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Valued at a market cap of $12.7 billion, Solventum Corporation (SOLV) is a healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs. The Maplewood, Minnesota-based company's offerings span medical supplies, dental care, health information systems, and purification technologies.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and SOLV fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the medical instruments & supplies industry. The company’s specialty is offering practical, science-driven solutions that improve patient safety, streamline clinical workflows, and enhance overall healthcare efficiency, making it a trusted partner for hospitals and healthcare providers.
This healthcare company has dipped 14.6% from its 52-week high of $85.92, reached on Feb. 26. Shares of SOLV have gained marginally over the past three months, underperforming the S&P 500 Index’s ($SPX) 10.5% return during the same time frame.
In the longer term, SOLV has gained 4.7% over the past 52 weeks, lagging behind SPX's 16.4% uptick over the same time period. Moreover, on a YTD basis, shares of SOLV are up 11.1%, compared to SPX’s 13.2% rise.
To confirm its bullish trend, SOLV has been trading above its 200-day moving average since early May, with slight fluctuations, and has remained above its 50-day moving average since mid-September.
On Aug. 7, SOLV reported better-than-expected Q2 results, prompting its shares to surge 2% in the following trading session. The company’s net sales improved 3.8% year-over-year to $2.2 billion, surpassing consensus estimates by 1.9%, driven by broad-based growth across all business segments, with MedSurg and HIS segments leading the way. Moreover, its adjusted EPS came in at $1.69, up 8.3% from the year-ago quarter and 16.6% ahead of analyst expectations. Additionally, building on this momentum, the company raised its fiscal 2025 guidance, highlighting confidence in its strategy and execution. It now expects adjusted EPS to be between $5.80 and $5.95, and anticipates organic sales growth to be in the range of 2% to 3%.
SOLV has outpaced its rival, Becton, Dickinson and Company (BDX), which declined 20.5% over the past 52 weeks and 17.8% on a YTD basis.
Despite SOLV’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 14 analysts covering it, and the mean price target of $86.67 suggests an 18.1% premium to its current price levels.
