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Valued at a market cap of $25.4 billion, Fortive Corporation (FTV) is a diversified industrial growth company that designs, develops, manufactures, and services professional and engineered products and software. The Everett, Washington-based company serves various industries, including healthcare, industrial automation, and transportation.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Fortive fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the scientific & technical instruments industry. The company’s strengths lie in its diversified portfolio, strong brand recognition, and commitment to technological innovation. Its ability to leverage advanced analytics, software-driven solutions, and automation gives it a competitive edge in optimizing industrial and healthcare operations.
This industrial conglomerate is currently trading 14.3% below its 52-week high of $87.10, reached on Mar. 22, 2024. Shares of FTV have gained marginally over the past three months, outpacing the broader S&P 500 Index’s ($SPX) 4.5% decline during the same time frame.
Moreover, on a YTD basis, shares of FTV are marginally down, outperforming SPX’s 3.7% downtick. However, in the longer term, FTV has fallen 13.1% over the past 52 weeks, considerably lagging behind SPX’s 8.4% rise over the same time frame.
To confirm its bearish trend, Fortive has been trading below its 200-day and 50-day moving averages since early March.
Shares of FTV surged 1.8% following its mixed Q4 earnings release on Feb. 7. Its adjusted earnings improved 19.4% year-over-year to $1.17 per share and topped Wall Street expectations of $1.12. The positive market reaction was further fueled by steady demand for its safety and productivity solutions, as well as increased contributions from FBS-driven product innovations. However, despite the revenue growing 2.3% year-over-year to $1.6 billion, FTV slightly missed the consensus estimates.
Looking ahead, management remains optimistic about Fortive's growth prospects in 2025, expecting improved core sales growth and sustained strong operating performance. For fiscal 2025, the company projects revenue between $6.2 billion and $6.4 billion, along with adjusted EPS in the range of $4 to $4.12.
Fortive has outpaced its rival, Cognex Corporation (CGNX), which declined 24.3% over the past 52 weeks and 13.1% on a YTD basis.
Given FTV’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $88.69 suggests a modest 18.8% premium to its current levels.
