Jim Cramer on Vertiv: “At 53 Times Earnings, I Gotta Say No Thanks”

Vertiv Holdings Co (NYSE:VRT) was among the stocks Jim Cramer discussed while explaining how investors can navigate the current market rotation. Cramer commented on the company’s latest quarter, as he commented:

Vertiv had an amazing quarter, the best backlog of any of the data center stocks, but at 53 times earnings, I gotta say no thanks.

Stock market data. Photo by Jakub Zerdzicki on Pexels

Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and manages power and cooling systems for data centers and digital networks. The company also provides services to keep these systems running smoothly and efficiently. A caller asked about the stock during the lightning round of the May 12 episode, and Cramer said:

Okay, here’s what I want you to do with Vertiv. I think they’ve got great orders. I think if you want to put a position on, you buy half and then you wait for a decline. If it doesn’t decline, that’s too bad because the stock is just, it is just a tiger right now, and I don’t want you to get burned.

While we acknowledge the risk and potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1