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Reasons Why Investors Can Consider Buying Veralto Stock Now

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Key Takeaways

  • Veralto's Water Quality and PQI segments drive growth across analytics, treatment and packaging services.
  • VLTO's focus on data centers lifts sales as demand grows for AI-powered water conservation products.
  • Veralto's TraceGains acquisition expands cloud workflow software, boosting reach and operating efficiency.

Veralto Corporation’s (VLTO - Free Report) collective growth is driven by its leading Water Quality (WQ) and Product Quality & Innovation (PQI) segments, covering water analytics, water treatment, marking and coding, and packaging and color services worldwide.

WQ is seeing significant growth with its innovative products and services through Hach, Trojan Technologies and ChemTreat brands. Hach provides analytical measurement instruments, digital solutions and related consumables for testing water quality. ChemTreat identifies water challenges and provides tailored chemical treatment plans and dosing protocols, optimizing customer water usage and promoting maximum reuse. Trojan Technologies offers UV and membrane filtration systems for water disinfection and contaminant removal, improving access to clean water. These collectively enhance water quality and reliability.

Meanwhile, PQI is experiencing rapid growth, aided by its brands such as Esko, Videojet, Linx, Pantone and X-Rite. Esko creates new packaging designs via design software and imaging systems, offering services to companies and their suppliers across 140 nations. Videojet and Linx help mark and code packaged goods and related consumables faster. Pantone, the color standard in the design industry, is gaining popularity progressively and is used by more than 10 million designers, marketers and others in the creative community, while X-Rite provides color management solutions, measuring the quality and consistency of color and appearance on printed packages across consumer and industrial products for more than 13,000 brands.

VLTO’s consistent strategic priority to serve data centers is also driving its sales growth. The water- and power-intensive nature of data centers, driven by the need to maintain uptime, is boosting demand for Veralto’s AI-powered products that improve energy efficiency and reduce water consumption. The recent acquisition of TraceGains, with its supply chain traceability and compliance expertise, boosts VLTO’s growth. The integration of TraceGains’ specialized cloud-based software solutions into the Veralto Enterprise System, specifically its Esko-branded digital workflow, expands VLTO’s market presence and improves its operating efficiency. 

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 each of 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 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 $3.84 per share, implying 8.5% growth from the prior year.

                              Veralto Corporation Revenue (TTM)

Veralto Corporation Revenue (TTM)

Veralto Corporation revenue-ttm | Veralto Corporation Quote

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) .

Genpact carries 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 holds a Zacks Rank of 2 at present. It 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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