These stocks may soar if the Fed lowers rates and indicates future cuts.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2025
0mins
Should l Buy WAT?
Source: CNBC
Interest Rate Sensitivity: Stocks that are particularly sensitive to declines in short-term interest rates, such as Blackstone and AvalonBay Communities, are expected to perform well if the Federal Reserve cuts rates again and signals further easing.
Impact of Fed's Actions: The Federal Reserve's decisions on its overnight benchmark rate directly influence short-term rates, with recent cuts leading to a significant decline in the 2-year Treasury yield, which has historically benefited certain S&P 500 stocks.
Top Performers Identified: A search for S&P 500 stocks that gained the most during months of falling rates revealed a list of 25 stocks, including homebuilder Lennar and rental property owner AvalonBay, which are likely to benefit from lower financing costs and increased demand.
Market Expectations: While there is uncertainty about the Fed's willingness to cut rates further in December, the market anticipates more easing ahead, which could lead to additional declines in short-term rates and further benefits for the identified stocks.
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Analyst Views on WAT
Wall Street analysts forecast WAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAT is 419.78 USD with a low forecast of 360.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 376.890
Low
360.00
Averages
419.78
High
480.00
Current: 376.890
Low
360.00
Averages
419.78
High
480.00
About WAT
Waters Corporation offers analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences. The Company's segments include Waters and TA. The Company primarily designs, manufactures, sells and services high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. The Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA Instruments (TA) product line. The Company is also a developer and supplier of advanced software-based products that interface with the Company’s instruments, as well as other manufacturers’ instruments. It operates directly in over 35 countries and has products available in more than 100 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Waters Corporation Reports Strong 2025 Financial Results
- Significant Sales Growth: Waters Corporation reported fourth-quarter sales of $932 million for 2025, reflecting a 7% increase year-over-year and a 6% rise in constant currency, indicating strong market performance that is expected to drive future revenue growth.
- Improved Profitability: The non-GAAP EPS for Q4 2025 was $4.53, up 10% year-over-year, while GAAP EPS was $3.77, slightly down from the previous year, yet overall profitability remains robust, showcasing effective cost control and operational efficiency.
- Diverse Market Performance: In 2025, sales in the pharmaceutical market grew by 9%, while the industrial market saw a 6% increase, and the academic and government market remained flat, highlighting strong demand in pharmaceuticals and industrial sectors, with a focus on these high-growth areas moving forward.
- Optimistic Outlook: The company anticipates organic revenue growth of 5.5% to 7.0% for 2026, with an expected contribution of approximately $3 billion from the acquisition of BD Biosciences and Diagnostic Solutions, demonstrating significant market expansion potential.
See More
Waters Corporation Q4 2025 Earnings Beat Expectations
- Strong Earnings Report: Waters Corporation reported a Q4 2025 non-GAAP EPS of $4.53, beating expectations by $0.02, with revenue of $932 million reflecting a 6.8% year-over-year increase, surpassing estimates by $3.28 million, indicating robust profitability and market demand.
- Mixed Market Performance: Sales in the pharmaceutical sector rose by 8%, and industrial sales also increased by 8%, while academic and government sales fell by 2%, highlighting strong performance in key markets but challenges in specific sectors.
- Geographic Sales Growth: Sales in Asia grew by 4%, with the Americas and Europe increasing by 4% and 13% respectively, particularly strong growth in Europe demonstrates the company's robust performance in global markets and the success of its regional differentiation strategy.
- Positive Future Outlook: The company anticipates organic revenue growth for 2026 to be between 5.5% and 7.0%, with total revenue expected to reach between $6.405 billion and $6.455 billion, reflecting confidence in future growth, especially following the merger with Becton, Dickinson & Company, with projected non-GAAP EPS growth of 8.9% to 10.4%.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Waters Corporation Shareholders Approve Merger Proposal
- Shareholder Vote Outcome: At today's Special Meeting, approximately 99% of shareholders voted in favor of issuing Waters common stock to Becton, Dickinson & Company shareholders, marking a significant milestone in the merger process that is expected to enhance the company's market position in life sciences and diagnostics.
- Transaction Completion Timeline: The transaction is anticipated to close on February 9, 2026, coinciding with Waters' release of its Q4 2025 financial results, indicating the company's readiness to rapidly integrate resources post-merger to drive growth and innovation.
- Tax Ruling Support: Becton, Dickinson & Company has received a favorable Private Letter Ruling from the IRS regarding the federal income tax consequences of the transaction, further ensuring a smooth merger process and mitigating potential financial risks.
- Regulatory Approvals Secured: Waters and Becton, Dickinson & Company have obtained all necessary regulatory approvals, indicating compliance with relevant laws and regulations, thereby laying a solid foundation for future business integration and synergy realization.
See More
Waters Corporation Shareholders Approve Merger Proposal
- Shareholder Vote Outcome: At today's Special Meeting, approximately 99% of shareholders present voted in favor of issuing Waters common stock to Becton, Dickinson shareholders, marking a significant milestone in the merger process that is expected to enhance the company's market position in life sciences.
- Transaction Closing Timeline: Waters anticipates closing the merger with BD on February 9, 2026, and the successful advancement of this transaction will open new avenues for growth and innovation, further solidifying its leadership in the industry.
- Tax Ruling Support: BD has received a favorable Private Letter Ruling from the IRS regarding the federal income tax consequences of the transaction, providing legal assurance and reducing potential financial risks associated with the merger.
- Financial Results Announcement: Waters will release its Q4 2025 financial results and hold a conference call on February 9, 2026, coinciding with the expected close of the merger, showcasing the company's future financial health and growth potential.
