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Waters (WAT) Expands Portfolio With New Mass Spectrometer

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Waters Corporation (WAT - Free Report) is making efforts to strengthen its mass spectrometer portfolio.

This is evident from its latest introduction of the next-generation Xevo TQ Absolute IVD mass spectrometer (MS).

The new tandem quadrupole MS, which is up to five times more sensitive than similar commercial instruments for quantifying clinical analytes, has boosted the company’s MassTrak IVD LC-MS/MS Systems family.

Notably, the system enables clinical laboratories to expand their test menu to include multiplex panels and large molecules. Further, it helps in bolstering the testing capabilities of clinical laboratories and measuring trace-level analytes within a sample at low detection levels.

Further, the new system is designed to enhance the sensitivity of any mass spectrometer and simplify the characterization of complex samples.

Growth Prospects

The latest move bodes well for Waters’ growing efforts toward strengthening its reach in the clinical diagnostic market.

Per a report from Mordor Intelligence, the clinical diagnostic market is expected to reach $99.1 billion by 2028 at a CAGR of 6.1% from 2023 to 2028.

According to a report from Future Market Insights, the market is expected to reach a valuation of $126.6 billion by 2032, by registering a CAGR of 5.5% between 2022 and 2032.

A report from Delveinsight indicates that the underlined market is expected to witness a CAGR of 7.02% during the forecast period of 2022 to 2027.

We believe Waters’ growing prospects in this promising market will likely help it win investors’ confidence in the days ahead.

Notably, WAT has lost 12.5% in the year-to-date period compared with the industry’s decline of 1.1%.

Expanding Portfolio

The latest move is in sync with Waters’ deepening focus on expanding its product portfolio.

Apart from the latest launch, Waters recently introduced an advanced HPLC system called Alliance iS, which helps in reducing common errors by up to 40%, manages operational risk, mitigates disruptions and increases overall productivity.

The company also launched Battery Cycler Microcalorimeter solution, which helps collect six times more data and accelerate real-world testing from months to weeks.

Additionally, WAT unveiled a Software-as-a-Service application called waters_connect System Monitoring, which is designed for high-volume quality assurance/quality control laboratories, wherein it can reduce the turnaround time of product release samples and facilitate the planning and progress of critical analyses.

We believe that the company’s strengthening portfolio offerings will continue driving its customer momentum across various end markets, which, in turn, will benefit its financial performance.

The Zacks Consensus Estimate for 2023 sales is pegged at $3.17 billion, indicating year-over-year growth of 6.68%.

Moreover, the consensus mark for earnings is projected at $12.67 per share, indicating year-over-year growth of 5.41%.

Zacks Rank and Stocks to Consider

Currently, Waters carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks has gained 31.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.

Salesforce has gained 45.2% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.

Analog Devices has gained 14.1% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 10.5%.

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