Milford, Massachusetts-based Waters Corporation (WAT) provides analytical workflow solutions. With a market cap of $17.8 billion, the company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans.

Shares of this global leader in analytical instrumentation have underperformed the broader market over the past year. WAT has declined 12% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.1%. In 2025, WAT stock is down 20.2%, compared to the SPX’s 9.9% rise on a YTD basis.

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Narrowing the focus, WAT’s underperformance is also apparent compared to the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has declined about 11.8% over the past year. Moreover, the ETF’s marginal dip on a YTD basis outshines the stock’s double-digit losses over the same time frame.

On Aug. 4, WAT shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $2.95 surpassed Wall Street expectations of $2.93. The company’s revenue was $771.3 million, topping Wall Street forecasts of $744.3 million. The company expects full-year adjusted EPS in the range of $12.95 to $13.05.

For the current fiscal year, ending in December, analysts expect WAT’s EPS to grow 9.4% to $12.98 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 18 analysts covering WAT stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, and 12 “Holds.”

This configuration is less bullish than two months ago, with seven analysts suggesting a “Strong Buy.”

On Aug. 18, Paul Knight from KeyBanc maintained a “Buy” rating on WAT with a price target of $460, implying a potential upside of 55.3% from current levels.

The mean price target of $362.35 represents a 22.4% premium to WAT’s current price levels. The Street-high price target of $465 suggests an ambitious upside potential of 57%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com