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With a market cap of $12.8 billion, Solventum Corporation (SOLV) is a leading player in the medical technology and diagnostics industry. Headquartered in Saint Paul, Minnesota, the company specializes in innovative solutions for critical markets, including healthcare diagnostics, precision medicine, and advanced imaging technologies.
Shares of Solventum have outperformed the broader market over the past six months. SOLV has risen 28.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.1%.
Narrowing the focus, SOLV stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) 4.6% decline over the past six months.
Solventum's shares have outperformed the broader market and peers, driven by strong financial performance, strategic growth, and positive investor sentiment. However, following its Q3 earnings release on Nov. 7, shares declined 3.5%. The company reported a marginal sales increase to $2.08 billion, while adjusted EPS dropped 42.9% year over year to $1.64.
Despite this, Solventum raised its full-year 2024 guidance, expecting organic sales growth toward the upper end of 0% to 1%, adjusted EPS between $6.50 and $6.65, and free cash flow between $750 million and $850 million.
SOLV is expected to release its fiscal Q4 earnings results after the market closes on Thursday, Feb. 27. For fiscal 2024, which ended in December, analysts expect SOLV's EPS to decline 99.3% year-over-year to $6.58. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last three quarters while missing on one other occasion.
Among the 10 analysts covering the stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, eight “Holds,” and one “Strong Sell.”
The configuration has been almost stable over the past few months.
On Feb. 2, Ryan Zimmerman from BTIG maintained a “Hold” rating on SOLV stock, with an average price target of $75.50, implying a potential upside of 1.7% from current levels.
Currently, SOLV is trading above its mean price target of $71.28. The Street-high target of $82 suggests a potential upside of 10.5% from current levels.
