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Valued at a market cap of $26.4 billion, Veralto Corporation (VLTO) provides essential technology solutions that support water quality, product identification, and environmental monitoring. The Waltham, Massachusetts-based company’s solutions help ensure safe water, accurate product labeling, sustainable packaging, and reliable quality control.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Veralto fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the pollution & treatment controls industry. By combining scientific expertise, innovation, and a strong commitment to sustainability, the company helps customers meet rising regulatory standards and achieve long-term operational resilience.
This water treatment company is currently trading 7.4% below its 52-week high of $115, reached on Oct. 24, 2024. Shares of VLTO have surged 9% over the past three months, outperforming the VanEck Environmental Services ETF’s (EVX) 1.6% return during the same time frame.
However, in the longer term, VLTO has fallen 3.1% over the past 52 weeks, underperforming EVX's 7.2% uptick over the same time period. Moreover, on a YTD basis, shares of Veralto are up 4.6%, compared to EVX’s 12.6% surge.
To confirm its bullish trend, VLTO has been trading above its 200-day moving average since late June, and has remained above its 50-day moving average since late April.
On Jul. 28, Veralto delivered better-than-expected Q2 results, and its shares surged 1.9% in the following trading session. The company’s total sales improved 6.4% year-over-year to $1.4 billion, with core sales rising by 4.8%. The top-line figure surpassed the consensus estimates by 2.2%. Furthermore, its adjusted EPS of $0.93 advanced by an even more impressive 9.4% from the year-ago quarter, topping analyst estimates of $0.89.
VLTO has significantly underperformed its rival, CECO Environmental Corp. (CECO), which surged 77.5% over the past 52 weeks and 67.7% on a YTD basis.
Given Veralto’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 17 analysts covering it, and the mean price target of $116.40 suggests a 9.3% premium to its current price levels.
