This water purification stock is set to have a bullish breakout, according to the charts
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Yahoo
2 days ago
- Yahoo
Veralto Benefits From TraceGains Buyout Amid High Competition
Veralto VLTO reported impressive second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. VLTO's adjusted earnings of 93 cents per share surpassed the consensus mark by 4.5% and increased 9.4% year over year. Total revenues of $1.37 billion beat the consensus estimate by a 2.1% margin and rose 6.4% from the year-ago quarter. How Is Veralto Faring? VLTO's leadership in the Water Quality segment positions it to capitalize on robust growth opportunities in the United States. This growth is driven by the industrial and municipal verticals. In the industrial vertical, the CHIPS Act of 2022 promotes semiconductor manufacturing grants, research investments and tax credits. In the municipal vertical, increased U.S. government funding to address the country's water infrastructure problems offers a strong growth catalyst. This support is anticipated to boost investments in upgrading and modernizing water systems, driving VLTO services demand. TraceGains buyout improves the Product Quality and Innovation ('PQI') segment by adding advanced digital workflow solutions, mainly for the food and beverage industry. The acquired company's supply-chain traceability and compliance expertise boost time-to-market for consumer brands. VLTO displays a robust liquidity position. At the end of the second quarter, the company reported a current ratio of 2.32, substantially higher than the industry average of 1.04. A current ratio above 1 signifies that VLTO possesses sufficient assets to meet its short-term liabilities, reflecting financial stability. Despite being a newer entrant to the stock market, VLTO's commitment to shareholder returns makes it an appealing investment option. Since its NYSE listing in late 2023, the company has paid out a quarterly dividend of 9 cents, demonstrating financial discipline. The recent 22% dividend boost to 11 cents per share further underscores VLTO's confidence in its financial strength and growth prospects. Veralto stands highly appealing to income-seeking investors. However, being a relatively new entrant to the stock market, its share price has witnessed some volatility as the company works to establish a stable market presence. Unpredictability of this sort can be unsettling for risk-averse investors, who generally prefer stocks with a longer trading history and more consistent performance trends. Veralto faces competitive pressure from both established companies and new entrants in the PQI and digital workflow solution markets. These competitors may provide similar or better technologies at lower prices, which can limit VLTO's market share and growth opportunities. As the industry becomes more crowded, the company may find it hard to stand out, possibly leading to lower customer loyalty or price cuts, ultimately impacting profitability and investor confidence. Other Stocks to Watch Here are two stocks fromthe broader Zacks Business Services sector: Montrose Environmental Group MEG: The company has a long-term earnings growth expectation of 18.3%. MEG surpassed the Zacks Consensus Estimate in three of the four trailing quarters and missed once, delivering an earnings surprise of 80.3%, on average. Zurn Elkay Water Solutions Corporation ZWS: The company has a long-term earnings growth expectation of 13%. ZWS surpassed the Zacks Consensus Estimate in the four trailing quarters, delivering an earnings surprise of 10%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Montrose Environmental Group, Inc. (MEG) : Free Stock Analysis Report Zurn Elkay Water Solutions Cor (ZWS) : Free Stock Analysis Report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
2 days ago
- CNBC
Charts suggest this online gambling stock is headed back to a new high, says Carter Worth
(Check out Carter's for actionable recommendations and live nightly videos.) On-line sports betting company DraftKings (DKNG) has yet to recoup its losses associated with the stock market's tariff-related sell-off. DKNG peaked in mid February (same as the S & P 500 Index) and then sold off hard, until ricocheting in early April (same as the S & P 500 Index) but has yet to make new highs (the S & P 500 Index is above its pre-sell-off February peak). Our thinking here is to play DraftKings for a catch-up trade; we believe the stock is headed back to its Feb. 14 high of $53.65. A prospective move to said high would represent a gain of 17% from current levels (DKNG is $45 at the time of this writing). The four (4) identical charts below tell the tale. There are many ways to "draw the lines" and any which way one does draw the lines, the implications are bullish: buy DraftKings. Identical DKNG chart 1 of 4 One way to "draw the lines"… Identical DKNG chart 2 of 4 Another way to "draw the lines"… Identical DKNG chart 3 of 4 Still another way to "draw the lines"… Identical DKNG chart 4 of 4 Yet another way to "draw the lines"… DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
06-08-2025
- CNBC
A look at the gold charts and whether the precious metal can add to its record-setting gains
There's been a lot of chatter around gold lately—and much of it hasn't been bullish. That's largely because gold (and, as a result, the GLD Gold ETF ) has failed to reclaim its April highs. But let's zoom out. Back in October 2023, soon after GLD bottomed, we began tracking the performance spread between GLD and the S & P 500 . Up until the end of 2024, the performances were remarkably even. They didn't move in lockstep the entire time, but they didn't drift far apart either. That changed in December. Gold took off while the SPX sputtered — before ultimately collapsing through the first week of April. By early April, the spread had widened to nearly over 100%. It looked like a runaway train—until the stock market's historic pivot. Thanks to the epic equity comeback, that spread has since been cut in half and then some. The question — especially for gold investors — is whether a further reversion to the mean is next. Importantly, though, this recent bout of relative weakness hasn't been because GLD cratered. Instead, it's been a massive rotation back into equities. So, do we really need stocks to fall apart again for gold to move higher? On the surface, that makes sense. But as noted above, for over a year, both SPX and gold rallied together. And during that stretch, both were taking advantage of bullish chart setups. In fact, over the last year, GLD broke out of five bullish patterns. The sixth one has been under construction since April—and so far, we haven't seen a breakout. That's been frustrating, but the more times that 315-zone is tested without subsequently breaking down, the greater the odds it eventually gives way. Turning to the GLD/SPX relative ratio, the recent reversal occurred near the same trendline that capped prior rallies — twice before. Each of those prior peaks was followed by a long period of underperformance. For things to play out differently this time, we'll need to see a higher low—and a good place for that to happen is near the yellow highlighted support area from recent years. Also worth watching: the 14-week RSI of the GLD/SPX ratio, which is trying to hold near the 50-level. If that area can serve as a floor, it would support another leg of relative outperformance. Lastly, from a big-picture perspective, gold gained roughly +240% from its 2015 low to its 2025 high. That's impressive—but still well below the +700% and +650% moves from the 1970s and early 2000s, respectively. There's no guarantee we see a repeat of those historic runs—but one thing is clear from the chart: Gold trends for extremely long periods. And from that angle, this time has been no different. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
