VLTO Should I Buy
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Veralto Corp (VLTO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The stock is trading at a discount compared to its historical average, hedge funds are significantly increasing their positions, and the company has shown solid financial growth in the latest quarter. While insider selling and mixed analyst ratings present some concerns, the current entry price of $89.62 is attractive given the company's high gross margins and stable recurring revenue.
The MACD histogram is positive and expanding, indicating bullish momentum. RSI is neutral at 59.69, and moving averages are converging, suggesting no strong directional bias. Key support is at $85.703, and resistance is at $90.035, with the stock trading near resistance in pre-market at $89.62.
Hedge funds are significantly increasing their positions, with a 489.78% increase in buying over the last quarter. The company has strong recurring revenue and high gross margins, as noted by analysts. The stock is trading at a 21% discount to its historical average, making it an attractive entry point.
Insiders have increased selling activity by 1309.17% over the last month. Analyst ratings are mixed, with some lowering price targets due to concerns about growth and valuation. Gross margin declined slightly YoY.
In Q4 2025, Veralto's revenue increased by 3.79% YoY to $1.396 billion. Net income rose by 11.89% YoY to $254 million, and EPS grew by 10.99% YoY to $1.01. However, gross margin dropped slightly by 0.40% YoY to 59.31%.
Analyst ratings are mixed. Jefferies upgraded the stock to Buy with a price target of $110, citing high-quality operations and attractive valuation. However, UBS, Citi, and others maintain Neutral ratings, with price targets ranging from $99 to $108, reflecting concerns about growth sustainability and recent M&A activities.
