Is Waters Corporation Stock Outperforming the Nasdaq?

Milford, Massachusetts-based Waters Corporation (WAT) is a leader in analytical instruments, separations technologies, and scientific software. Valued at a market cap of $23.6 billion, the company’s products and solutions support research, quality testing, and regulatory compliance across pharmaceutical, life sciences, materials, food safety, environmental, and industrial laboratories.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WAT fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the diagnostics & research industry. The company is renowned for its deep scientific expertise and long-standing leadership in liquid chromatography and mass spectrometry, technologies that are essential for highly precise chemical analysis.

This healthcare company is currently trading 6.5% below its 52-week high of $423.56, reached on Jan. 30. Shares of WAT have rallied 35.1% over the past three months, considerably outperforming the Nasdaq Composite’s ($NASX) 8.1% rise during the same time frame.

 However, in the longer term, WAT has gained 1.4% over the past 52 weeks, lagging behind NASX’s 20.2% uptick over the same time frame. Moreover, on a YTD basis, shares of WAT are up 6.7%, compared to NASX’s 22.5% return. 

To confirm its recent bullish trend, WAT has been trading above its 200-day moving average since mid-October, and has remained above its 50-day moving average since late September. 

On Nov. 4, shares of WAT surged 6.3% after the company delivered strong Q3 results, which handily exceeded analyst estimates.  Primarily due to solid growth in its pharmaceutical segment, the company’s net sales improved 8% year-over-year to $800 million, surpassing consensus estimates by 2.6%. Moreover, its adjusted EPS climbed 16% from the same period last year to $3.40, topping analyst expectations of $3.21. Additionally, WAT raised its fiscal 2025 sales and adjusted EPS guidance, further bolstering investor confidence. 

WAT has slightly outpaced its rival, Agilent Technologies, Inc.’s (A) 1.1% rise over the past 52 weeks. However, it has marginally lagged behind A’s 6.8% return on a YTD basis.  

Given WAT’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $404.73 suggests a 2.3% premium to its current price levels.