We recently published a list of 7 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Vertiv Holdings Co (NYSE:VRT) stands against other stocks on Jim Cramer’s radar.
Jim Cramer, host of Mad Money, recently shared his thoughts on the prevailing negative sentiment surrounding data centers and discussed the broader economic implications of Trump’s tariffs, especially their effect on consumer confidence.
“The rebellion against the data center continues. That’s the dominant theme of this market. Don’t anyone tell you otherwise… How do I know this? Aren’t there more cross-currents than that? Oh, of course, there are. I mean there’s the endless tariff Trump beat, one that’s driven stocks lower en masse incredibly.”
READ ALSO: Jim Cramer Commented on 12 Stocks Linked to Data Centers and Jim Cramer on 10 Stocks With The Biggest Declines Last Week
He noted that aside from the Dow, no major index, including the S&P 500, the Nasdaq, the transport sector, or even the small-cap Russell 2000, has managed to gain since Trump’s inauguration. In fact, some of these indices, like the Russell, have been hit particularly hard. Cramer commented on the almost daily barrage of new tariffs, saying, “It feels like we get a new tariff for every day, doesn’t it?”
“Perhaps there’s a sense that the Trump bump is over. We know that when he was elected, the business world cheered with both their voices and their dollars. It was spontaneous.”
The optimism, he noted, led to a surge in stock prices across various sectors. However, after Trump entered the second month of his presidency, some business leaders started to question the turmoil coming out of Washington. Cramer pointed out that this growing uncertainty is contributing to a more cautious outlook in the business world.
He highlighted that the much-anticipated tax cuts have not materialized yet, with instead, a constant stream of confusing and unpredictable tariff-related talk coming from the administration. Cramer went on to explain that the uncertain environment is making people feel uneasy. He referenced an indicator from the University of Michigan’s consumer sentiment report, which was noticeably more negative than anticipated.
“One of the indicators we got this week, the University of Michigan consumer sentiment reading, was appreciably more negative than we expected. That’s a read of what I’m talking about. We know this economy runs on the consumer. Any sign of a real slowdown based on consumer confidence could be a shocker.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 25. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 92
Vertiv Holdings Co (NYSE:VRT) was mentioned during the episode and here’s what Cramer had to say:
“We’re all worried about Nvidia. If tomorrow Nvidia pulls the rug and says things aren’t that good then Vertiv goes down 10% and that’s when we buy it. Let’s wait till they give us the all-clear or not. Either way, it’s a clearing event. That’s… our plan.”
Vertiv (NYSE:VRT) specializes in providing and supporting critical digital infrastructure solutions and lifecycle services for data centers, communication networks, as well as various commercial and industrial sectors.
Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q4 2024 investor letter:
“Vertiv Holdings Co (NYSE:VRT), a critical digital infrastructure solutions provider for data centers, continued to perform well. With a leading market share in power and cooling applications for data centers, Vertiv is seen as a prime beneficiary of the AI-related data center buildout. At its November Analyst Day, Vertiv raised organic sales guidance to 12% to 14% CAGR for the next five years and gave guidance of 16% to 18% organic revenue growth for 2025. Vertiv also increased its target adjusted operating profit margin from 20% to 25%. While impressive on their own, these forecasts can prove conservative we think. With the stock up 141% in 2024, we have been trimming the stock into strength to manage position size but hold a large stake as we believe in its growth and that the stock is reasonably valued even after great appreciation the last two years.”
Overall, VRT ranks 2nd on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of VRT as an investment, our conviction lies in the belief that 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.