Is Waters Stock Underperforming the S&P 500?

Core Insights - Waters Corporation (WAT) has a market capitalization of $18.2 billion and is a leading provider of analytical instruments and workflow solutions, operating through two segments: Waters and TA [1][2] - The company serves various sectors including pharmaceuticals, life sciences, industrial, academic, and government, supporting critical applications in research, development, quality assurance, and regulatory compliance [2] Stock Performance - Shares of Waters have decreased 27.7% from their 52-week high of $423.56 and have fallen 9.7% over the past three months, underperforming the S&P 500 Index, which gained 10.9% in the same period [3][4] - Year-to-date, WAT stock is down 17.4%, lagging behind the S&P 500's 12.8% increase, and has dropped 8.1% over the past 52 weeks compared to the S&P 500's over 18% return [4] Financial Performance - In Q2 2025, Waters reported adjusted EPS of $2.95 and revenue of $771.3 million, but the stock fell 1.6% due to concerns over the acquisition of Becton Dickinson's bioscience and diagnostics unit, which is viewed as a high-priced deal with integration risks [5] - Academic and government sales declined by 3% amid uncertainty regarding U.S. research funding, although the company raised its annual EPS guidance to $12.95 - $13.05 [5] Competitive Landscape - Rival Quest Diagnostics Incorporated (DGX) has outperformed Waters, with DGX stock gaining 21.5% year-to-date and 17.9% over the past 52 weeks [6] - Despite the underperformance, analysts maintain a moderately optimistic outlook on WAT, with a consensus rating of "Moderate Buy" and a mean price target of $361.88, representing an 18.1% premium to current levels [6]