Latest news with #VeraltoCorporation
Yahoo
16-05-2025
- Business
- Yahoo
Veralto's Growth Prospects Shine Despite Competitive Risks
Veralto Corporation VLTO is currently benefiting from its leadership in Water Quality and PQI segments, strategic acquisitions, and growing dividends. Quarterly adjusted earnings of 95 cents per share surpassed the consensus mark by 9.2% and increased 13.1% year over year. Total revenues of $1.33 billion beat the consensus mark by a 3.8% margin and grew 6.9% from the year-ago quarter. Veralto Corporation revenue-ttm | Veralto Corporation Quote VLTO's leadership in the Water Quality segment positions it to capitalize on robust growth opportunities in the United States. The industrial and municipal verticals serve as key drivers of this growth. In the industrial vertical, the CHIPS Act of 2022 provides a significant tailwind through semiconductor manufacturing grants, research investments and tax credits. Additionally, the global increase in semiconductor production enhances VLTO's prospects, as ultra-pure water is critical for semiconductor manufacturing. While the semiconductor industry has faced recent challenges, the long-term outlook remains favorable, driven by rising demand for digital tools, AI and autonomous technologies, which necessitate more semiconductor production. In the municipal vertical, increased U.S. government funding to address the country's water infrastructure challenges offers a strong growth catalyst. This support is expected to boost investments in upgrading and modernizing water systems, further driving demand for VLTO's solutions. The company's WC revenues grew 3.4% year over year in 2024. VLTO has established itself as a trusted leader in the Product Quality and Inspection (PQI) segment, serving the major consumer-packaged goods (CPG), life sciences, and pharmaceutical companies. The Marketing & Coding (M&C) sub-segment is the largest contributor to PQI's revenues, reflecting its critical role in driving industry growth. M&C has become indispensable for CPG and pharmaceutical companies in a digital-first world. In the pharmaceutical sector, coding ensures regulatory compliance, facilitates accurate data management and enhances communication with healthcare professionals and patients. These capabilities are vital as the industry increasingly relies on digital solutions for efficiency and transparency. For CPG companies, M&C integrates supply chain operations with consumer insights, enabling quick adaptation to market trends and fostering stronger customer engagement. This innovation helps businesses stay competitive in an ever-evolving landscape. By addressing these critical needs, VLTO empowers its clients to innovate, build stronger customer relationships and maintain a competitive edge. This robust positioning within high-growth industries highlights VLTO's potential for sustained success, making it an appealing investment opportunity for stakeholders seeking exposure to innovative and resilient markets. The company's PQI revenues grew 3.7% year over year in 2024. The recent acquisition of TraceGains strengthened the segment by adding advanced digital workflow solutions, particularly for the food and beverage industry. Veralto's Trojan Technologies is set to strengthen its European customer support and service excellence through the planned acquisition of AQUAFIDES, expected to be finalized in the second quarter of 2025. This acquisition will also broaden VLTO's UV treatment portfolio by adding high-quality, efficient, and purpose-built systems. VLTO's commitment to shareholder returns, despite being a recent entrant to the stock market, makes it an appealing investment option. Since its NYSE listing in late 2024, the company has consistently paid a quarterly dividend of 9 cents, demonstrating financial discipline. The recent 22% dividend increase to 11 cents per share further underscores VLTO's confidence in its financial strength and growth prospects. This early adoption of a progressive dividend policy is particularly significant for a newly listed company, as it signals stability, profitability and a shareholder-friendly approach. VLTO faces competitive pressure from established players and new entrants in the PQI and digital workflow solution sectors. These competitors may offer similar or superior technologies at more competitive prices, limiting VLTO's market share and growth potential. As the industry becomes more crowded, the company could struggle to differentiate its offerings, which might lead to reduced customer loyalty or price compression. Competitive pressure may hinder VLTO's ability to maintain strong margins, ultimately affecting profitability and investor confidence. For risk-averse investors, the potential integration risks associated with VLTO's acquisition of TraceGains could be a deterrent. The uncertainty surrounding the integration process, such as potential operational disruptions, increased costs, or delays in realizing synergies, increases risk. If the integration faces challenges, it could negatively impact VLTO's short-term profitability and growth projections, creating volatility. VLTO carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. S&P