This data center stock is up over 1000% in the last five years. Trader Mike Khouw sees more gains — SkimNews
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- Vertiv Holdings, the Westerville, Ohio-based electrical power equipment manufacturer behind data-center DC power, heat rejection and cooling systems, has seen its shares surge 1043% over the past five years.
- On its Q2 '26 earnings call, Vertiv raised full-year guidance across all key metrics, reported 24% net sales growth and a 410 bps expansion in adjusted operating margins.
- Vertiv CEO Giordano Albertazzi told the call that momentum is "strong, broad-based, and accelerating" and said he is "more confident in our trajectory today than I have ever been."
- Despite the upbeat outlook, Vertiv sold off post-earnings on concerns that supply-chain delays were pushing some sales into the second half; the stock has since recovered to just below its 150-day moving average.
- Vertiv is set to next report earnings on October 22, which Khouw identifies as the catalyst for his trade.
- Khouw's recommended structure is a January 240/290/340 call spread risk reversal priced close to "even": worst case the trader buys the stock at $240, roughly 14% below current levels and near the post-Q4 '25 lows; maximum gain is $50 per spread, about 20% of the $240 short put strike.
Why it matters: Vertiv's 24% Q2 net sales growth and raised full-year guidance directly support the bull case, but the post-earnings supply-chain sell-off shows real timing risk into the October 22 print. The January-expiring risk reversal lets a trader play the setup without paying net premium, capping downside at the $240 strike — about 14% below the current quote.
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