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Waltham, Massachusetts-based Revvity, Inc. (RVTY) is a global provider of health sciences technologies and services. With a market cap of $15.4 billion, the company offers instruments, reagents, software, and solutions for genetic testing, disease detection, and drug discovery, serving pharmaceutical, biotech, and healthcare organizations.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Revvity fits this criterion perfectly, exceeding the mark. Revvity stands out in the market for its comprehensive integration of advanced informatics and detection technologies that streamline genomic workflows and enhance the early detection of genetic disorders.
Despite a 2.5% dip from its 52-week high of $128.15 achieved on Jul. 31, the scientific instruments maker has rebounded with a 16.9% increase in its share price over the past three months and has outperformed the broader First Trust Indxx Global Medical Devices ETF’s (MDEV) return of 9.5% during the same period.
Longer term, Revvity’s shares have soared 14.3% on a YTD basis, outpacing MDEV's 8.1% gain. However, RVTY's shares have increased 14.1% over the past 52 weeks, lagging behind MDEV's 20.4% gains over the same time frame.
Yet, RVTY has been trading above its 50-day and 200-day moving averages since mid-May despite some fluctuations recently, indicating a bullish price trend.
Revvity has struggled over the past year with underperforming acquisitions, ineffective resource allocation, and a failure to capitalize on post-pandemic opportunities, resulting in stagnant growth and declining financial performance. However, the stock rose over 9% on Jul. 29 following the company's announcement of an increased annual profit forecast, projecting adjusted earnings of $4.70 per share to $4.80 per share. This surge was driven by stronger-than-expected demand for its diagnostic products, as evidenced by a Q2 adjusted profit of $1.22 per share despite missing revenue estimates.
Nevertheless, in comparison, its rival, Thermo Fisher Scientific Inc. (TMO), has outperformed RVTY, with shares of TMO surging 21.7% over the past 52 weeks and 15.3% on a YTD basis.
Despite RVTY’s underperformance over the past year, analysts are moderately optimistic, with a consensus rating of "Moderate Buy" from 17 analysts. It is currently trading below the mean price target of $132.71.
On the date of publication, Sohini Mondal 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.
