DailyIQ
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Sector:IndustrialsAll sectors
Last updated 2 minutes ago

VLTO·Veralto Corporation

$.
+. (+.%)
After Hours
High
$93.45
Open
$92.72
Market Cap
22.98B
52W High
$110.11
Low
$92.37
P. Close
$92.70
P/E
23.72
52W Low
$80.03
Fwd P/E
19.85
DailyIQ Est.
$110.62
Technical Score (1D)
68
BUY
News Sentiment
74
BULLISH
The most recent development is VLTO’s removal from the Russell 1000 Growth and Russell 3000 Growth indices, which forces index‑tracking funds to sell the stock and temporarily reduces passive exposure. This mechanical exclusion is unlikely to alter VLTO’s recurring revenue model or regulatory advantages, but it will tighten liquidity and widen bid‑ask spreads over the next few trading days. In response, active managers such as Artisan Mid‑Cap Value have begun adding VLTO shares, attracted by its high‑margin water and product‑quality solutions, which may offset some of the passive sell pressure. The same active accumulation was noted in Artisan Partners’ Q1 2026 investor letter, where VLTO was added to a mid‑cap value portfolio, indicating that value‑oriented investors see a potential upside amid market volatility. Meanwhile, discounted‑cash‑flow analysis projects a 42.8 % upside, yet market multiples imply the shares trade at a premium, creating a valuation split that could influence short‑term trading sentiment. The uncertainty surrounding whether VLTO can convert a larger share of revenue into stable cash flows without margin erosion or increased capital needs adds a risk factor that traders should monitor. Over the next 1–10 trading days, the pace of forced selling from passive funds and the speed of active accumulation will determine liquidity and spread dynamics. Traders should watch for any announcement of re‑inclusion in Russell indices, as that would reverse the forced sell pressure and potentially lift the stock. Additionally, upcoming earnings guidance and any updates on capital‑expenditure plans will be key to assessing whether the company can sustain its margin profile and support the projected upside.
Earnings Summary
Veralto Corporation (VLTO) provides essential water quality and product quality solutions through its Water Quality and Product Quality & Innovation segments, serving municipal utilities, food and beverage, and pharmaceutical industries worldwide. The company’s diversified portfolio of precision instruments, treatment technologies, and coding systems positions it within the industrial pollution & treatment controls sector. VLTO’s earnings record shows a consistent pattern of earnings beats: Q4 2024 EPS $0.95 versus $0.89168, revenue $1.345 billion; Q1 2025 EPS $0.95 versus $0.86637, revenue $1.332 billion; Q2 2025 EPS $0.93 versus $0.88393, revenue $1.371 billion; Q3 2025 EPS $0.99 versus $0.94846, revenue $1.404 billion; Q4 2025 EPS $1.04 versus $0.9976, revenue $1.396 billion; Q1 2026 EPS $1.07 versus $1.00556, revenue $1.422 billion. The most recent quarter (Q1 2026) shows a modest EPS increase from the prior quarter and a revenue rise from $1.396 billion in Q4 2025 to $1.422 billion in Q1 2026, indicating steady growth. Historically, VLTO has maintained a streak of earnings beats and revenue growth, with operating margins improving as the company leverages its high‑margin water and product‑quality solutions. Recent developments include the company’s removal from the Russell 1000 Growth and Russell 3000 Growth indices, which will force passive index‑tracking funds to sell shares, potentially tightening liquidity; however, active managers such as Artisan Mid‑Cap Value have added VLTO, offsetting some passive sell pressure. UBS’s modest downgrade of the price target to $98 from $101 reflects valuation concerns, while analysts project Q2 2026 revenue growth of 4‑6% and an operating margin improvement to 12%. Investors should watch for the Q2 2026 earnings release to confirm guidance, monitor any changes in capital‑expenditure plans, and observe whether the company can sustain its margin profile amid rising commodity costs, as these factors will be critical to evaluating the company’s long‑term trajectory and the impact of the recent index exclusion.

EPS

EstBeatMiss
$0.84$0.90$0.97$1.03$1.10Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.01 - -
Q1'26$1.01$1.07+6.4%
Q4'25$1.00$1.04+4.3%
Q3'25$0.95$0.99+4.4%
Q2'25$0.88$0.93+5.2%
Q1'25$0.87$0.95+9.7%

Revenue

EstBeatMiss
$1.3B$1.4B$1.4B$1.5B$1.5BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.5B - -
Q1'26$1.4B$1.4B+1.6%
Q4'25$1.4B$1.4B-2.6%
Q3'25 - $1.4B -
Q2'25 - $1.4B -
Q1'25 - $1.3B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

VLTO Stock Snapshot

VLTO is currently trading at $92.70, giving Veralto Corporation a market cap of 22.98B and a P/E ratio of 23.7. Today's range spans $92.37–$93.45, with shares opening at $92.72 and moving up $0.00 (0.0%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 74/100.

Over the past year VLTO has traded between $80.03 and $110.11 - the current price is +15.8% off the 52-week low and -15.8% from the high. 28 analysts cover the stock with a Buy consensus and a mean 12-month target of $108.06 (range $98.00–$132.00), implying upside of +16.6%.

Growth-oriented Industrials investors looking for technical confirmation find it in VLTO: BUY signal, 68/100 score, bullish sentiment at 74/100, price $92.70 (in the middle of its 52-week range). The current P/E ratio stands at 23.7. The 22.98B market cap is the sweet spot - big enough to absorb institutional sizing, small enough to move materially on conviction. Annual range: $80.03–$110.11.

What makes VLTO's BUY setup (68/100) particularly actionable at 22.98B in Industrials capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $92.70 (in the middle of its 52-week range in $80.03–$110.11), with sentiment running bullish at 74/100, the setup rewards conviction-sized positioning more than it does speculative small bets.