Stock spinoffs are one of the hottest trades going this year. How to participate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2024
0mins
Source: CNBC
- Spinoff Stocks Performance: Spinoff stocks from larger corporate parents have been consistent winners in 2024, with GE Vernova, Esab, Sylvamo, and Veralto among the notable performers.
- Investment Opportunities: Investors can capitalize on spinoffs to unlock potentially underappreciated value, with 19 more companies scheduled to complete spinoffs this year.
- Market Trends: Spinoffs tend to outperform parent companies, with higher valuations indicating better quality according to Wolfe Research.
- Upcoming Spinoffs: Health care companies like Baxter International and Edwards Lifesciences are set to spin off businesses in the second half of 2024.
- Future Plans: Unilever plans to spin off its ice cream business in the fourth quarter, while U.S.-traded shares of Unilever are up 8.5% this year.
Analyst Views on VLTO
Wall Street analysts forecast VLTO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLTO is 110.14 USD with a low forecast of 100.00 USD and a high forecast of 121.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 101.480
Low
100.00
Averages
110.14
High
121.00
Current: 101.480
Low
100.00
Averages
110.14
High
121.00
About VLTO
Veralto Corporation provides essential technology solutions that monitor, enhance and protect key resources around the globe. Its segments include Water Quality (WQ) and Product Quality & Innovation (PQI). WQ segment provides portfolios of water analytics and differentiated water treatment solutions that enable the delivery of safe drinking water by public and private utilities. Under its Hach, Trojan Technologies, ChemTreat and other globally recognized WQ brands, it provides precision instrumentation and advanced water treatment technologies that its customers rely on to measure, analyze and treat water in residential, commercial, municipal, industrial, research and natural resource applications. PQI segment provides a set of essential solutions for brand owners and consumer packaged goods companies. Under its Videojet, Linx, Esko, X-Rite, Pantone and other globally recognized PQI brands, it provides marking and coding, and packaging and color instrumentation and related consumables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
