10 Best Young Stocks To Buy Now

8. Veralto Corp. (NYSE:VLTO)

Market Cap as of September 26: $27.40 billion

Number of Hedge Fund Holders: 42

Veralto Corp. (NYSE:VLTO) is a global leader in providing essential solutions for water quality, marking and coding, and packaging and color management. The company operates through 2 main segments: Water Quality and Product Quality and Innovation, where the WQ segment offers precision instrumentation and water treatment technologies, while the PQI segment provides solutions for inline printing, marking and coding, design software, and color management, with the help of ~16,000 associates globally.

The company’s strong performance in Q2 is attributed to increased rigor in deploying its VES system. This has driven growth, expanded margins, and improved overall execution. Revenue for the period was $1.29 billion, with core sales growth of 3.8% year-over-year. Around 85% of these sales are related to water, food, and essential goods.

The WQ segment sales were up 2.8% on a year-over-year basis, while the PQI segment delivered sales rose 2.7%. Overall recurring revenue grew mid-single digits year-over-year and comprised 62% of the total sales.

It showcased its latest innovations at Drupa, including the S2 platform. This cloud-based platform integrates Esko applications, providing customers with access to live data and AI-powered tools.

The company disclosed its greenhouse gas emissions and set a reduction goal of 54.6% by 2033. It’s also working to improve its supply chain sustainability through EcoVadis certification. Veralto Corp.’s (NYSE:VLTO) focus on sustainability is driven by its commitment to preserving the planet and its investment in its people, demonstrating both the durability of its businesses and its potential to grow further.

Aristotle Capital Value Equity Strategy stated the following regarding Veralto Corporation (NYSE:VLTO) in its Q2 2024 investor letter:

“In the fourth quarter of 2023, we received shares of the water and product quality company Veralto Corporation (NYSE:VLTO) when Danaher, a current Value Equity holding, spun off the business. After further assessing the now independently operated Veralto, we decided to exit our position. We believe our other holdings within the water value chain, including Xylem, American Water Works (our most recent purchase) and to some extent Ecolab, are more optimal investments.”