Everett, Washington-based Fortive Corporation (FTV) designs, develops, manufactures, and services professional and engineered products, software, and services. Valued at $26.3 billion by market cap, the company focuses on professional instrumentation, automation, sensing, and transportation technologies. 

Shares of this industrial giant have underperformed the broader market considerably over the past year. FTV has gained 14.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, FTV’s stock rose 4.5%, compared to the SPX’s 24.7% rise on a YTD basis. 

Narrowing the focus, FTV’s underperformance is apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 32.9% over the past year. Moreover, the ETF’s 23.4% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.

On Oct. 30, FTV shares closed down more than 3% after reporting its Q3 results. Its adjusted EPS of $0.97 surpassed Wall Street expectations of $0.93. The company’s revenue was $1.5 billion, falling short of Wall Street forecasts of $1.6 billion. For Q4, FTV expects its adjusted EPS to be between $1.11 and $1.14, and expects revenue in the range of $1.6 billion to $1.7 billion. FTV expects full-year adjusted EPS to be between $3.84 to $3.87, and expects revenue to range from $6.2 billion to $6.3 billion.

For the current fiscal year, ending in December, analysts expect FTV’s EPS to grow 12.2% to $3.85 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 18 analysts covering FTV stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”

This configuration is less bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”

On Nov. 17, Wells Fargo & Company (WFC) analyst Joe O’Dea maintained a “Hold” rating on FTV with a price target of $77, implying a marginal potential upside from current levels.

The mean price target of $86.88 represents a 12.9% premium to FTV’s current price levels. The Street-high price target of $95 suggests an upside potential of 23.5%.