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Valued at a market cap of $21.3 billion, Veralto Corporation (VLTO) is a Waltham, Massachusetts-based company that provides water analytics, water treatment, marking and coding, and packaging and color solutions.
This industrial company has considerably underperformed the broader market over the past 52 weeks. Shares of VLTO have declined 14% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.4%. Moreover, on a YTD basis, the stock is down 13%, compared to SPX’s 8.8% rise.
Zooming in further, VLTO has also notably lagged the State Street Industrial Select Sector SPDR ETF’s (XLI) 21.6% rise over the past 52 weeks and 10.7% uptick on a YTD basis.
On Apr. 28, VLTO delivered better-than-expected Q1 results, and its shares surged 4.5% in the following trading session. The company’s revenue increased 6.7% year-over-year to $1.4 billion, topping analyst estimates by 1.4%. Moreover, its adjusted EPS of $1.07 grew 12.6% from the year-ago quarter, exceeding consensus expectations of $1.02.
For the current fiscal year, ending in December, analysts expect VLTO’s EPS to grow 8.2% year over year to $4.23. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on 10 “Strong Buy” and eight “Hold” ratings.
The configuration is slightly more bullish than two months ago, with nine analysts suggesting a “Strong Buy” rating.
On May 1, UBS maintained a “Neutral” rating on VLTO and raised its price target to $101, indicating a 16.4% potential upside from the current levels.
The mean price target of $106.75 suggests a 23% premium to its current price levels, while its Street-high price target of $115 implies a 32.5% potential upside.
