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Reasons Why Investors Can Consider Buying Veralto Stock Now

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Key Takeaways

  • VLTO expands through Water Quality and Product Quality & Innovation amid rising digital and AI demand.
  • The TraceGains acquisition enhances supply chain traceability and strengthens VLTO's growth runway.
  • Consensus estimates show a rise in 2025 revenues and earnings alongside a solid record of earnings surprises.

Veralto Corporation (VLTO - Free Report) is growing rapidly, driven mainly by its leading Water Quality (WQ) and Product Quality & Innovation (PQI) segments.

WQ, with its innovative products and services that amplify water quality and reliability, is seeing significant growth, driven by the CHIPS Act of 2022(which provides semiconductor manufacturing grants, research investments and tax credits), rising demand for digital tools, AI and autonomous technologies, and increased government funding to address water infrastructure challenges.

Meanwhile, PQI is experiencing rapid growth by serving the major consumer-packaged goods (CPG), life sciences and pharmaceutical companies. The Marketing & Coding (M&C) sub-segment of PQI has become crucial for CPG and pharmaceutical companies due to the need for digitalization, as it combines supply chain operations with consumer insights, quick adaptation to market trendsand stronger customer engagement.

The recent acquisition of TraceGains, with its supply chain traceability and compliance expertise, boosts VLTO’s growth. If you haven’t taken advantage of this appealing stock yet, it’s time you add it to your portfolio.

Other Factors That Make VLTO an Attractive Pick

Solid Rank: VLTO currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Positive Earnings Surprise History: VLTO has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 6.5% on average.

Strong Growth Prospects: The Zacks Consensus Estimate for Veralto’s fourth-quarter 2025 revenues is pegged at $1.40 billion, indicating a 4.4% increase from the year-ago quarter. For 2025, the consensus estimate is pegged at $5.5 billion, indicating a year-over-year rise of 6.1%.

The consensus estimate for fourth-quarter 2025 earnings is pegged at 98 cents per share, indicating 3.2% year-over-year growth. For the full year, the consensus mark is pegged at $3.8 per share, implying 8.5% growth from the prior year.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Genpact (G - Free Report)  and Palantir Technologies  (PLTR - Free Report) .

Genpactcarries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 9.6%.

Genpact delivered a trailing four-quarter earnings surprise of 5.5% on average.

Palantir Technologies carries a Zacks Rank of 2 at present. PLTR has a long-term earnings growth expectation of 50%.

Palantir beat earnings estimates in three of the last four quarters and matched estimates once, delivering an earnings surprise of 16.3% on average.


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Genpact Limited (G) - free report >>

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Veralto Corporation (VLTO) - free report >>

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