Top 5 Stocks to Invest in Based on Traci Lerner’s Chescapmanager LLC’s Portfolio

3. Vertiv Holding Co (NYSE: VRT)

Chescapmanager LLC Stake Value: $31.8
Percentage of Chescapmanager LLC’ 13F Portfolio: 3.84%
No. of Hedge Fund Holders: 36

Vertiv Holdings Co (NYSE: VRT) is an Ohio based company that offers key digital infrastructure technology and life cycle services for data centers, commercial and industrial settings and communication networks. The company is third on our list of top stocks to buy according to Traci Lerner’s Chescapmanager LLC.

The company has a market cap of $8.4 billion. In the second quarter of 2021, Vertiv Holdings Co (NYSE: VRT) reported an EPS of $0.31, beating estimates by $0.07. The company’s revenue in the second quarter came in at $1.26 billion, an increase of 24.8% year over year, and beat revenue estimates by $40 million.

On September 13, investment advisory JPMorgan lowered Vertiv Holdings Co (NYSE: VRT) stock to a Neutral from Overweight rating with an unmoved price target of $25, mentioning estimate cuts and relative valuation for the downgrade.

Our data shows that Brahman Capital is one of the biggest stakeholders of Vertiv Holding Co (NYSE: VRT), with 5.8 million shares worth $158.8 million.

At the end of the second quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $904.3 million in Vertiv Holdings Co (NYSE: VRT), down from 39 the preceding quarter worth $997.2 million.

Here is what Baron Funds has to say about Vertiv Holdings Co in its Q2 2021 investor letter:

“Vertiv Holdings, LLC is a leading manufacturer of critical digital infrastructure technology for data centers, communication networks, and commercial and industrial environments. Vertiv reported organic sales growth of 19.5% in the last quarter, well above expectations. Orders were up 21% and backlog 31%, which are good indicators of long-term demand for its products. Margins also were much higher than projected leading to a large earnings beat, and we think there is opportunity for continued margin expansion. The company’s balance sheet is much improved, and it has an active acquisitions funnel. We believe that the company will continue to grow nicely and believe its stock still offers great promise, as it is inexpensive on an absolute basis and low relative to its peers.”