With a market cap of $26.7 billion, Veralto Corporation (VLTO) operates in the technology sector, providing water analytics, treatment, and packaging solutions globally. The Waltham, Massachusetts-based company offers products and services across its Water Quality (WQ) and Product Quality & Innovation (PQI) segments, serving industries such as municipal utilities, food and beverage, and pharmaceuticals.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Veralto fits this criterion perfectly, exceeding the mark. Veralto is distinguished for its focus on safeguarding vital resources by offering innovative water quality and product quality solutions that enhance sustainability, safety, and traceability across global industries.

The water and product quality services provider pulled back marginally from its YTD highs of $112.77 set on Aug. 29.  Shares of VLTO are down marginally over the past month, underperforming the broader S&P 500 Index's ($SPX) 1.9% rise in the same period.

However, over the past three months, shares of Veralto have surged 8.2%, outpacing SPX's 4.1% increase. 

Since mid-July, VLTO has been in a bullish trend, trading above its 20-day and 50-day moving averages. However, since Sep. 9, it dipped below its 20-day moving average.

Veralto has experienced strong investor optimism over the past three months due to its essential technologies in water quality and product innovation sectors, combined with the spinoff from Danaher, which has driven a surge in demand for its stock despite ongoing regulatory challenges​. Moreover, the stock surged 5.3% following its Q2 earnings release on Jul. 25 as the company reported adjusted EPS of $0.85 per share, surpassing Wall Street's expectation. The company raised its 2024 adjusted EPS guidance to a range of $3.37 to $3.45 and highlighted a strong revenue of $1.3 billion, alongside positive growth in both water quality and packaging markets.

The stock’s rival, GFL Environmental Inc. (GFL), has seen a 4.5% decline over the past month and a 3.4% rise over the past three months, lagging behind VLTO's performances in both periods. 

Despite VLTO’s outperformance relative to SPX over the past three months, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 13 analysts covering it, and it is currently trading below the mean price target of $111.83.

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