$387.21
arrow_drop_up19.63%Is WAT a Buy or Sell based on AI Analysis?
Fundamental Analysis
Waters Corp (WAT) has a solid fundamental analysis based on key indicators such as its high return on equity (77.62%) and strong operating margin (36.96%). The company's net margin of 21.72% showcases its ability to generate profit from its operations effectively. Additionally, Waters Corp has a healthy current ratio of 2.22, indicating its ability to meet short-term obligations with its current assets. The company's solid financial position is further highlighted by its low debt-to-equity ratio of 2.13, demonstrating prudent management of its leverage. Furthermore, Waters Corp's impressive revenue growth rate (2.49%) and earnings per share of $10.83 underline its consistent operational performance and profitability. The company's price-to-earnings ratio of 31.95 reflects a fair valuation relative to its earnings and suggests potential for future growth. Moreover, Waters Corp's strong free cash flow margin of 14.96% and high gross margin of 59.57% indicate efficiency in its operations and ability to generate cash for reinvestment or dividend payments. Overall, these fundamental indicators portray Waters Corp as a fundamentally sound company with a solid financial foundation and growth potential in the healthcare sector.
Positive Development
Waters Corp has been outperforming its competitors in the recent past, indicating strong market position and investor confidence. The company's stock has shown significant growth in recent weeks, indicating strong investor interest and market sentiment. The company's financial health is robust, with high liquidity, low debt to equity ratio, and high return on equity. The company's management has been recognized for its strategic leadership, as seen in the appointment of Udit Batra as the President and CEO.
Negative Development
The company's stock has underperformed in certain days, indicating potential volatility in the market. The company's current ratio is only 2.22, indicating a low liquidity position. The company's debt to equity ratio is relatively high, at 2.0477, indicating a high level of debt. The company's net debt to total capital ratio is 0.5589, indicating a relatively high level of debt compared to total capital.
Technical Analysis
Waters Corp (WAT) has a neutral technical rating, indicating a balanced outlook based on technical indicators. The stock is currently trading at $346.76, with a market cap of $20.5B and an average volume of 389.64K. The stock's recent performance shows a seven-day price change of 4.69% and a one-month price change of 6.68%. Additionally, the stock has shown positive growth over the past three months, with a price change of 20.06%. In terms of technical indicators, Waters Corp has one buy indicator (ATR) and four hold indicators (RSI, MACD, ADX, and ROC) for the month. However, there are also three sell indicators (CCI, WILLR, and STOCHRSI) suggesting potential downside. The stock's trailing PE ratio is 31.95, and it has a beta of 0.93, indicating moderate volatility compared to the market. Overall, while the company's technical analysis shows a neutral outlook, investors may want to monitor key technical indicators for potential shifts in the stock's performance.
Conclusion and recommendation
Based on the data provided for Waters Corp (WAT), it is evident that the company is performing quite well in the stock market. With a market cap of $20.5B, Waters Corp has seen consistent growth in its stock price, with a current price of $346.76. The company's financial indicators, such as its return on equity of 77.62% and operating margin of 36.96%, reflect its strong financial health. Additionally, the company has a positive outlook for future growth, with a three-month price change percent of 20.06% and a five-year price change percent of 43.96%. In conclusion, based on the data provided, Waters Corp appears to be a solid investment option for investors looking for a stable and profitable stock. The company's strong financial performance, growth potential, and positive market indicators make it a promising choice for long-term investment. While there may be fluctuations in stock price in the short term, the overall outlook for Waters Corp is positive, and investors may consider adding this stock to their portfolio for potential growth and returns.