Vertiv Holdings Co (NYSE:VRT) Shareholders Booked A 97% Gain In The Last Year

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If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Vertiv Holdings Co (NYSE:VRT) share price is up 97% in the last year, clearly besting the market return of around 37% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Vertiv Holdings Co for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Vertiv Holdings Co

Given that Vertiv Holdings Co didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last twelve months, Vertiv Holdings Co's revenue grew by 7.0%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 97% in that time. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

If you are thinking of buying or selling Vertiv Holdings Co stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Vertiv Holdings Co boasts a total shareholder return of 97% for the last year (that includes the dividends) . The more recent returns haven't been as impressive as the longer term returns, coming in at just 19%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Vertiv Holdings Co that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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