VLTO · VERALTO CORP · Top AI ETF

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Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications under the Hach, Trojan Technologies, ChemTreat, and other brands.

Close · 3M

-16.51%

Held by 0 AI ETFs

None of the tracked AI ETFs currently hold this name.

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals1

Win rate0% (0/1)

Avg buy return-6.35%

AIEQno longer held2 signals

AIEQ · Exit · 1d

VLTO's ROE of 33.39% and moderate 5.95% revenue growth initially aligned with AIEQ's fundamental-driven selection process, despite a PER of 21.23 and PBR of 7.98. However, the period leading up to its removal saw significant price deterioration, with VLTO experiencing a -9.6% 30-day return and currently trading at its 52-week low of $82.23. This sustained negative price action likely generated adverse sentiment signals from the news, filings, transcripts, analyst notes, and social posts ingested by IBM Watson NLP, impacting VLTO's daily ranking for AIEQ. EquBot's risk overlay, operating within a fund known for its high turnover and daily rebalancing, then acted on these declining scores, prompting the full removal of VLTO from AIEQ's portfolio by May 30, 2026.

weight 0.200% → 0 (exited)·stock down 8.1% in the 30 days before

May 30·entry $83.60·now $82.64

-1.15%

since May 30

AIEQ · Weight increase · 2d

The AI likely consistently increased VLTO's weight, especially after a brief dip, due to its exceptional 34.47% Return on Equity, which signals robust profitability and efficient capital utilization despite its moderate revenue growth and higher valuation multiples. For retail investors, this demonstrates that AI-managed funds often prioritize strong fundamental profitability metrics like ROE as key quality indicators, prompting sustained investment even when other metrics might seem less attractive, and suggests paying close attention to such efficiency.

weight 0.170% → 0.220% (+0.050 pp)·stock down 0.5% in the 30 days before

May 3·entry $88.24·now $82.64Fresh

-6.35%

since May 3

PQUSno longer held1 signal

PQUS · Exit · 1d

VLTO's weight in PQUS remained at 0.0700% for a full week before its complete removal from the portfolio on May 22nd, 2026. This sudden, stepped divestment, rather than a gradual unwind, is consistent with Pictet Asset Management's AI ranking system performing periodic rebalances. Operating within a US large-cap universe, the AI likely re-evaluated VLTO, an Industrials sector company, as it traded near its 52-week low at $85.96. The stock's negative 90-day return of 15.5% and 1-year return of 11.0% likely contributed to its re-ranking. The fund, which adopts a style of measured turnover, thus made a decisive cut despite VLTO's 33.39% ROE.

weight 0.070% → 0 (exited)·stock down 2.2% in the 30 days before

May 22·entry $86.80·now $82.64

-4.79%

since May 22

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 31

The AI ETFs, AIEQ and PQUS, have recently exited Veralto, indicating a bearish or neutral sentiment as the company is not currently held by any tracked AI ETF. This aligns with the framework's 'Fail' verdict, as the inability to sufficiently assess management, financial health, and margin of safety prevents a conclusive positive investment case, similar to an investor choosing not to hold the stock.

Circle of CompetenceThe nature of environmental and facilities services often involves stable, recurring revenue streams, allowing for reasonable projection of unit economics and cash flows over a ten-year horizon.
Economic MoatCompanies in essential environmental and facilities services can benefit from high switching costs, strong brand reputation for reliability, and specialized regulatory expertise.
ManagementThe provided financial data does not offer sufficient information to assess management's candor, capital allocation discipline, or skin in the game.
Financial HealthWhile the reported current ROE of 33.39% is strong, the absence of 10-year ROE history, operating margin trends, or debt structure prevents a comprehensive assessment of financial health.
Margin of SafetyWithout a conservative estimate of intrinsic value, it is not possible to determine if the current price offers a sufficient margin of safety.

Veralto Corp operates within a predictable circle of competence and appears to possess identifiable economic moats that protect its earning power. However, the analysis is critically incomplete due to insufficient data for assessing management quality, comprehensive financial health metrics over a decade, and a conservative estimate of intrinsic value. Consequently, the framework cannot conclude that Veralto meets all stringent criteria for a value investment, resulting in a 'Fail' verdict.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.