Key Takeaways
- Vertiv fell 11% in the past week after Democrats won Congress, reviving fears of a data center construction slowdown in Texas.
- The drop came less than two weeks after Vertiv beat estimates and raised its guidance.
- Constellation Energy’s raised guidance on Monday eased the moratorium fears and gave Vertiv back part of the drop.
- Below its five-year average forward P/E, Vertiv looks like a buy, with management’s Nov. 10 talk at Baird the first test.
Vertiv (VRT) has lost 11% in the past week. Investors dumped data center stocks after Democrats won Congress in the Nov. 3 midterms.
Constellation Energy (CEG) took some of that fear out on Monday with a beat and a raised 2026 outlook, and Vertiv jumped 10%.
Texas is the worry, and Vertiv can follow the projects
Texas Governor-elect Gina Hinojosa campaigned on a moratorium on data center construction. Then on CNBC, Halftime Report regular Steve Weiss warned that spending plans would suffer, “particularly in Texas where 30% of all projects are.”
But a data center blocked in Texas can still go up in another state, and it’ll need Vertiv’s power and cooling gear wherever it lands.
Constellation’s report on Monday also showed the power demand is still there. It raised the midpoint of its 2026 guidance for the second time this year. CEO Joe Dominguez also said its new megawatts are “coming online with no costs being borne by existing customers.” That speaks directly to the utility bill complaints behind Hinojosa’s campaign.
A blowout quarter, less than two weeks old
On Oct. 28, Vertiv reported $4.31 billion of third-quarter sales, up 61%. That was well ahead of the $3.76 billion analysts expected. It also raised its 2026 sales guidance midpoint to $14.65 billion after organic orders more than doubled. Analysts expect normalized EPS to roughly triple from 2025 to 2028:
Those estimates should hold unless the big cloud spenders cut their total budgets.
TIKR tracks 30 analysts on Vertiv. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Vertiv, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Vertiv’s Analyst Ratings
A cheaper Vertiv, with a test right away
The selloff took Vertiv’s forward P/E to 20x at Friday’s close. That’s under its 27x five-year average and less than half of May’s 55x peak:
Even after Monday’s bounce, it’s about 22x, and the $338 consensus target sits 68% above Monday’s close:
To me, the market priced Vertiv as if its business were stuck in Texas, and the drop looks like a chance to buy. Management speaks at Baird’s Global Industrial Conference on Nov. 10, its first public comments since the vote. After that, the Feb. 10 report brings its first 2027 guidance. Of course, Hinojosa hasn’t taken office yet, and how hard she pushes will shape where the next projects go.
So what is Vertiv stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
