Last Updated: 08 Nov 2024
Executive Summary
Fortive Corp (FTV) is a diversified industrial technology conglomerate with a market capitalization of $25.68 billion. The company has a strong financial position with an EBITDA of $1.69 billion and a net income margin of 14.4%. FTV's stock is currently trading at $74.01, which is below its 52-week high of $86.91. However, the stock has outperformed the S&P 500 index over the past year, and analysts are bullish on the company's long-term prospects.
Company Overview
Fortive Corp is headquartered in Everett, Washington, and has operations in over 50 countries. The company's products and services are used in a variety of industries, including healthcare, life sciences, industrial, and technology. Fortive Corp has a portfolio of well-known brands, including Fluke, Tektronix, and Gilbarco Veeder-Root.
Fundamental Analysis
Fortive Corp has a strong financial position. The company has a healthy balance sheet with $2.5 billion in cash and equivalents and $3.2 billion in debt. Fortive Corp also has a strong track record of profitability. The company has generated positive net income for the past 10 years, and its net income margin has averaged 14.4% over that period.
Fortive Corp's revenue growth has been driven by a combination of organic growth and acquisitions. The company has made a number of acquisitions in recent years, including the acquisition of Fluke Corporation in 2016 and the acquisition of Tektronix in 2017. These acquisitions have helped Fortive Corp to expand its product portfolio and enter new markets.
Technical Analysis
Fortive Corp's stock price has been in a downtrend since the beginning of the year. The stock has fallen from a high of $86.91 in January to a low of $74.01 in July. However, the stock has started to rebound in recent weeks, and it is now trading above its 50-day moving average.
The technical indicators are mixed. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
Fortive Corp's stock is expected to continue to trade in a range in the near term. The stock is likely to face resistance at the $80 level, and it is likely to find support at the $70 level. However, the stock could break out of this range if the company reports strong earnings or if the overall market sentiment improves.
Long Term Outlook
Fortive Corp is a well-positioned company with a strong portfolio of products and services. The company is expected to continue to grow its revenue and earnings in the long term. The stock is currently trading at a discount to its intrinsic value, and it is a good long-term investment for investors who are looking for exposure to the industrial technology sector.
Analyst Recommendations
Analysts are bullish on Fortive Corp's long-term prospects. The average analyst rating for the stock is "buy," and the average analyst target price is $85.57.
