Since June 2025, Veralto has been in a holding pattern, posting a small loss of 1.6% while floating around $98.41. The stock also fell short of the S&P 500’s 13.4% gain during that period.
Is there a buying opportunity in Veralto, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free for active Edge members.
Why Is Veralto Not Exciting?
We're swiping left on Veralto for now. Here are two reasons why VLTO doesn't excite us and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Veralto’s sales grew at a sluggish 4.4% compounded annual growth rate over the last four years. This fell short of our benchmark for the industrials sector.
2. Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Veralto’s revenue to rise by 5.4%, close to its 4.4% annualized growth for the past four years. This projection is underwhelming and indicates its newer products and services will not catalyze better top-line performance yet.
Final Judgment
Veralto isn’t a terrible business, but it isn’t one of our picks. With its shares underperforming the market lately, the stock trades at 24.3× forward P/E (or $98.41 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are superior stocks to buy right now. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle.
Stocks We Like More Than Veralto
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
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