Waters Corp (WAT) Stock Analysis
Verdict: HOLD
Q1'26 earnings beat signals a recovery in pharma instrument spending, but the 50x P/E multiple demands flawless execution to justify entry.
Investment score: 64/100
Analysis as of
Is Waters Corp stock worth reviewing? The TradeMates thesis
The TradeMates model views Waters as a high-quality asset currently priced for perfection after a massive post-earnings rally. While fundamental recovery is evident, the valuation gap vs peers limits near-term upside.
7-factor investment score
- Valuation: 42/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 70/100 (weight 10%)
- Analyst Consensus: 78/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Waters Corp opportunities and risks
What speaks for WAT
- Pharma R&D Spending Rebound
What speaks against WAT
- Prohibitive Valuation Premium vs Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WAT | 62.7x | 5.9x | 29.3x | 55.0% | 11.9% | 1.2% |
| TMO | 25.3x | 3.8x | 19.1x | 39.4% | 15.2% | 3.9% |
| DHR | 33.5x | 5.0x | 20.4x | 60.7% | 14.9% | 4.3% |
| A | 25.8x | 4.7x | 19.1x | 52.2% | 18.3% | 3.0% |
| IQV | 21.5x | 1.8x | 8.5x | 26.1% | 8.3% | 8.9% |
| MTD | 30.5x | 6.6x | 23.2x | 57.5% | 21.6% | 3.2% |
| Peer median | 25.8x | 4.7x | 19.1x | 52.2% | 15.2% | 3.9% |
Frequently asked questions about Waters Corp (WAT)
Is WAT stock a good investment?
The TradeMates model rates Waters Corp as HOLD with an investment score of 64/100. The TradeMates model views Waters as a high-quality asset currently priced for perfection after a massive post-earnings rally. While fundamental recovery is evident, the valuation gap vs peers limits near-term upside. This is algorithmic model output, not personal investment advice.
Is WAT stock a buy?
The TradeMates model verdict for WAT is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.