Veralto Corporation stock up 15% driven by growth opportunities in water quality and product inspection.

From Nasdaq
February 28, 2025 12:45:00 PM:

Veralto Corporation (VLTO) has seen a 15% gain over the past year, with an impressive Growth Score of A. The company has an expected long-term EPS growth rate of 6.3%, with earnings expected to grow at 3.4% in 2025 and 9% in 2026.

VLTO’s leadership in the Water Quality segment is driving growth opportunities in the U.S., particularly in the industrial and municipal verticals. The CHIPS Act of 2022 and global semiconductor production growth are key drivers. In the municipal sector, increased U.S. government funding for water infrastructure upgrades is boosting demand for VLTO’s solutions.

In the Product Quality and Inspection (PQI) segment, VLTO serves major CPG, life sciences, and pharmaceutical companies. The Marketing & Coding sub-segment is a significant revenue contributor, essential for regulatory compliance and data management. VLTO’s PQI revenues grew by 3.7% in 2024, with the recent acquisition of TraceGains enhancing digital workflow solutions.

Trojan Technologies, a subsidiary of VLTO, is set to enhance its European customer support by acquiring AQUAFIDES. This acquisition will broaden VLTO’s UV treatment portfolio, adding fit-for-purpose systems. VLTO’s commitment to shareholder value is evident through consistent quarterly dividend payments and a recent 22% increase to 11 cents per share.

VLTO currently holds a Zacks Rank #3 (Hold). Other stocks to consider are Coinbase Global (COIN) and ABM Industries (ABM). COIN has a Zacks Rank of 1 (Strong Buy) with a 3% long-term earnings growth expectation and a 46.2% average earnings surprise. ABM holds a Zacks Rank of 2 (Buy) with a 5.2% long-term earnings growth expectation and an 11.6% average earnings surprise.

Read more at Nasdaq: Veralto Stock Rises 15% in a Year: Here’s What You Should Know