Is Now The Time To Look At Buying Waters Corporation (NYSE:WAT)?

Waters Corporation (NYSE:WAT) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$339 at one point, and dropping to the lows of US$264. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Waters' current trading price of US$268 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Waters’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Waters

What's The Opportunity In Waters?

According to my valuation model, Waters seems to be fairly priced at around 2.16% above my intrinsic value, which means if you buy Waters today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $262.14, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Waters has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Waters look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Waters' earnings over the next few years are expected to increase by 27%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? WAT’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on WAT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Waters, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Waters you should know about.

If you are no longer interested in Waters, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.