keep holding or sell VRT?
5/19/2024 11:58am
**Vertiv (VRT) is not a suitable candidate for holding at this time.** Here's why:
1. **Financial Health Concerns**: Vertiv's negative net profit margin and ROE indicate that the company is not generating profits efficiently. A negative net profit margin means that the company is losing more money than it makes, which is a red flag for financial stability[^2]. Additionally, the negative ROE suggests that the company is not generating enough profits to cover its costs, which is unsustainable in the long term.
2. **Lack of Positive Earnings**: The company's basic EPS of -$0.02 further illustrates the lack of profitability[^2]. This is a clear indication that the company is not generating positive earnings, which is a fundamental requirement for a stock to be considered a good investment.
3. **High Valuation**: With a trailing P/E ratio of 90.3 at the time of writing, Vertiv's stock is highly valued, which may not be justified by its current financial performance[^1]. Such a high valuation suggests that the stock is overpriced relative to its earnings, making it less attractive for long-term investors.
Given these factors, it would be prudent to consider selling your VRT shares rather than holding them. This decision is based on the company's current financial health, lack of positive earnings, and high valuation, which do not align with the criteria for a good investment.