Waters stock (NYSE: WAT), an analytical laboratory instrument and software company, trades at $266 per share, 7% below the level seen in March 2021. WAT stock was trading at around $331 in early June 2022, just before the Fed started increasing rates, and is now 20% below that level, compared to 13% gains for the S&P 500 during this period. The recent stock decline can partly be attributed to weak demand in China and the company’s lowering of its full-year 2023 guidance.
Interestingly, WAT stock has had a Sharpe Ratio of 0.4 since early 2017, lower than 0.5 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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