See our latest analysis for Fortive.
Fortive’s recent recovery has started to catch investors’ attention, with its 6% one-month share price return providing a welcomed shift after a tough stretch. Although the stock is still down significantly year to date, the steady 1-year total shareholder return of -8% hints that some confidence is returning, and short-term momentum could be building as sentiment improves.
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But with valuations still below analyst targets and recent growth still lackluster, is Fortive truly undervalued, or are today’s prices simply reflecting modest future prospects? Is there a real buying opportunity here, or is the market already accounting for what lies ahead?
Compared to the last close at $51.59, the narrative sets Fortive's fair value higher, signaling room for upside as confidence returns. It is this potential gap that’s driving curiosity from analysts and investors alike.
Fortive's increasing mix of recurring revenues, now at 50%, through expansion of software, services, and subscription models, including double-digit ARR growth at key brands like Fluke and SaaS momentum at AHS, is expected to drive improved revenue visibility and margin expansion in future periods. This supports both top-line growth and higher net margins.
Want the full growth story behind that valuation? See which bold revenue ambitions, margin forecasts, and business model shifts hold the key to this estimate. The numbers underlying this target might surprise you and could change the way you see Fortive's next chapter.
Result: Fair Value of $56.13 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ongoing trade tensions and the segment concentration following the spin-off could quickly challenge Fortive’s recovery if headwinds persist or worsen.
Find out about the key risks to this Fortive narrative.
If you’re seeking a fresh perspective or want to examine the numbers on your own terms, you can dig into the fundamentals and create your own narrative in just a few minutes. Do it your way
A great starting point for your Fortive research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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