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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.
