Milford, Massachusetts-based Waters Corporation (WAT) provides analytical workflow solutions. With a market cap of $22.2 billion, the company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Waters perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics & research industry. The leading player in liquid chromatography and mass spectrometry's focus on innovation through substantial R&D investment drives new product development. With a diverse customer base spanning biopharmaceutical, industrial, and academic/government sectors, WAT maintains a stable revenue stream and capitalizes on growth opportunities across multiple industries.
Despite its notable strength, WAT slipped 5.1% from its 52-week high of $397.02, achieved on Dec. 11. Over the past three months, WAT stock has gained 5.9%, outperforming the Dow Jones Industrials Average’s ($DOWI)2.7% gains during the same time frame.
In the longer term, shares of WAT rose 29.8% over the past six months, outperforming DOWI’s 10.7% gains over the past six months. However, the stock climbed 13.5% over the past 52 weeks, underperforming DOWI’s 15.4% returns over the last year.
However, WAT has been trading above its 50-day and 200-day moving averages since late July, experiencing some fluctuations, indicating a bullish trend.
On Nov. 1, WAT shares closed up more than 19% after reporting its Q3 results. Its adjusted EPS of $2.93 topped Wall Street expectations of $2.68. The company’s revenue was $740.3 million, topping Wall Street forecasts of $714.3 million. For Q4, WAT expects its adjusted EPS to range from $3.90 to $4.10. The company expects full-year adjusted EPS to be between $11.67 and $11.87.
WAT’s rival, Agilent Technologies, Inc. (A) lagged behind the stock with a 2.1% uptick over the past six months and 2.9% losses over the past 52 weeks.
Wall Street analysts are cautious on WAT’s prospects. The stock has a consensus “Hold” rating from the 18 analysts covering it, and the mean price target of $378.94 suggests a potential marginal upside from current price levels.
On the date of publication, Neha Panjwani 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. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
