For Immediate Release
Chicago, IL – January 9, 2025 – Today, Zacks Investment Ideas feature highlights Comfort Systems USA FIX, Vertiv VRT and Arista Networks ANET.
Tap into Data Center Exposure with These 3 Stocks: VRT, ANET, FIX
Thanks to the artificial intelligence (AI) frenzy, data centers have become a focus of attention, with many realizing just how crucial they are in facilitating data globally.
While many companies are positioned to benefit from pure-play AI offerings, those who own, service, and have exposure to data centers offer a unique investment angle to join the theme.
Let’s take a closer look at a few stocks – Comfort Systems USA, Vertiv and Arista Networks – that investors can buy to ride the data center wave.
Vertiv Keeps Data Centers Cool
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.
The outlook for its current fiscal year has remained bullish thanks to strong quarterly results, with the $2.69 per share estimate up a bullish 20% over the last year.
Scorching-hot demand has aided the above-mentioned quarterly results, with Vertiv exceeding the Zacks Consensus EPS estimate by an average of 10% across its last four releases. The company’s top line has expanded nicely amid the frenzy, with VRT posting double-digit percentage year-over-year revenue growth in seven consecutive releases.
Arista Networks Shares Soar
Arista Networks is an industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments. Analysts have taken a bullish stance across the board concerning the EPS outlook, helping position the stock nicely as a current Zacks Rank #2 (Buy).
Like VRT, the growing AI landscape has benefited the company’s top line in a big way, with the company posting sequential revenue growth in each of its last ten periods.
FIX Sports Bullish EPS Outlook
Comfort Systems USA provides comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services. The company provides chillers, cooling towers, and other critical components found within data centers.
The earnings estimate revisions trend for its current fiscal year has been considerably bullish, up 46% over the last year and suggesting 60% year-over-year growth
Bottom Line
The AI frenzy continues to dominate market headlines, with companies continuing to speak on the technology in a snowballing fashion.
And Vertiv, Arista Networks and Comfort Systems USA are all expected to see the tailwinds due to their data center exposure.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Free: See Our Top Stock And 4 Runners UpComfort Systems USA, Inc. (FIX) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
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