/Waters%20Corp_%20phone%20logo%20and%20site-by%20T_Schneider%20via%20Shutterstock.jpg)
Milford, Massachusetts-based Waters Corporation (WAT) crafts cutting-edge liquid chromatography and mass spectrometry (MS) systems for clinical, pharmaceutical, and environmental sectors. With a market cap of $20.2 billion, the company powers labs across Asia, the Americas, and Europe.
Shares of the lab equipment and software maker have lagged behind the broader market over the past year. Over the past 52 weeks, WAT gained 21.1% compared to the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, WAT is up 3.6% versus SPX’s 17.2% gains on a YTD basis.
However, zooming in further, WAT has outperformed the S&P 500 Healthcare Sector SPDR’s (XLV) 16.5% returns over the past 52 weeks. Despite this, the stock has lagged behind XLV’s 14.2% YTD gains.
Shares of Waters Corporation surged 2.6% on Jul. 31 after the release of its Q2 earnings. Despite a 4.3% annual decline in net sales to $708.5 million, the company exceeded management guidance and Wall Street’s expectations. The outperformance was driven by a better-than-expected performance in China and a higher-than-expected M&A contribution to overall sales from Wyatt. Additionally, the outlook for a gradual market improvement in the second half of the year further boosted investor confidence.
For the current fiscal year, ending in December, analysts anticipate Waters Corporation’s EPS to decline 1.3% year over year to $11.60. However, the company’s earnings surprise history is robust. It surpassed the consensus estimates in each of the past four quarters. Its EPS for the last reported quarter surpassed the consensus estimates by 3.1% to $2.63.
Among the 15 analysts covering the WAT stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, 13 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than a month ago when no analyst recommended a “Strong Buy.”
On Aug. 28, Wells Fargo analyst Brandon Couillard initiated an “Overweight” rating with a price target of $380.
WAT is currently trading above its mean price target of $332.93. The Street-high price target of $375 implies a modest potential upside of almost 10%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
