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Here's Why Waters (WAT) is a Strong Growth Stock
WatersWaters(US:WAT) ZACKSยท2025-06-13 14:46

Group 1: Zacks Style Scores Overview - Zacks Style Scores are indicators that help investors select stocks with the best chances of outperforming the market over the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][9] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 2: Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Group 3: Growth Score - The Growth Score assesses a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Group 4: Momentum Score - The Momentum Score focuses on trends in stock price or earnings outlook, helping investors identify optimal times to build positions based on price changes and earnings estimate shifts [5] Group 5: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum [6] Group 6: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Group 7: Company Spotlight - Waters Corp. - Waters Corp., based in Milford, MA, is an analytical instrument manufacturer providing sustainable products for laboratory organizations, specializing in mass spectrometry and liquid chromatography [11] - Waters has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Growth Style Score of A, indicating a year-over-year earnings growth forecast of 8.6% for the current fiscal year [11][12] - Recent upward revisions in earnings estimates by four analysts for fiscal 2025 have increased the Zacks Consensus Estimate by $0.04 to $12.88 per share, with an average earnings surprise of 4% [12]