The Reversed Version Of The QV Trading Strategy

Vertiv is a company which ticks all the boxes. Below is a snapshot of what they do.

Vertiv is a global leader in critical digital infrastructure for applications in data centers, communication networks, and commercial and industrial environments. 

As businesses, industries, and communities become more connected, we pioneer and deliver end-to-end power and cooling technologies to help our customers stay resilient, optimized, and future-ready.

With our industry-leading innovative technologies and global services network, we are fueling the revolution of the digital world – keeping technology ecosystems running efficiently and without interruption.

Vertiv is supercharging data’s potential; accelerating the pace of technology, raising the bar for high performance compute and redefining the limits of densification.

Now for the cogito ergo sum, fact-based, analysis.

Fact 1 – They are growing fast.

Organically, fourth quarter orders were up 152% year over year and up 117% sequentially. Very strong, all regions, all markets. Trailing twelve-month organic orders growth was 81% and would be even higher if we included our recent acquisitions. Our book-to-bill ratio was 2.9 times. Our backlog stands at $15 billion, more than double last year’s. Q4 organic net sales were up 19%, primarily driven by remarkable strength in The Americas, which grew 46% organically, APAC was down 9%, and EMEA down 14%.

Q4 adjusted operating margin was 23.2%, up 170 basis points from Q4 2024. Adjusted operating profit was $668 million and was up 33% from the prior year. Our fourth quarter adjusted diluted EPS was $1.36, up 37% from Q4 2024. Adjusted free cash flow for the full year was circa $1.9 billion, with an adjusted free cash flow conversion of 115%. For 2026, we are projecting adjusted diluted EPS of $6.02 on organic sales growth of 28% with adjusted operating margin 22.5%. 

Fact 2 – They have a great story.

I am extremely pleased with how we executed in the fourth quarter and for the full year of 2025. We delivered strong results across key metrics, and we have tremendous momentum heading into 2026 and beyond. What you are seeing is the payoff from years of strategic investments and disciplined execution. Our focus on engineering innovation, capacity expansion, and deep customer partnerships is translating directly into results. Giordano and his team are doing an outstanding job executing our strategy, and I am impressed with how they are navigating both opportunities and challenges. AI-driven infrastructure build-out is accelerating, and data centers are at the center of it all. We are still in the early innings of this secular growth trend.

Vertiv Holdings Co’s position in this market keeps getting stronger. Our technology leadership and global scale, along with our service and operational capabilities, are not easily replicated. And we keep widening that gap. We have established a strong record. We commit to ambitious goals, and we deliver. Now, here is what excites me the most. Vertiv Holdings Co is not choosing between today and tomorrow. We are winning now and winning later, positioning us to create value both now and well into the future. Said more simply, we are not done yet.

Fact 3 – They have a great chart. The reversal referred to in the heading is because some of the buy signals are short-term, but all the sell signals are long-term. Historically, I have done this the other way around, but I have begun to wonder if I have been missing a good trick.

The chart is complicated, so let us look at what is happening. Buy signals are given by the green triangles, but only if the longer-term yellow and red moving averages are rising. If they are falling, you need to wait for the longest falling average, a yellow or red triangle, to signal a buy.

So now we can read the chart. There was a yellow buy signal in June 2020. There was a red line sell signal in January/ February 2022. There was a red line buy signal in January 2023. There was a red line sell signal in April 2025. A red-line buy signal immediately reversed this in May 2025. There was a follow-up green buy signal in January 2026.

Based on that signal, it would be OK to buy the shares now.

Share Recommendations

Vertiv. VRT

Strategy – Trade The Shares Using My Signals

The signals for Vertiv have been buy, sell, buy, sell, buy and finally buy more. Currently, you would be holding the shares. The fundamentals are exciting. Buy and hold would work well with this share or dollar cost averaging. If you are trading shares, it might be best to do this in a spread betting account to avoid tax problems.