Milford, Massachusetts-based Waters Corporation (WAT) provides analytical workflow solutions. With a market cap of $33.6 billion, the company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans.
Shares of this global analytical instrumentation leader have underperformed the broader market over the past year. WAT has declined 1.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.9%. In 2026, WAT stock is down 9.9%, compared to the SPX’s 9.2% rise on a YTD basis.
Narrowing the focus, WAT’s underperformance is also apparent compared to the State Street Health Care Select Sector SPDR ETF (XLV). The exchange-traded fund has gained about 14.8% over the past year. Moreover, the ETF’s 3.2% dip on a YTD basis outshines the stock’s losses over the same time frame.
On May 5, WAT shares surged 13.5% after reporting its Q1 results. Its adjusted EPS of $2.70 surpassed Wall Street expectations of $2.31. The company’s revenue was $1.3 billion, beating Wall Street forecasts of $1.2 billion. WAT expects full-year adjusted EPS in the range of $14.40 to $14.60, and revenue ranging from $6.4 billion to $6.5 billion.
For the current fiscal year, ending in December, analysts expect WAT’s EPS to grow 10.4% to $14.50 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering WAT stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, and eight “Holds.”
This configuration is more bullish than two months ago, with 10 analysts suggesting a “Strong Buy.”
On May 18, Daniel Arias from Stifel Financial Corp. (SF) maintained a “Hold” rating on WAT, with a price target of $380, implying a potential upside of 11% from current levels.
The mean price target of $405.11 represents an 18.3% premium to WAT’s current price levels. The Street-high price target of $480 suggests an ambitious upside potential of 40.2%.
On the date of publication, Neha Panjwani 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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