Global SPGI reported better-than-expected first-quarter 2025 results. SPGI's adjusted EPS of $4.37 surpassed the Zacks Consensus Estimate by 3.6% and gained 9% year over year. Revenues of $3.8 billion beat the consensus estimate by 2% and grew 8.3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Verisk VRSK has reported better-than-expected first-quarter 2025 results. VRSK's adjusted earnings were $1.73 per share, surpassing the Zacks Consensus Estimate by 3.6% and increasing 6.1% from the year-ago quarter. Total revenues of $753 million beat the consensus estimate marginally and increased 7% on a year-over-year basis. Interpublic IPG reported mixed first-quarter 2025 results. The company's earnings topped the Zacks Consensus Estimate, while revenues missed the mark. IPG's adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion. 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 Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
02-05-2025
- Business
- Yahoo
Veralto Corporation (VLTO): Among Billionaire Ken Fisher's Industrial Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Veralto Corporation (NYSE:VLTO) stands against other billionaire Ken Fisher's industrial stock picks with huge upside potential. The economy strongly influences industrial stocks, which have fallen during recent downturns. However, 2025 looks like a key year for this sector, with these companies working in manufacturing, shipping, and aerospace, and investors are now focusing on businesses that adapt quickly to global shifts. The industrial sector grew 26% in 2024, showing strength despite high inflation and weak global demand. Going into 2025, these stocks are getting more attention thanks to new growth drivers and better economic conditions. Even with possible higher tariffs under Trump's trade policies, the outlook remains positive. President Trump has proposed a 25% tariff on steel and aluminum from countries like South Korea, Vietnam, and Canada. These tariffs might raise costs and also boost U.S. infrastructure and manufacturing spending; as Canada's Innovation Minister Francois-Philippe Champagne said, 'Canadian steel and aluminum support key industries in the U.S., from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.' All in all, this trade shift could help American industrial companies, especially those bringing supply chains back home. Moreover, lower interest rates should help the sector by increasing construction and housing projects in 2025. On the other hand, falling mortgage rates will attract more homebuyers, creating demand for building materials and equipment. Ken Fisher said, 'Investors are ignoring some of these positive developments,' pointing to an overlooked chance in housing-related businesses. Aerospace is also making a comeback through airlines' need to replace aging planes, driving demand for maintenance and parts, which demonstrates significant progress in aerospace-based companies. Meanwhile, only 25% of the $1.9 trillion in planned North American infrastructure projects have started construction, suggesting big growth ahead for equipment providers and construction companies. In 2025, industrial stocks look promising due to clean technology and automation advancements. As reported in Deloitte's 2025 Manufacturing Industry Outlook, over $31 billion went into clean-tech manufacturing facilities in 2024, showing a move toward sustainability. With decreasing interest rates and high demand for environmentally friendly tech, these investments are highly probable to drive growth in the industry. Ken Fisher noted made the following comment about the current situation: 'The fear is bigger than the problem can be. Single-period stock market comparisons are always iffy, but it may well be this goes something like the 1998 stock market correction leading to a 26% annual return.' His view suggests a more positive review of the industrial sector, predicting it will grow despite tariff concerns. With investments in automation, clean tech, and domestic production, these stocks have strong long-term potential even with short-term challenges. To compile this list, we reviewed Ken Fisher's SEC Q4 2024 13F filings. We picked 10 stocks with the highest upside potential from their current levels as of time of writing this article. Finally, we ranked the stocks in ascending order based on their highest analyst upside potential while also outlining hedge fund sentiment regarding these stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An entrepreneur presenting the latest technology innovation in electrical components. Number of Hedge Fund Holders: 43 Upside Potential: 20.23% Veralto Corporation (NYSE:VLTO) is a key player in water analytics, treatment, and product ID tech. The company works through two main divisions: Water Quality (WQ) and Product Quality & Innovation (PQI). WQ handles precision tools and chemical treatment for cities and industries, while PQI provides digital management and printing solutions for consumer goods packaging. In the quarter ended December 31, 2024, Veralto Corporation (NYSE:VLTO) showed sales hitting $1.3 billion, up 4.4% from the previous year. Core sales grew 4.6%, with volume up 