Billionaire Lee Cooperman Says The Market Is Expensive But These 10 Stocks Are Cheap

3. Vertiv Holdings Co.(NYSE:VRT)

Number of Hedge Fund Investors: 85

Vertiv Holdings Co.(NYSE:VRT) operates in the infrastructure sector, offering solutions like uninterruptible power supplies (UPS), cooling systems, and IT infrastructure management. Despite uncertainties surrounding AI monetization, Vertiv Holdings Co.(NYSE:VRT)’s management reports a growing multi-year backlog and expanding profit margins.

Vertiv Holdings Co.(NYSE:VRT) has also made significant progress in monetizing its existing and future data center installations through enhanced service management and predictive maintenance. These initiatives are reflected in a healthier balance sheet, highlighting Vertiv Holdings Co.(NYSE:VRT)’s capability to finance future growth opportunities, particularly as the next cloud super cycle approaches. This strong financial position and strategic focus on expanding its service base support a bullish outlook for Vertiv Holdings Co.(NYSE:VRT).

Despite uncertainties about AI monetization, Vertiv Holdings (NYSE:VRT) shows strong potential due to its growing backlog and improving profit margins. Vertiv Holdings (NYSE:VRT) is enhancing its financial stability with better service management and predictive maintenance of data center assets. This positions Vertiv well for future growth, especially with the upcoming cloud super cycle.

Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q2 2024 investor letter:

“Vertiv Holdings Co (NYSE:VRT) a leading provider of critical digital infrastructure for data centers, contributed during the quarter. As an industry leader in data center cooling and power management, Vertiv is poised to benefit from AI-driven growth in data center spend. The NVIDIA partner network, strong industry relationships, and broad product portfolio that Vertiv maintains enables its participation in the creation of the technology roadmap for the future of the data center. In addition, Vertiv is investing in its capacity to serve this growing end market more effectively. The company also has an extensive global service network to aid customers as they grow. We believe the company has durable competitive advantages and a flexible balance sheet to benefit from the expected significant capital investment in data centers for years to come. Vertiv reported very strong results for the March quarter, with orders up 60%, which highlighted the strong demand it is seeing for its products. We sold some of our position into strength after the runup from the positive report, but still hold a major position in the Fund as we see considerable upside in the shares over time.”