, citing its strong position in AI and data centers. He forecasts a 25% annual EPS growth from 2024 to 2027, despite general market concerns, believing that the company’s potential is undervalued due to both AI-related and traditional revenue growth, which is fueled by increased data center spending.

Baron Small Cap Fund is highly positive on Vertiv Holdings Co. (NYSE:VRT) because of its leading position in data center infrastructure and strong growth potential driven by AI. Here’s what it said in its Q4 2024 investor letter:

“Vertiv Holdings Co (NYSE:VRT), a critical digital infrastructure solutions provider for data centers, continued to perform well. With a leading market share in power and cooling applications for data centers, Vertiv is seen as a prime beneficiary of the AI-related data center buildout. At its November Analyst Day, Vertiv raised organic sales guidance to 12% to 14% CAGR for the next five years and gave guidance of 16% to 18% organic revenue growth for 2025. Vertiv also increased its target adjusted operating profit margin from 20% to 25%. While impressive on their own, these forecasts can prove conservative we think. With the stock up 141% in 2024, we have been trimming the stock into strength to manage position size but hold a large stake as we believe in its growth and that the stock is reasonably valued even after great appreciation the last two years.”