Milford, Massachusetts-based Waters Corporation (WAT) provides analytical workflow solutions. Valued at a market cap of $19.6 billion, the company specializes in analytical laboratory technologies, particularly liquid chromatography (LC), mass spectrometry (MS), and thermal analysis systems used for testing and measuring chemical, biological, and pharmaceutical substances.
This healthcare company has lagged the broader market over the past 52 weeks. Shares of WAT have declined 13.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.7%. Moreover, on a YTD basis, the stock is down 13%, compared to SPX’s marginal rise.
Narrowing the focus, WAT has also underperformed the State Street Health Care Select Sector SPDR ETF (XLV), which gained 6.1% over the past 52 weeks and increased marginally on a YTD basis.
On Feb. 9, shares of WAT plunged 13.9% after its Q4 earnings release, despite posting better-than-expected results. Due to robust growth in pharmaceutical and industrial markets, the company’s total revenue increased 6.8% year-over-year to $932.4 million, surpassing consensus estimates by a slight margin. Moreover, its adjusted EPS grew 10.5% from the year-ago quarter to $4.53, topping analyst expectations of $4.50.
For fiscal 2026, ending in December, analysts expect WAT’s EPS to grow 9.7% year over year to $14.40. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 10 “Strong Buy” and 10 "Hold” ratings.
The configuration is more bullish than a month ago, with eight analysts suggesting a “Strong Buy” rating.
On Feb. 11, Wells Fargo & Company (WFC) analyst Brandon Couillard maintained a “Hold" rating on WAT and set a price target of $355, indicating a 6.3% potential upside from the current levels.
The mean price target of $404.90 suggests a 21.2% potential upside from the current levels, while its Street-high price target of $480 suggests a 43.7% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
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