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Waters Introduces Symphony, Its New Data Pipeline Software

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IHI’s large-cap performers

Large-cap stocks of the iShares US Medical Devices (IHI) remained positive on June 2, 2016. Top gainers include Medtronic (MDT) and Edwards Lifesciences (EW), which rose 3.1% and 2.3%, respectively. Another top performer was Waters (WAT), which rose 0.9%. The company was in the news with the introduction of its new data pipeline software.

In a June 2, 2016, press release, Waters announced the introduction of “Symphony Data Pipeline software, a client-server application for laboratories acquiring and archiving large amounts of data. Symphony software automates the movement and transformation of large amounts of LC-MS data to speed up analytical workflows and save time, reduce human error, and liberate scientists from the mundane yet necessary tasks associated with managing data files.”

Waters closed at $139.76 that day and was trading above the 20-day moving average price of $135.20. The stock has risen 3.9% on a year-to-date basis. About 4% of the total outstanding shares are in a short position according to the latest available data.

Waters’ relative strength index (RSI) at 63 indicates that the stock is neither overbought nor oversold. As of June 2, 2016, the stock was trading at a 2016 forward PE (price-to-earnings) multiple of ~22.0x. Waters’ book value is $25.97 per share. At its current price, the stock is trading at a price-to-book value of ~5.40x.

Analyst recommendations and estimates

Analysts’ 12-month consensus estimate for a target price for Waters is $138.50. That’s 0.9% below its current price. However, Cantor Fitzgerald has recommended a target price of $163 for the stock. Four analysts have recommended a “buy” for the stock. Sixteen analysts have recommended a “hold,” and one analyst has recommended a “sell.” Waters has a weight of ~2.4% in IHI’s portfolio.

Large-cap underperformer

Abbott Laboratories (ABT) was the most underperforming IHI large-cap stock on June 2, 2016. It rose only 0.1%. There’s talk on Wall Street that Abbott Laboratories is looking to land a $5.8 billion deal with Alere (ALR), although there are corruption investigations in some overseas units of Alere.

Abbott closed at $39.53 on June 2 and was trading above the 20-day moving average. The stock has fallen 12% on a year-to-date basis. It has a weight of ~8.3% in IHI’s portfolio.

In the next part, we’ll take a look at NuVasive and its upward movement on high trading volumes.

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