3.1% and pricing up 1.5%, while adjusted earnings jumped 9% to $0.95 per share, generating $263 million in free cash flow. The Water Quality division brought in $811 million with core sales climbing 4.9% and margins reaching 25.5%. The company's PQI division delivered $534 million, up 5.4%, with 24.9% margins. For all of 2024, Veralto's sales reached nearly $5.2 billion, with earnings up 11% to $3.54 per share. Veralto Corporation (NYSE:VLTO) generated $820 million in free cash and ended with $1.1 billion in cash on hand. Moreover, the company bought TraceGains for $350 million while putting $15 million into Axine Water Technologies, and selling off its AVT product line. Research and development spending grew to 5% of sales, backing new products like their 7920 UV Laser Marking System. For 2025, Veralto expects low to mid-single-digit sales growth, earnings between $3.60-$3.70, and cash conversion of 90-100%, and Q1 earnings should hit $0.84-$0.88. Strong demand for water treatment and packaging tech continues to drive the growth of Veralto Corporation (NYSE:VLTO) across regions. Overall, VLTO ranks 9th on our list of billionaire Ken Fisher's industrial stock picks with huge upside potential. While we acknowledge the potential of VLTO, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VLTO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Veralto Corporation (VLTO): Among the Best New Stocks to Buy According to Billionaires
We recently published a list of . In this article, we are going to take a look at where Veralto Corporation (NYSE:VLTO) stands against other best new stocks to buy according to billionaires. International IPO activity during the first quarter of 2025 was characterized by profound uncertainty coming from geo-political shifts and the ever-changing tariff policies around the globe. According to an April 10, 2025 report by EY Global, the global IPO market remained steady year-over-year in terms of volume but grew 20% in terms of value. The first quarter of 2025 witnessed a total of 291 IPOs with a total value of $29.3 billion. Notably, the United States was a key player as it posted the third-strongest Q1 performance with a total of 59 listings. On the other hand, the Asia-Pacific market also showed signs of recovery and the EMEA region remained steady year-over-year. The current global macroeconomic environment has created both challenges and opportunities for the IPOs around the world. For instance, the tariff policies and the ongoing trade war have raised the expectations of inflation, casting uncertainty over the monetary policies. On the other hand, the geo-political tensions have led to increased budgetary spending around the world, thereby leading to a surge in investment in the Aerospace and Defence sector. The report by EY Global anticipates a surge in IPO activity for this segment. Moreover, the disruptive trends in artificial intelligence are allowing IPO candidates to enhance their market strategies and offerings using the technology. As per the report, AI technology has started to become an integral part of companies operating in the financial, health, and life sciences industries. While the United States market witnessed a 51% increase in the number of IPOs when compared to 2024, however, the future looks uncertain. George Chan, EY Global IPO Leader highlighted that the growth in IPO activity during the first quarter was on the back of an optimistic market outlook at the start of the year. However, currently, many companies who had planned their IPOs in the first or second quarter of the year have delayed their public offering to later quarters or 2026. Chan advised that it is important for investors to look for companies with unshakeable fundamentals, agility, and adaptability to steer with the uncertainty of the market. To curate the list of 10 best new stocks to buy according to billionaires we used the Finviz stock screener and Insider Monkey's Q4 2024 billionaire database. Using the screener we aggregated a list of companies that went public in the past 2 years. After sorting the list by market capitalization, we ranked each new stock in ascending order of the number of billionaire investors. We have also added the hedge fund sentiment around each stock. Please note that the data was recorded on April 25, 2025. Also, note that in cases where two or more stocks had an equal number of billionaire investors we used market capitalization as a tie-breaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Close-up of a faucet gushing out clean, clear water, emphasizing the quality of services provided by the company. Veralto Corporation (NYSE:VLTO) is a technology company that operates through two main business segments namely, the Water Quality Segment and the Product Quality & Innovation Segment. The Water Quality Segment provides advanced water analytics and treatment solutions. Whereas, the Product Quality & Innovation Segment deals in solutions for marking, coding, packaging, and color management of packaged consumer goods. Earlier this year, on February 17, Veralto Corporation (NYSE:VLTO) announced its definitive agreement to acquire AQUAFIDES, an Australian ultraviolet (UV) water treatment