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Fortive Corporation (FTV), with a market cap of $26.7 billion, operates in the diversified industrial sector, offering advanced industrial technology and professional instrumentation solutions globally. The Everett, Washington-based company is organized into three segments: Intelligent Operating Solutions; Precision Technologies; and Advanced Healthcare Solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and FTV fits right into that category, signifying its substantial size, stability, and dominance in the scientific & technical instruments industry.
Fortive benefits from its strong market leadership and brand recognition, particularly in the industrial technology sector. Its well-known brands provide a competitive advantage in acquiring and retaining customers. Additionally, Fortive’s strategic acquisitions and realignment efforts, such as the divestiture of Invetech, reflect the company's agility in optimizing its portfolio to focus on high-growth areas, bolstering its financial and competitive position.
However, the tech instrument behemoth has fallen 11.3% from its 52-week high of $87.10, which it hit on May 23. Shares of FTV have climbed 5.4% over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK) 3.4% decline over the same time frame.
However, in the longer term, FTV shares rose 2.1% over the past year, and in 2024, the stock is up 5%. By contrast, XLK is up 16.2% on a YTD basis and has surged 32.1% over the past 52 weeks.
Despite significant fluctuations, FTV has been trading above its 50-day and 200-day moving averages since recently, reinforcing the ongoing bullish price trend.
On Sept. 5, FTV closed up more than 1% following the announcement of its plan to spin off the Precision Technologies segment, resulting in the creation of two independent, publicly traded companies.
However, on July 24, FTV stock fell 8.2% following its Q2 earnings announcement, which revealed a revenue miss despite beating EPS expectations. The decline was further exacerbated by concerns over delayed recovery in key end markets and lower-than-anticipated Q3 guidance.
Highlighting the contrast in performance, rival Garmin Ltd. (GRMN) has gained 61.4% in the past 52 weeks and soared 33.6% on a YTD basis, outperforming FTV.
Despite its underperformance compared to the broader tech sector over the past year, analysts are reasonably optimistic about FTV’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $86.47 is an 11.9% premium from current levels.
On the date of publication, Kritika Sarmah 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.
