Why Waters (WAT) is a Top Growth Stock for the Long-Term

Zacks highlights Waters Corp (WAT), an analytical instrument manufacturer, as a potential growth stock given its 'A' Growth Style Score and a VGM Score of 'B'. The company's earnings are projected to grow 8.7% this fiscal year, and the consensus estimate for fiscal year 2025 has increased by $0.01 to $12.89 per share following upward revisions by four analysts; WAT also has a Zacks Rank of #3 (Hold).

Analysis

Waters Corp. (WAT), an analytical instrument manufacturer specializing in mass spectrometry, liquid chromatography, and thermal analysis technologies, currently holds a Zacks Rank #3 (Hold). Despite this neutral overall rating, the company exhibits strong growth characteristics, as indicated by a Zacks Growth Style Score of 'A' and a VGM (Value, Growth, Momentum) Score of 'B'. The company is forecasting significant year-over-year earnings growth of 8.7% for the current fiscal year. This positive outlook is further supported by recent analyst activity: four analysts have revised their earnings estimates for fiscal 2025 upwards in the last 60 days, contributing to a $0.01 increase in the Zacks Consensus Estimate to $12.89 per share. Historically, Waters Corp. has demonstrated an ability to exceed expectations, evidenced by an average earnings surprise of 4%. The combination of a top-tier Growth Style Score, positive earnings estimate revisions, and strong projected earnings growth suggests underlying fundamental strength, positioning WAT as a noteworthy consideration for investors focused on growth, even with its current Hold designation.

Key Decisions for Investors

• Investors, particularly those with a growth-focused mandate, should consider Waters Corp. given its 'A' Growth Style Score and projected 8.7% earnings growth, while noting its overall Zacks Rank #3 (Hold).
• Carefully monitor upcoming earnings reports and any further revisions to analyst earnings estimates for WAT to confirm the continuation of its growth trajectory and positive earnings surprise trend.
• Given the 'Hold' rating, investors should weigh the strong growth indicators against any potential unstated factors that might be tempering a more bullish outlook before initiating or modifying positions.