We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Waters Corp. Rides High on Thriving Pharmaceutical Business
Read MoreHide Full Article
Last month, analytical laboratory instrument and software provider, Waters Corporation (WAT - Free Report) posted first-quarter 2017 results, getting back on the earnings beat trajectory. The company has a solid earnings surprise history. In the last 10 quarters, it beat estimates nine times, reporting in-line earnings in one.
Water Corp.’s bright pharmaceutical business ended 2016 on a healthy note. We believe that the company is set to continue its momentum in 2017. Its shares have appreciated 30.7% over the past six months, outperforming the Zacks categorized Instruments-Scientific industry’s average gain of 27.5%.
Recently, the company witnessed solid activity on the estimate revision front, indicating bullish sentiment. In the past one month, the Zacks Consensus Estimate for full-year 2017 earnings has trended up from $7.05 to $7.30, on the back of twelve upward estimate revisions versus zero downward. Let’s take a better look at the long-term growth drivers of the Zacks Rank #2 (Buy) company.
Growth Drivers
In the past few quarters, the company’s bottom line has benefitted from disciplined spending and careful use of capital. Waters Corp.’s key strengths include leading positions in the pharmaceutical market, broad global customer base and an impressive lineup of products.
For 2017, Waters Corp. remains confident that stable demand from the pharmaceutical business, modest recovery of industrial markets and growth in recurring revenue will accelerate its growth momentum. Based on these dynamics, the company is expecting mid-single-digit constant currency sales increase in 2017.
The company has delivered strong organic growth over the past few quarters supported by continuous operational improvement and ever-judicious use of shareholder capital. Waters Corp. has a strong presence in the chromatography instrument and pharmaceuticals markets, and expects to reap enhanced profit from them, going forward.
Positive macro trends, including rising global regulatory standards, increasing access of patients to prescription drugs, growing testing needs of newer biological drugs and ever-increasing complexity in molecular structure, are acting as tailwinds for the pharmaceutical business.
Moreover, Industrial business of the company is proving to be a major profit churner on the back of increasing regulation around food safety and quality, strict conditions for food testing, and environmental and fine chemical applications. In terms of geography, the company anticipates sales to grow steadily in the U.S. for full-year 2017, on the back of thriving U.S. pharmaceutical and industrial markets. Also, impressive growth of recurring revenues is expected to fuel growth in Asia.
Other Stocks to Consider
Some other stocks in the broader sector include Cohu, Inc. (COHU - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) , and NCR Corporation . While Cohu sport a Zacks Rank #1 (Strong Buy), Motorola Solutions and NCR Corporation hold the same Zacks Rank as Waters Corp. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohu has a striking earnings surprise history, with an average positive surprise of 121.2% over the trailing four quarters, beating estimates all through.
Motorola has a striking earnings surprise history for the last four quarters, having beaten estimates all through, for an impressive average beat of 16.6%.
NCR also has an excellent earnings surprise history, with an average beat of 11% for the trailing four quarters, beating estimates all through.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Waters Corp. Rides High on Thriving Pharmaceutical Business
Last month, analytical laboratory instrument and software provider, Waters Corporation (WAT - Free Report) posted first-quarter 2017 results, getting back on the earnings beat trajectory. The company has a solid earnings surprise history. In the last 10 quarters, it beat estimates nine times, reporting in-line earnings in one.
Water Corp.’s bright pharmaceutical business ended 2016 on a healthy note. We believe that the company is set to continue its momentum in 2017. Its shares have appreciated 30.7% over the past six months, outperforming the Zacks categorized Instruments-Scientific industry’s average gain of 27.5%.
Recently, the company witnessed solid activity on the estimate revision front, indicating bullish sentiment. In the past one month, the Zacks Consensus Estimate for full-year 2017 earnings has trended up from $7.05 to $7.30, on the back of twelve upward estimate revisions versus zero downward. Let’s take a better look at the long-term growth drivers of the Zacks Rank #2 (Buy) company.
Growth Drivers
In the past few quarters, the company’s bottom line has benefitted from disciplined spending and careful use of capital. Waters Corp.’s key strengths include leading positions in the pharmaceutical market, broad global customer base and an impressive lineup of products.
For 2017, Waters Corp. remains confident that stable demand from the pharmaceutical business, modest recovery of industrial markets and growth in recurring revenue will accelerate its growth momentum. Based on these dynamics, the company is expecting mid-single-digit constant currency sales increase in 2017.
The company has delivered strong organic growth over the past few quarters supported by continuous operational improvement and ever-judicious use of shareholder capital. Waters Corp. has a strong presence in the chromatography instrument and pharmaceuticals markets, and expects to reap enhanced profit from them, going forward.
Positive macro trends, including rising global regulatory standards, increasing access of patients to prescription drugs, growing testing needs of newer biological drugs and ever-increasing complexity in molecular structure, are acting as tailwinds for the pharmaceutical business.
Moreover, Industrial business of the company is proving to be a major profit churner on the back of increasing regulation around food safety and quality, strict conditions for food testing, and environmental and fine chemical applications. In terms of geography, the company anticipates sales to grow steadily in the U.S. for full-year 2017, on the back of thriving U.S. pharmaceutical and industrial markets. Also, impressive growth of recurring revenues is expected to fuel growth in Asia.
Other Stocks to Consider
Some other stocks in the broader sector include Cohu, Inc. (COHU - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) , and NCR Corporation . While Cohu sport a Zacks Rank #1 (Strong Buy), Motorola Solutions and NCR Corporation hold the same Zacks Rank as Waters Corp. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohu has a striking earnings surprise history, with an average positive surprise of 121.2% over the trailing four quarters, beating estimates all through.
Motorola has a striking earnings surprise history for the last four quarters, having beaten estimates all through, for an impressive average beat of 16.6%.
NCR also has an excellent earnings surprise history, with an average beat of 11% for the trailing four quarters, beating estimates all through.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>