5 Best Scientific Instruments Stocks To Buy

4. Waters Corporation (NYSE:WAT)

Number of Hedge Fund Holders: 41

Waters Corporation (NYSE:WAT) is a specialty measurement company that offers analytical workflow solutions across Asia, the Americas, and Europe. The company provides high and ultra-performance liquid chromatography and mass spectrometry technology systems, along with consumable products and post-warranty service plans. Waters Corporation (NYSE:WAT) is one of the best scientific instruments stocks to invest in. 

On February 15, Waters Corporation (NYSE:WAT) reported a Q4 non-GAAP EPS of $3.84 and a revenue of $859 million, outperforming Wall Street estimates by $0.10 and $26.15 million, respectively. 

Barclays on April 4 maintained an Overweight rating on Waters Corporation (NYSE:WAT) but reduced the price target on the shares to $350 from $385. According to the firm’s research note, the macro environment remains a significant factor as the life science tools and diagnostics sector prepares for Q1 results. Barclays expects results to be consistent with the Q1 guidance, which is relatively modest, and has not identified any significant risks at this stage. Despite this, the firm remains optimistic about Waters Corporation (NYSE:WAT)’s prospects and anticipates some improvement in Q2, leading to a more favorable setup for the second half of the year.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Waters Corporation (NYSE:WAT), with collective stakes worth $2.3 billion. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 3.6 million shares worth $1.26 billion. 

Diamond Hill Capital made the following comment about Waters Corporation (NYSE:WAT) in its Q3 2022 investor letter:

“Other top contributors included our long position in HCA Healthcare and our short position in Waters Corporation (NYSE:WAT). Healthcare facilities operator HCA outperformed low expectations as it reported results showing some of its cost pressures were easing. In Q3, life science tools company Waters reported solid revenue growth but weak margin expansion, pressuring shares. Our view is the company, with already industry-leading margins, will struggle to drive additional margin expansion.”