WAT Should I Buy
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Waters Corp (WAT) is not a strong buy at this moment for a beginner investor with a long-term strategy. The stock is currently in a bearish trend, with hedge funds selling heavily and no significant insider or congress trading activity to indicate confidence. While the company's revenue has grown, its net income and EPS have declined, and analysts have recently lowered price targets. Options data suggests bearish sentiment with a high put-call ratio. Given these factors, it is better to hold off on buying until more positive catalysts emerge or the stock shows signs of recovery.
The technical indicators suggest a bearish trend. The MACD is positive but contracting, RSI is neutral at 27.313, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 304.691 and S2 at 296.502, indicating further downside risk.
Gross margin improved to 59.79%, up 1.82% YoY. Analysts like Citi and Barclays have Buy and Overweight ratings, citing potential synergies from the BDX Life Sciences acquisition.
Net income and EPS declined YoY by -2.67% and -2.84%, respectively. Hedge funds are selling heavily, with a 125.80% increase in selling activity. Analysts have broadly lowered price targets, citing weak Q4 results and cautious guidance. Options data shows bearish sentiment.
In Q4 2025, Waters Corp reported revenue growth of 6.83% YoY to $932.36M. However, net income dropped by -2.67% YoY to $225.21M, and EPS fell by -2.84% YoY to 3.76. Gross margin improved slightly to 59.79%, up 1.82% YoY.
Analysts have mixed ratings. While some firms like Citi and Barclays have Buy and Overweight ratings with price targets of $425 and $400, respectively, most analysts have lowered price targets, citing weak Q4 results and cautious guidance. The average price target is now significantly lower than previous levels.