See More
BD Sets Spin-Off and Merger Date with Waters Corporation
- Spin-Off and Merger Timing: BD has announced that the record date for the spin-off will be set on February 5, 2026, with the merger with Waters expected to complete on February 9, 2026, potentially leading to significant shareholder value enhancement.
- Cash and Equity Distribution: BD will receive $4 billion in cash, while its shareholders will own 39.2% of the combined entity, a structure that is likely to strengthen BD's competitive position in the market.
- Tax Compliance Advantage: BD has received a favorable Private Letter Ruling from the IRS regarding the tax implications of the transaction, which mitigates potential financial risks for shareholders.
- Transaction Conditions and Market Reaction: The merger is subject to customary closing conditions, and BD's stock price is expected to adjust to reflect the business transfer, prompting investors to monitor equity changes post-transaction.
See More
Waters Corporation Reports Strong 2025 Financial Results
- Significant Sales Growth: Waters Corporation reported fourth-quarter sales of $932 million for 2025, reflecting a 7% increase year-over-year and a 6% rise in constant currency, indicating strong market performance that is expected to drive future revenue growth.
- Improved Profitability: The non-GAAP EPS for Q4 2025 was $4.53, up 10% year-over-year, while GAAP EPS was $3.77, slightly down from the previous year, yet overall profitability remains robust, showcasing effective cost control and operational efficiency.
- Diverse Market Performance: In 2025, sales in the pharmaceutical market grew by 9%, while the industrial market saw a 6% increase, and the academic and government market remained flat, highlighting strong demand in pharmaceuticals and industrial sectors, with a focus on these high-growth areas moving forward.
- Optimistic Outlook: The company anticipates organic revenue growth of 5.5% to 7.0% for 2026, with an expected contribution of approximately $3 billion from the acquisition of BD Biosciences and Diagnostic Solutions, demonstrating significant market expansion potential.
See More
Waters Corporation Q4 2025 Earnings Beat Expectations
- Strong Earnings Report: Waters Corporation reported a Q4 2025 non-GAAP EPS of $4.53, beating expectations by $0.02, with revenue of $932 million reflecting a 6.8% year-over-year increase, surpassing estimates by $3.28 million, indicating robust profitability and market demand.
- Mixed Market Performance: Sales in the pharmaceutical sector rose by 8%, and industrial sales also increased by 8%, while academic and government sales fell by 2%, highlighting strong performance in key markets but challenges in specific sectors.
- Geographic Sales Growth: Sales in Asia grew by 4%, with the Americas and Europe increasing by 4% and 13% respectively, particularly strong growth in Europe demonstrates the company's robust performance in global markets and the success of its regional differentiation strategy.
- Positive Future Outlook: The company anticipates organic revenue growth for 2026 to be between 5.5% and 7.0%, with total revenue expected to reach between $6.405 billion and $6.455 billion, reflecting confidence in future growth, especially following the merger with Becton, Dickinson & Company, with projected non-GAAP EPS growth of 8.9% to 10.4%.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Waters Corporation Shareholders Approve Merger Proposal
- Shareholder Vote Outcome: At today's Special Meeting, approximately 99% of shareholders voted in favor of issuing Waters common stock to Becton, Dickinson & Company shareholders, marking a significant milestone in the merger process that is expected to enhance the company's market position in life sciences and diagnostics.
- Transaction Completion Timeline: The transaction is anticipated to close on February 9, 2026, coinciding with Waters' release of its Q4 2025 financial results, indicating the company's readiness to rapidly integrate resources post-merger to drive growth and innovation.
- Tax Ruling Support: Becton, Dickinson & Company has received a favorable Private Letter Ruling from the IRS regarding the federal income tax consequences of the transaction, further ensuring a smooth merger process and mitigating potential financial risks.
- Regulatory Approvals Secured: Waters and Becton, Dickinson & Company have obtained all necessary regulatory approvals, indicating compliance with relevant laws and regulations, thereby laying a solid foundation for future business integration and synergy realization.
See More
Waters Corporation Shareholders Approve Merger Proposal
- Shareholder Vote Outcome: At today's Special Meeting, approximately 99% of shareholders present voted in favor of issuing Waters common stock to Becton, Dickinson shareholders, marking a significant milestone in the merger process that is expected to enhance the company's market position in life sciences.
- Transaction Closing Timeline: Waters anticipates closing the merger with BD on February 9, 2026, and the successful advancement of this transaction will open new avenues for growth and innovation, further solidifying its leadership in the industry.
- Tax Ruling Support: BD has received a favorable Private Letter Ruling from the IRS regarding the federal income tax consequences of the transaction, providing legal assurance and reducing potential financial risks associated with the merger.
- Financial Results Announcement: Waters will release its Q4 2025 financial results and hold a conference call on February 9, 2026, coinciding with the expected close of the merger, showcasing the company's future financial health and growth potential.
See More
BD Sets Spin-Off and Merger Date with Waters Corporation
- Spin-Off and Merger Timing: BD has announced that the record date for the spin-off will be set on February 5, 2026, with the merger with Waters expected to complete on February 9, 2026, potentially leading to significant shareholder value enhancement.
- Cash and Equity Distribution: BD will receive $4 billion in cash, while its shareholders will own 39.2% of the combined entity, a structure that is likely to strengthen BD's competitive position in the market.
- Tax Compliance Advantage: BD has received a favorable Private Letter Ruling from the IRS regarding the tax implications of the transaction, which mitigates potential financial risks for shareholders.
- Transaction Conditions and Market Reaction: The merger is subject to customary closing conditions, and BD's stock price is expected to adjust to reflect the business transfer, prompting investors to monitor equity changes post-transaction.
See More
