Veralto Corporation (VLTO), headquartered in Waltham, Massachusetts, provides water analytics, water treatment, marking and coding, and packaging and color services. Valued at $25.3 billion by market cap, the company offers product quality control systems and water purification equipment. 

Shares of this global leader in essential water and product quality solutions have underperformed the broader market this year. VLTO has gained 1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 9.8%. In 2025, VLTO stock is down 1.3%, compared to the SPX’s marginal dip over the same time frame.

Narrowing the focus, VLTO’s underperformance is also apparent compared to the VanEck Environmental Services ETF (EVX). The exchange-traded fund has gained about 10.3% over the past 52 weeks. Moreover, the ETF’s 7.6% returns on a YTD basis outshine the stock’s losses over the same time frame.

On Apr. 29, VLTO shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $0.95 surpassed Wall Street expectations of $0.87. The company’s revenue was $1.33 billion, topping Wall Street forecasts of $1.28 billion. The company expects full-year adjusted EPS in the range of $3.60 to $3.70.

For the current fiscal year, ending in December, analysts expect VLTO’s EPS to grow 4.5% to $3.70 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last three quarters.

Among the 15 analysts covering VLTO stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, and seven “Holds.”

This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy.” 

On May 6, Northcoast initiated coverage of VLTO with a “Buy” rating and $110 price target, implying a potential upside of 9.5% from current levels.

The mean price target of $109.71 represents a 9.2% premium to VLTO’s current price levels. The Street-high price target of $120 suggests an upside potential of 19.4%.