WAT Should I Buy
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Waters Corp (WAT) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock lacks clear positive momentum in technical indicators, and hedge funds are selling. Although the company has a solid gross margin and revenue growth, the recent dip in net income and EPS, coupled with mixed analyst ratings and reduced price targets, suggests caution. Additionally, no significant news or political trading activity supports a strong buy decision.
The MACD is positive but contracting, indicating weakening bullish momentum. RSI is neutral at 50.398, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 296.143, with resistance at 305.888 and support at 286.399. Overall, technical indicators do not suggest a strong buy signal.
Gross margin improved to 59.79%, up 1.82% YoY. Citi and Barclays have optimistic ratings with price targets of $425 and $400, respectively, citing potential synergies from the BDX acquisition.
Net income and EPS dropped by -2.67% and -2.84% YoY, respectively. Hedge funds are selling, with a 125.80% increase in selling activity last quarter. Analysts have broadly reduced price targets, citing weak Q4 results and concerns about the BDX deal. No recent news or political trading data to support a bullish 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 to 59.79%, up 1.82% YoY, indicating operational efficiency despite declining profitability.
Analyst ratings are mixed, with some firms like Citi and Barclays optimistic about the BDX acquisition's synergies, while others like Deutsche Bank and Morgan Stanley remain cautious, lowering price targets and maintaining Hold or Neutral ratings. The consensus reflects uncertainty around the company's growth trajectory and deal execution.
