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Veralto Corporation (VLTO), headquartered in Waltham, Massachusetts, offers water analytics, water treatment, marking and coding, and packaging and color services. Valued at $24.2 billion by market cap, the company provides product quality control systems and water purification equipment through brands like Hach, Trojan Technologies, ChemTreat, Videojet, Linx, and more.
Shares of this essential water and product quality solutions leader have underperformed the broader market over the past year. VLTO has gained 13.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. In 2025, VLTO stock is down 4.1%, compared to SPX’s 4% rise on a YTD basis.
Narrowing the focus, VLTO’s underperformance is also apparent compared to VanEck Environmental Services ETF (EVX). The exchange-traded fund has gained about 14.7% over the past year. Moreover, the ETF’s 5.2% gains on a YTD basis outshine the stock’s losses over the same time frame.
VLTO's underperformance is driven by weak and inconsistent demand, high long-term debt, and geopolitical risks which have contributed to a decline in sales within China.
On Feb. 4, VLTO reported its Q4 results, and its shares closed down more than 5% in the following trading session. Its adjusted EPS of $0.95 surpassed Wall Street expectations of $0.88. The company’s revenue was $1.4 billion, topping Wall Street forecasts of $1.3 billion. For fiscal 2025, VLTO expects its full-year adjusted EPS to be between $3.60 and $3.70.
For fiscal 2025, ending in December, analysts expect VLTO’s EPS to grow 3.4% to $3.66 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering VLTO stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, and seven “Holds.”
This configuration is more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Feb. 6, BMO Capital kept an “Outperform” rating on VLTO and lowered the price target to $118, implying a potential upside of 20.8% from current levels.
The mean price target of $112.31 represents a 14.9% premium to VLTO’s current price levels. The Street-high price target of $125 suggests an upside potential of 27.9%.
