Do Wall Street Analysts Like Xylem Stock?
Quick Take
Wall Street analysts show mixed opinions on Xylem stock performance.
Key Points
- Analysts have varying ratings on Xylem stock.
- Recent performance raises concerns among investors.
- Market trends may influence future stock movements.
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~2 min readNeharika Jain
2 min read
Washington, District of Columbia-based Xylem Inc. (XYL) is a water technology company with a market cap of $25.7 billion. It addresses the world's most critical water, wastewater, and energy challenges.
This water technology company has notably underperformed the broader market over the past 52 weeks. Shares of Xylem have declined 15.4% over this time frame, while the broader S&P 500 Index ($SPX) has soared 24.3%. Moreover, on a YTD basis, the stock is down 20.5%, compared to SPX’s 8.1% rise.
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Narrowing the focus, the company has also lagged the State Street Industrial Select Sector SPDR Fund’s (XLI) 17.9% return over the past 52 weeks and 9.7% YTD rise.
On Apr. 28, shares of XYL plunged 4.5% despite delivering better-than-expected Q1 results. The company’s revenue increased 2.7% year-over-year to $2.1 billion, topping analyst estimates by a slight margin. Moreover, its adjusted EPS of $1.12 surpassed consensus expectations of $1.09. Despite the earnings beat, investor sentiment remained cautious as organic revenue remained flat and missed analysts’ expectations, overshadowing the modest growth in reported revenue. Management attributed the quarter’s upbeat performance to resilient demand across U.S. municipal and utility markets, particularly within the Water Infrastructure and Measurement & Control Solutions segments. However, results were partially weighed down by project timing delays in the Water Solutions and Services segment, continued weakness in China, and ongoing portfolio simplification initiatives.
For the current fiscal year, ending in December, analysts expect XYL’s EPS to grow 8.5% year over year to $5.51. The company’s earnings surprise history is promising. It met or topped the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 12 “Strong Buy,” one "Moderate Buy," and nine "Hold” ratings.
The configuration is slightly less bullish than a month ago, with 13 analysts suggesting a “Strong Buy” rating.
— Originally published at finance.yahoo.com
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