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Waltham, Massachusetts-based Veralto Corporation (VLTO) provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. With a market cap of $27 billion, Veralto operates through Water Quality (WQ) and Product Quality & Innovation (PQI) segments.
The company has notably underperformed the broader market over the past year. VLTO stock prices have dipped 1.2% over the past 52 weeks and gained 6.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 13.3% surge over the past year and 8.3% uptick in 2025.
Narrowing the focus, Veralto has also lagged behind the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 17.6% gains over the past year and 14.4% returns in 2025.
Veralto’s stock prices gained 1.9% in the trading session following the release of its better-than-expected Q2 results on Jul. 28. The company’s core sales for the quarter increased 4.8% year-over-year, alongside it experienced favourable currency movements and an uptick in contribution from acquisitions. Overall, VLTO’s topline for the quarter came in at $1.3 billion, up 6.4% year-over-year, surpassing the Street expectations. Further, its adjusted EPS for the quarter surged 9.4% year-over-year to $0.93, surpassing the consensus estimates by 4.5%.
For the full fiscal 2025, ending in December, analysts expect Veralto to deliver an adjusted EPS of $3.81, up 7.6% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock has a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the VLTO stock, opinions include nine “Strong Buys” and seven “Holds.”
This configuration is slightly less optimistic than a month ago, when eight analysts gave “Strong Buy” recommendations.
On Jun. 30, RBC Capital analyst Deane Dray reiterated a “Sector Perform" rating on VLTO and raised the price target from $104 to $108.
As of writing, Veralto’s mean price target of $116.40 represents a 7.3% premium to current price levels. While the street-high target of $130 suggests a notable 19.8% upside potential.
On the date of publication, Aditya Sarawgi 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.
