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With a market cap of $24.2 billion, Veralto Corporation (VLTO) is a global provider of technology solutions focused on water and product quality. It operates through two main segments: Water Quality (WQ) and Product Quality & Innovation (PQI), offering a wide range of instrumentation, treatment technologies, marking and coding systems, and digital asset management tools.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Veralto fits this criterion perfectly. Veralto serves industries including municipal utilities, food and beverage, pharmaceuticals, and industrials.
Shares of the Waltham, Massachusetts-based company have decreased 15.3% from its 52-week high of $115. Veralto’s shares have fallen 1% over the past three months, underperforming the Industrial Select Sector SPDR Fund’s (XLI) nearly 8% gain over the same time frame.
In the longer term, VLTO stock is down 4.3% on a YTD basis, lagging behind XLI’s 8.9% increase. In addition, shares of the water and product quality services provider have declined 3.1% over the past 52 weeks, compared to XLI’s 17.2% return over the same time frame.
The stock has been trading below its 200-day moving average since February. But, it climbed above the 50-day average since May.
Shares of Veralto rose over 3% following its Q1 2025 results on Apr. 29, with adjusted EPS of $0.95 surpassing the consensus estimate and rising 13.1% year-over-year. Revenue grew 6.9% year-over-year to $1.3 billion, exceeding expectations, driven by solid 8.3% growth in the Product Quality & Innovation segment. Additionally, a robust free cash flow of $142 million and a significant increase in cash reserves to $1.2 billion boosted investor confidence despite cautious Q2 guidance.
However, VLTO stock has lagged behind its rival, Federal Signal Corporation (FSS). FSS stock has returned 10.1% on a YTD basis and 19.6% over the past 52 weeks.
Despite the stock’s underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 15 analysts' coverage, and as of writing, VLTO is trading below the mean price target of $109.14.
