Avantor has gotten torched over the last six months - since September 2025, its stock price has dropped 38% to a new 52-week low of $7.88 per share. This may have investors wondering how to approach the situation.

Is there a buying opportunity in Avantor, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think Avantor Will Underperform?

Despite the more favorable entry price, we're cautious about Avantor. Here are three reasons why AVTR doesn't excite us and a stock we'd rather own.

1. Core Business Falling Behind as Demand Declines

Investors interested in Research Tools & Consumables companies should track organic revenue in addition to reported revenue. This metric gives visibility into Avantor’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, Avantor’s organic revenue averaged 2.3% year-on-year declines. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Avantor might have to lean into acquisitions to grow, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus).

2. Projected Revenue Growth Shows Limited Upside

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Avantor’s revenue to stall. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.

3. EPS Growth Has Stalled

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Avantor’s EPS was flat over the last five years, just like its revenue. This performance was underwhelming across the board.

Final Judgment

We see the value of companies making people healthier, but in the case of Avantor, we’re out. Following the recent decline, the stock trades at 10× forward P/E (or $7.88 per share). This valuation multiple is fair, but we don’t have much confidence in the company. There are better investments elsewhere. Let us point you toward a dominant Aerospace business that has perfected its M&A strategy.

Stocks We Would Buy Instead of Avantor

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