What Happened?
Shares of healthcare solutions provider Solventum (NYSE:SOLV) fell 6.5% in the morning session after the company reported weak fourth quarter results: its full-year EPS guidance missed. On the other hand, Solventum narrowly topped analysts' organic revenue expectations, with organic sales rising 2.3% year-on-year, led by growth in its MedSurg and Dental Solutions segments. Looking ahead, the company expects 1% to 2% organic revenue growth in 2025 but will update its guidance following the sale of its Purification & Filtration segment. Overall, we think this was a mixed quarter. The areas below expectations seem to be driving the move.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Solventum? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Solventum’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Solventum is up 20% since the beginning of the year, and at $79.14 per share, it is trading close to its 52-week high of $84.04 from February 2025. Investors who bought $1,000 worth of Solventum’s shares at the IPO in March 2024 would now be looking at an investment worth $989.25.
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