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Waters Corp. (WAT) Rolls Out New Products at Pitcon 2017

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Leading analytical laboratory instrument and software provider, Waters Corporation (WAT - Free Report) unveiled its latest offerings at the Pittcon Conference and Expo, an annual conference and exposition on laboratory science.

The company launched a “cloud deployable, compliance ready enterprise Chromatography Data Software (CDS)” – Empower Cloud. Also, it expanded its TA Instruments product line by adding three 800 Series dilatometers as well as launching SDT 650. Waters Corp. has an active research and development (R&D) division primarily focused on the development and commercialization of products which complement and update its existing product offerings.

Introduction of Empower Cloud continues the decades old legacy of Waters Corp.’s Empower Software. Empower Cloud is built on Waters Corp.’s easy-to-use software with Amazon Web Services (AWS). The company is confident that this offering will help clients improve consistency, quality and compliance standards, and boost intellectual property protection.

The latest Discovery Simultaneous Differential Scanning Calorimeter/Thermogravimetric Analyzer (“DSC/TGA”) SDT 650 is built on TA’s state-of-the-art technologies, including Modulated DSC, Modulated TGA, and Hi-Res TGA. It can provide unprecedented sensitivity, baseline stability, temperature and atmospheric control for clients, and can unlock opportunities for research. With this launch, Waters Corp. has pioneered the development of a simultaneous DSC/TGA device, which can find use in both research and production control environments.

In addition, TA Instruments unveiled three new 800 Series dilatometers – DIL 820, DIL 830 and ODP 860. Leveraging on TA’s exclusive True Differential technology and patented optical sensors, these devices can analyze samples with a resolution of up to 1 nm. They also feature high speed, no temperature-gradient furnaces which can reduce downtime between tests. Waters Corp. believes that these instruments can be deployed in a wide range of applications, ranging from material science to metals.

Waters Corp.’s had a disappointing run in the last quarter of 2016, as the stock declined 15.2%, faring worse than the Zacks classified Instrument-Scientific industry’s average decline of 7.1%. However, since then, the company has managed to recoup most of those losses, having appreciated 14.2% so far in 2017, better than the industry’s average return of 12.1%.

We believe an increased demand for research intensive products, especially this Zacks Rank #3 (Hold) company’s mass spectrometry solutions, is a major positive that will drive the company’s top line, going forward. New regulatory requirements by China’s Food and Drug Administration have been bolstering sales in China. Moving ahead, the company believes its industry-leading “Empower chromatography data systems” positions it well to reap the benefits from stringent regulatory standards.

Stocks to Consider

Some better-ranked stocks in the same space include Applied Materials, Inc. (AMAT - Free Report) , Science Applications International Corporation (SAIC - Free Report) and Ubiquiti Networks, Inc. . While Applied Materials sports a Zacks Rank #1 (Strong Buy), Science Applications and Ubiquiti Networks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

With four back-to-back earnings beat, Applied Materials has an average positive surprise of 3.9% for the last four quarters.

Science Applications International has a striking earnings surprise history for the trailing four quarters, having beaten estimates in each of them, for a remarkable average of 9.2%.

Ubiquiti Networks has managed to beat earnings estimates thrice over the trailing four quarters. It has an average positive surprise of 14.3%.

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