technology, for approximately $20 million. The deal strategically enhances the company's Water Quality segment by expanding its UV treatment portfolio. Moreover, during the fiscal fourth quarter of 2024, the company grew its total sales by 4.4% year-over-year. This was driven by growth in both its segments. The Water Quality segment saw a core sales growth of 4.9% driven by volume in Water Treatment Solutions and UV Treatment Systems, whereas, Product Quality & Innovation improved its core sales by 4.1%. Looking ahead, management expects core sales to be in the low to mid-single-digit range for fiscal 2025. Being held by 10 billionaire investors, Veralto Corporation (NYSE:VLTO) is one of the best new stocks to buy according to billionaires. Overall, VLTO ranks 6th on our list of best new stocks to buy according to billionaires. While we acknowledge the potential of VLTO to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VLTO but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Veralto Corporation (VLTO): Among Top Stocks in Bill Gates' Portfolio with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Veralto Corporation (NYSE:VLTO) stands against other top stocks in Bill Gates' portfolio with huge upside potential. Bill Gates became the youngest billionaire back in 1987 when he took Microsoft public, and he has been a billionaire since then. Gates has contributed a huge amount of his wealth to philanthropic activities and intends to donate 99.96% to charity when he dies. To oversee his philanthropic endeavours, Gates founded the Bill & Melinda Gates Foundation Trust. The trust oversees investment assets, with Bill and his wife, Melinda French, serving as trustees. Read More: 10 Best Stocks to Buy According to Bill Gates Michael Larson at Cascade Asset Management Company manages Gates' wealth and investments. Larson also serves as the chief investment officer for the Bill & Melinda Gates Foundation. Cascade has been managing Bill Gates' investments since 1994. Larson has helped Gates grow his wealth from under $10 billion to almost $130 billion. Recently, Bill was asked about the tariffs during a CNBC interview celebrating the 50th Anniversary of his company, to which he replied that he doesn't know what the economic effect will be, but so far it's just on goods. 'Eventually, will it be on services? Who knows?' he added. He said that politicians should be focusing more on AI, which they are not. He said that we will adjust, and AI is the biggest trend today. Before the elections, Gates pointed out that tariffs will slow down the overall welfare, and the ripple effect of tariffs will impact innovation in the U.S. Bruce Kasman, the chief economist at JP Morgan Chase, now expects the chance of a global recession to be around 60% compared to his previous estimate of 40%. As of Q4 2024, the Gates Foundation reported managing $42.28 billion in the 13F securities. The tech and industrial goods sectors represent 29% and 26.3% of the portfolio, respectively. The finance sector accounted for nearly 21% of the fund's portfolio. We searched through Bill & Melinda Gates Foundation Trust's Q4 2024 13F filings to identify the top stocks in Bill Gates' portfolio. The stocks are ranked in ascending order of the analyst upside, as of April 22. We have also mentioned the number of hedge funds holding stakes in these stocks. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Copyright: kurga / 123RF Stock Photo Analyst Upside: 17.27% No. of Hedge Fund Holders: 43 Veralto Corporation (NYSE:VLTO) offers technological solutions to monitor and protect major resources worldwide. Its services include water analytics, water treatment, packaging, marking and coding, and colour solutions. The company operates through two segments including Water Quality (WQ) and Product Quality & Innovation (PQI). Veralto Corporation (NYSE:VLTO) is set to acquire Austria-based company Aquafides for almost $20 million. Aquafides improves Trojan Technologies' ability to serve European customers. The company will add to Veralto's UV treatment portfolio and offer growth opportunities in this segment. Veralto Corporation posted strong results in FY2024, with the full-year revenue in line with analyst estimates. The company's revenue came in at $5.19 billion, up from $5.02 billion in 2023. The earnings per share exceeded analyst estimates by 1.3%, reported at $3.54 per share. One of the key drivers for the revenue was Veralto's WQ segment, which contributed almost 60% of the total revenue. Nathan Jones from Stifel reiterates a Buy rating on VLTO shares, lowering the price target to $102 from $110. The analyst has revised following the concerns regarding a potential industrial recession amid the tariffs. However, Jones believes that despite the expected economic downturn, Veralto's WQ and PQI segments will show resilience due to their market exposure to essential consumer goods, including food and pharmaceuticals. Overall, VLTO ranks 10th on our list of top stocks in Bill Gates' portfolio with huge upside potential. While we acknowledge the potential of VLTO to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than VLTO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
