Ralliant Corp (RAL)
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$63.46+1.15%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Ralliant grows revenue about 7% yearly with raised guidance near $2.2 billion in 2026. Profit margins are strong, guided at 20%. The company is buying back $100 million in shares, showing capital discipline. Recent earnings beat and stable management support steady progress.
Ralliant is still loss-making and faces elevated risk. Growth could slow below 7% if demand weakens. Profit margins might compress if costs rise. The share price correction warns of possible execution risks.
The price is about 1% below our fair value near $69, slightly above the Street median of $65. Analysts expect roughly 7% revenue growth, which aligns with our view. The market fairly values steady growth and margin expansion.
Breaks if: ASR program is canceled or materially delayed
Breaks if: EPS falls below $2.53
Breaks if: Operating margin falls below 19.5%
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with elements of a durable compounder. The current thesis is in a watch state, reflecting cautious optimism due to recent management efforts and a mixed financial performance.
The market seems to have priced in a low expectations gap, indicating that RAL is viewed as relatively cheap compared to its peers. However, there is a risk of credibility loss if guidance is cut after recent increases.
Management is on track with its priorities, including cost-saving initiatives and capital returns to shareholders. However, recent earnings misses and a downward trend in surprises suggest that performance may not consistently meet expectations.
Key factors include the Fed's interest rate decisions and the performance of sector leaders like APH, GLW, and KEYS. A favorable shift in these areas could provide a boost to RAL's performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified that could weaken the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Full-year revenue falls below $2.185 billion
Over the next 1 to 3 years, RAL's trajectory will depend on its ability to execute on management priorities and navigate external economic factors. Not investment advice.