WAT Stock Analysis — Waters Corporation
Sector: Healthcare
AI Verdict
Waters trades at 23.8x next year's earnings while analysts expect EPS to nearly double—if its customer lock-in holds, that's cheap for the growth on offer, but any slip in execution could quickly erase the premium.
Competitive Moat
Waters specializes in high-precision liquid chromatography and mass spectrometry instruments used in life sciences, pharma, and food safety, where switching costs and regulatory validation create customer lock-in. Its moat comes from deep integration into customers’ workflows and a reputation for reliability in regulated environments.
Summary
Waters is on watch because analysts expect an 87.2% jump in earnings next year, far outpacing typical healthcare peers.
Where It Stands
With a 1-year return of just 1.63%, RSI at 59.3 (neutral), and a forward P/E of 23.8x versus the healthcare median of 22x, the stock is pricing in a big earnings rebound.
Key Metrics
- RSI: 59.3 — Neutral
- Trailing P/E: 44.6x
- Forward P/E: 23.8x
- PEG Ratio: 0.95
- Earnings Growth: +0.9%
- Revenue Growth: +0.1%
- Market Cap: $34.7B
- 1-Year Return: 1.63%
- 52-Week High: $414.15
- 52-Week Low: $275.05
Analyst Consensus
17 Buy · 12 Hold · 0 Sell (29 analysts)
Bull Case
Forward EPS growth of 87.2% makes the 23.8x forward P/E look cheap for the expected jump in profitability.
Bear Case
If the P/E reverts from 23.8x to the sector median of 22x, the stock could see a 7.6% valuation drop even if earnings meet expectations.
Catalyst to Watch
Quarterly earnings beats or misses that confirm or undermine the 87.2% EPS growth consensus will drive the next move.