Leon Cooperman Stock Portfolio: Top 12 Picks

3. Vertiv Holdings Co. (NYSE:VRT)

Total Number of Shares Owned: 2,100,000

Total Value of Shares Owned: $181,797,000

Number of Hedge Fund Investors: 92

The bullish outlook for Vertiv Holdings Co. (NYSE:VRT) is based on its strong financial performance and strategic position in the rapidly growing data center and AI infrastructure markets. In Q2 2024, Vertiv Holdings Co. (NYSE:VRT) reported impressive net sales of $1.95 billion, marking a 13% increase compared to the previous year and surpassing market expectations. Vertiv Holdings Co. (NYSE:VRT) also experienced a remarkable 57% growth in organic orders, highlighting the strong demand for its diverse product offerings.

Key financial metrics include an adjusted earnings per share (EPS) of $0.67, which exceeded consensus estimates, and a 52% increase in adjusted operating profit, reaching $382 million. Additionally, Vertiv Holdings Co. (NYSE:VRT)’s operating margin improved significantly, expanding by 510 basis points to 19.6%. This growth was fueled by higher sales volumes, better pricing strategies, and enhanced productivity. Vertiv Holdings Co. (NYSE:VRT) also demonstrated robust cash flow, reporting $333 million in adjusted free cash flow and maintaining strong liquidity of $1.2 billion, with no borrowings under its credit facility.

A crucial driver of Vertiv Holdings Co. (NYSE:VRT)’s growth is its focus on scaling AI deployment. Vertiv Holdings Co. (NYSE:VRT) is investing in research and development as well as expanding its capacity to meet the increasing demand for essential digital infrastructure, particularly in data centres where AI and cloud computing are driving significant growth. Vertiv Holdings Co. (NYSE:VRT) has raised its full-year revenue guidance for 2024 to between $7.59 billion and $7.74 billion, reinforcing its positive outlook as it continues to leverage operational excellence and increasing market demand.

Omega Advisors, Inc. owns 2,100,000 shares of Vertiv Holdings Co. (NYSE:VRT), valued at $181,797,000.

Baird Mid Cap Growth Equity Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q2 2024 investor letter:

“We made several adjustments to our technology sector mix. We also added Manhattan Associates and Vertiv Holdings Co (NYSE:VRT). Vertiv is a power equipment company benefitting from secular growth in data center spending and in artificial intelligence-driven thermal management solutions.”