Stock of the Day

Xylem (XYL)

$127.76

+$1.10 (+0.9%)

Market Cap: $31.13B

About Xylem

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services.

The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue, and Flojet brands. The Measurement & Control Solutions segment offers smart meters, networked communication devices, data analytics, test equipment, controls, sensor devices, software and managed services, and critical infrastructure services; and software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment. This segment sells its products under the Pure Technologies, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brands. The Integrated Solutions and Services segment provides maintenance services, mobile services, digital outsourced solutions, wastewater systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, ion exchange, and deionization under Aquapro, WaterOne, and Ion Pure brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. Xylem Inc. was incorporated in 2011 and is headquartered in Washington, District of Columbia.

Xylem Bull Case

Here are some ways that investors could benefit from investing in Xylem Inc.:

• The current stock price is around $124, which may present a buying opportunity for investors looking for growth in the industrial sector.
• Xylem Inc. has recently reported strong quarterly earnings, exceeding analysts' expectations, which indicates robust financial health and operational efficiency.
• The company has a solid market capitalization of over $30 billion, suggesting stability and a significant presence in the industry.
• With a dividend yield of approximately 1.28%, Xylem Inc. offers a reliable income stream for investors, reflecting its commitment to returning value to shareholders.
• Analysts have a consensus rating of "Moderate Buy" for Xylem Inc., with several recent upgrades indicating positive sentiment and potential for future growth.

Xylem Bear Case

Investors should be bearish about investing in Xylem Inc. for these reasons:

• The stock has experienced fluctuations, recently trading down about 1.1%, which may raise concerns about short-term volatility.
• Despite positive earnings, the price-to-earnings ratio is relatively high at around 34, suggesting that the stock may be overvalued compared to its earnings.
• Recent target price adjustments by analysts indicate some uncertainty, with reductions from previous estimates, which could signal potential challenges ahead.
• The company has a debt-to-equity ratio of 0.19, which is low, but any increase in debt could impact financial flexibility and investor confidence.
• Market conditions and economic factors could affect Xylem Inc.'s performance, making it essential for investors to consider broader market trends before investing.

Recent News

• Xylem (XYL): Buy, Sell, or Hold Post Q1 Earnings? (msn.com)
• JPMorgan Begins Coverage of Xylem (XYL) Stock with Overweight Rating (insidermonkey.com)
• JP Morgan Initiates Coverage of Xylem (XYL) with Overweight Recommendation (msn.com)
• 4XYL : Where Xylem Stands With Analysts (benzinga.com)