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Reasons Why Investors Can Consider Buying Veralto Stock Now
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Key Takeaways
Veralto shares rose 5.2% over the past month, while its industry declined 0.9%.
Veralto's 2026 earnings estimates increased 2.6%, with revenues projected to grow 6.9%.
Water Quality growth, semiconductor demand and strong liquidity support Veralto's prospects.
Veralto (VLTO - Free Report) , a leading provider of waste removal services, has delivered an impressive performance over the past month and shows potential to sustain its momentum in the near term. Therefore, if you have not yet taken advantage of the share price appreciation, you should add the stock to your portfolio.
What Makes VLTO an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a decent run over the past month. Shares of Veralto have risen 5.2% against the 0.9% decline of the industry it belongs to.
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.
Northward Estimate Revisions: Over the past 30 days, four earnings estimates for 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2026 earnings has increased 2.6% during this period.
Positive Earnings Surprise: 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 6.6% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Veralto’s third-quarter 2026 revenues is pegged at $1.50 billion, indicating a 6.5% increase from the year-ago quarter. For fiscal 2026, the consensus estimate is $5.88 billion, indicating 6.9% year-over-year growth.
The consensus estimate for third-quarter earnings is pegged at $1.08 per share, indicating 9.1% year-over-year growth. For the full year, the consensus mark is pegged at $4.35 per share, implying 11.3% growth from the prior year.
Growth Factors: Veralto is benefiting from strong growth in U.S. infrastructure investments and rising semiconductor demand. Its Water Quality ("WQ") and Product Quality and Innovation ("PQI") segments position it as one of the industry leaders. The company’s Water Quality segment is driving growth by offering innovative solutions from brands such as Hach, ChemTreat and Trojan Technologies, which help customers monitor water quality, optimize water usage and improve access to clean water.
The WQ segment recorded double-digit growth across data centers, chemical processing, oil and gas, and food and beverage markets during the second quarter of 2026. Recently, the company acquired In-Situ Inc., an environmental water measurement and monitoring solutions provider, to expand its presence in environmental water monitoring and strengthen the capabilities of OTT HydroMet, a provider of water and weather intelligence solutions, within the water analytics platform.
VLTO has established itself as a trusted leader in the PQI segment, serving major consumer-packaged goods, life sciences and pharmaceutical companies. The segment drives growth through brands such as Esko, Videojet, Linx Printing Technologies, Pantone and X-Rite. The company reported that PQI revenues rose 3.8% year over year to $566 million during the second quarter of 2026.
The rise of global semiconductor production enhances Veralto’s prospects, as ultra-pure water is critical for semiconductor manufacturing. Though the semiconductor industry has faced recent challenges, the long-term outlook remains favorable, aided by rising demand for digital tools, artificial intelligence and autonomous technologies, which drive the need for semiconductors.
VLTO’s strong financial position enhances its appeal to investors. As of the second quarter of 2026, the company reported $2.1 billion in cash and cash equivalents, providing significant liquidity for growth initiatives, R&D, and potential acquisitions. The company maintains robust liquidity due to its strong cash-generation capabilities. At the end of the second quarter of 2026, the company reported a current ratio of 1.78, substantially higher than the industry average of 1.08. A current ratio above 1 signifies that VLTO is well-positioned to meet its short-term liabilities, reflecting financial stability.
RB Global carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 14.4%. RBA delivered a trailing four-quarter earnings surprise of 8.3%, on average.
Thomson Reuters also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 15.3%. TRI’s earnings beat estimates in each of the trailing four quarters, with the surprise being 2.7%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Reasons Why Investors Can Consider Buying Veralto Stock Now
Key Takeaways
Veralto (VLTO - Free Report) , a leading provider of waste removal services, has delivered an impressive performance over the past month and shows potential to sustain its momentum in the near term. Therefore, if you have not yet taken advantage of the share price appreciation, you should add the stock to your portfolio.
What Makes VLTO an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a decent run over the past month. Shares of Veralto have risen 5.2% against the 0.9% decline of the industry it belongs to.
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.
Northward Estimate Revisions: Over the past 30 days, four earnings estimates for 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2026 earnings has increased 2.6% during this period.
Positive Earnings Surprise: 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 6.6% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Veralto’s third-quarter 2026 revenues is pegged at $1.50 billion, indicating a 6.5% increase from the year-ago quarter. For fiscal 2026, the consensus estimate is $5.88 billion, indicating 6.9% year-over-year growth.
The consensus estimate for third-quarter earnings is pegged at $1.08 per share, indicating 9.1% year-over-year growth. For the full year, the consensus mark is pegged at $4.35 per share, implying 11.3% growth from the prior year.
Growth Factors: Veralto is benefiting from strong growth in U.S. infrastructure investments and rising semiconductor demand. Its Water Quality ("WQ") and Product Quality and Innovation ("PQI") segments position it as one of the industry leaders. The company’s Water Quality segment is driving growth by offering innovative solutions from brands such as Hach, ChemTreat and Trojan Technologies, which help customers monitor water quality, optimize water usage and improve access to clean water.
The WQ segment recorded double-digit growth across data centers, chemical processing, oil and gas, and food and beverage markets during the second quarter of 2026. Recently, the company acquired In-Situ Inc., an environmental water measurement and monitoring solutions provider, to expand its presence in environmental water monitoring and strengthen the capabilities of OTT HydroMet, a provider of water and weather intelligence solutions, within the water analytics platform.
VLTO has established itself as a trusted leader in the PQI segment, serving major consumer-packaged goods, life sciences and pharmaceutical companies. The segment drives growth through brands such as Esko, Videojet, Linx Printing Technologies, Pantone and X-Rite. The company reported that PQI revenues rose 3.8% year over year to $566 million during the second quarter of 2026.
Veralto Corporation Revenue (TTM)
Veralto Corporation revenue-ttm | Veralto Corporation Quote
The rise of global semiconductor production enhances Veralto’s prospects, as ultra-pure water is critical for semiconductor manufacturing. Though the semiconductor industry has faced recent challenges, the long-term outlook remains favorable, aided by rising demand for digital tools, artificial intelligence and autonomous technologies, which drive the need for semiconductors.
VLTO’s strong financial position enhances its appeal to investors. As of the second quarter of 2026, the company reported $2.1 billion in cash and cash equivalents, providing significant liquidity for growth initiatives, R&D, and potential acquisitions. The company maintains robust liquidity due to its strong cash-generation capabilities. At the end of the second quarter of 2026, the company reported a current ratio of 1.78, substantially higher than the industry average of 1.08. A current ratio above 1 signifies that VLTO is well-positioned to meet its short-term liabilities, reflecting financial stability.
Other Stocks to Consider
A couple of other top-ranked stocks in the broader Business Services sector are RB Global, Inc. (RBA - Free Report) and Thomson Reuters Corporation (TRI - Free Report) .
RB Global carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 14.4%. RBA delivered a trailing four-quarter earnings surprise of 8.3%, on average.
Thomson Reuters also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 15.3%. TRI’s earnings beat estimates in each of the trailing four quarters, with the surprise being 2.7%, on average.