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Fortive Stock (FTV) Hits 52-Week Low After Ralliant Spin-Off—Should You Buy the Dip?

Fortive Stock (FTV) Hits 52-Week Low After Ralliant Spin-Off—Should You Buy the Dip?

Business Insider20 hours ago
Fortive Corporation (FTV) shares plunged to a fresh 52-week low following the company's completed spin-off of its Precision Technologies segment into the newly formed Ralliant Corporation. The market's reaction was swift and sharp, raising concerns among investors about Fortive's near-term outlook.
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Despite near-term headwinds, Wall Street remains optimistic about the company's long-term prospects, with analysts projecting over 50% upside from current levels. With Fortive stock now trading at its lowest level in a year, the recent dip may present a favorable entry point for investors.
Investor Sentiment Turns Negative on FTV Stock
The industrial conglomerate confirmed the successful completion of its 100% spin-off of Ralliant, which now trades independently on the NYSE under the ticker symbol RAL. As part of the transaction, Fortive shareholders received one Ralliant share for every three Fortive shares held as of the June 16, 2025, record date.
Although Fortive's spin-off was widely anticipated, the stock declined after the company warned of unexpected revenue pressures. The company blamed the softer performance on rising tariff-related pricing pressures and weaker customer demand, driven by uncertainty in trade, healthcare, and government spending.
As a result, Fortive now expects second-quarter revenue and core revenue to be flat or slightly negative. Still, it maintains its forecast for adjusted EPS to land near the midpoint of its prior guidance.
What's Next for Investors?
The spin-off was structured to be tax-free for Fortive shareholders and anyone entitled to partial shares received cash instead. Through this spin-off, Fortive kept its higher-margin Intelligent Operating Solutions and Advanced Healthcare Solutions segments. Meanwhile, Ralliant took over the more capital-intensive Precision Technologies business.
For investors, the spin-off creates clearer value propositions, with Fortive focusing on higher-margin, recurring-revenue segments. This strategic clarity could enhance long-term shareholder value.
Is Fortive a Good Stock to Buy?
According to TipRanks' consensus, FTV stock has a Moderate Buy consensus rating based on eight Buys and six Holds assigned in the last three months. At $80.58, the average Fortive share price target implies a 55% upside potential.
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