Here's Why Waters (WAT) is a Strong Growth Stock

Zacks Investment Research highlights Waters Corp (WAT), an analytical instrument manufacturer, as a potential growth stock pick. WAT holds a Zacks Rank #3 (Hold) with a VGM Score of B, and a Growth Style Score of A, projecting 8.6% earnings growth for the current fiscal year; the consensus EPS estimate for fiscal 2025 has increased by $0.04 to $12.88 after upward revisions from four analysts.

Analysis

Waters Corp (WAT), an analytical instrument manufacturer, currently holds a Zacks Rank #3 (Hold) but exhibits strong growth characteristics. The company has been assigned a VGM Score of B and, notably, a Growth Style Score of A, underpinned by a forecasted year-over-year earnings growth of 8.6% for the current fiscal year. Reinforcing this positive outlook, four analysts have revised their earnings estimates upward for fiscal 2025 within the last 60 days, leading to a $0.04 increase in the Zacks Consensus Estimate to $12.88 per share. Furthermore, WAT demonstrates a consistent ability to outperform expectations, boasting an average earnings surprise of 4%. The combination of a solid Zacks Rank, albeit a Hold, with top-tier Growth and VGM Style Scores positions WAT as a noteworthy candidate for investor consideration, particularly for those prioritizing growth.

Key Decisions for Investors

• Growth-focused investors should evaluate Waters Corp given its 'A' Growth Style Score, projected 8.6% earnings growth for the current fiscal year, and positive analyst estimate revisions for fiscal 2025.
• Despite the Zacks Rank #3 (Hold), the favorable VGM Score of B and upward earnings estimate momentum suggest placing WAT on a watchlist, monitoring for any potential rating upgrades or further strengthening fundamentals.
• Investors should consider the company's consistent 4% average earnings surprise as an indicator of operational execution, while balancing this with the neutral 'Hold' rating when assessing its fit within a diversified portfolio.