Xylem (NYSE:XYL) Stock, Quote.Headers.trade-ideas

Xylem

Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $7.4 billion in revenue in 2023.

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Xylem Inc. (NYSE: XYL) is well-poised for growth in the coming quarters, courtesy of its businesses and accretive acquisitions. The company&#39;s efforts to reward its shareholders add to its appeal.

Here&#39;s Why You Should Retain Xylem Stock in Your Portfolio for Now

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If you&#39;re interested in broad exposure to the Industrials - Water segment of the equity market, look no further than the Invesco S&amp;P Global Water Index ETF (ARCA:CGW), a passively managed exchange traded fund launched on 05/14/2007.

Should You Invest in the Invesco S&amp;P Global Water Index ETF?

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Xylem reported strong Q2 results, with revenue growth of 26%, adjusted EPS of $1.09, and raised its full-year guidance. 

Xylem&#39;s Water Wisdom Pays Off: Q2 Beats Estimates, Outlook Upgraded

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Xylem Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xyl#NYSE">XYL</a>) is well-poised for growth in the coming quarters, courtesy of its businesses and accretive acquisitions. The company&#39;s efforts to reward its shareholders add to its appeal.
Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. It is involved in the full water-process cycle, including the collection, distribution and return of water to the environment. XYL has a significant presence in the United States, the Asia Pacific, Europe and various other nations. Over the past year, this Zacks Rank #3 (Hold) company has gained 40.4% compared with the industry&#39;s 26.8% growth.
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Let&#39;s discuss the factors that might influence investors to retain this stock in their portfolio for the time being.
Business Strength: Xylem is seeing growth across most of its businesses. The Measurement &amp; Control Solutions (&quot;M&amp;CS&quot;) segment is benefiting from robust demand for advanced technology solutions like smart metering and other applications, primarily in the United States. The segment&#39;s organic sales were up 26% year over year, driven by smart metering demand and execution.
Growth in the transport application business, driven by a strong pipeline of capital projects in Western Europe and increased infrastructure projects in the United States, is boosting the Water Infrastructure segment&#39;s performance. Strong momentum in the treatment applications business, supported by increasing capital projects in emerging markets, also bodes well. The segment&#39;s organic sales increased 7% year over year in the second quarter, buoyed by price realization and growth across all regions and applications.
Strength in dewatering business across major markets (particularly in the United States and emerging regions), driven by increased sales volume and favorable pricing, is a key catalyst to the Water Solutions and Services segment&#39;s growth. The segment&#39;s organic sales grew 12% year over year in the second quarter, supported by higher capital project revenues and gains in integrated solutions and services in the United States.
Expansion Efforts: The company solidifies its product portfolio and leverages business opportunities through asset additions. Acquisitions contributed $265 million to Xylem&#39;s total revenues in the second quarter. The company acquired mission-critical water treatment solutions and services provider Evoqua in May 2023.
Evoqua&#39;s advanced water and wastewater treatment capabilities and position in key industrial markets complement Xylem&#39;s portfolio of solutions across the water cycle. The acquisition boosted its position in water technologies, solutions and services. The transaction is expected to deliver run-rate cost synergies of $140 million within three years upon closing. It is also expected to strengthen the company&#39;s balance sheet.
Rewards to Shareholders: Xylem&#39;s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first six months of 2024, it paid dividends of $175 million, up 25.9% year over year. The company also bought back shares worth $18 million in the same period. In February 2024, it hiked its dividend by 9%. Also, in 2023, Xylem paid out dividends worth $299 million and bought back shares worth $25 million.
<h2>Downsides of Xylem</h2>
Segmental Weakness: Xylem has been experiencing weakness in the Applied Water segment owing to the slowdown in the broader economy. In July 2024, the Institute for Supply Management&#39;s manufacturing index registered 48.5%, indicating a contraction in U.S. manufacturing activity for the third consecutive month. The impact of this slowdown is reflected in the decrease in demand for industrial and building solutions applications, including pumps, valves, heat exchangers, controls and dispensing equipment.
Amid these challenges, the segment&#39;s second-quarter revenues declined 5% on a year-over-year basis in the second quarter. A reduced number of project wins is likely to impact its performance in the near term.
Rising Costs: Xylem has been grappling with the adverse impacts of cost inflation. In the second quarter, its cost of revenues increased 26.1% year over year due to high raw material, labor, freight and overhead costs. Selling, general and administrative expenses rose 8.7% due to additional operational expenditure from the acquisition of Evoqua. Escalating costs pose a threat to the bottom line.
<h2>Stocks to Consider</h2>
Some better-ranked companies from the same space are discussed below.
Flowserve Corporation&nbsp;currently carries a Zacks Rank #2 (Buy).
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve&#39;s 2024 earnings has increased 3.8%.
Crane Company&nbsp;presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the Zacks Consensus Estimate for CR&#39;s 2024 earnings has increased 2%.
Parker-Hannifin Corporation&nbsp;currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin&#39;s fiscal 2025 earnings has increased 1.3%.
<a href="https://www.zacks.com/stock/news/2337929/here-s-why-you-should-retain-xylem-stock-in-your-portfolio-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2337929">To read this article on Zacks.com click here.</a>

Here's Why You Should Retain Xylem Stock in Your Portfolio for Now

If you&#39;re interested in broad exposure to the Industrials - Water segment of the equity market, look no further than the Invesco S&amp;P Global Water Index ETF (ARCA:CGW), a passively managed exchange traded fund launched on 05/14/2007.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
<h2>Index Details</h2>
The fund is sponsored by Invesco. It has amassed assets over $971.84 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. CGW seeks to match the performance of the S&amp;P GLOBAL WATER INDEX before fees and expenses.
The S&amp;P Global Water Index comprises of developed market securities including water utilities, infrastructure, equipment, instruments and materials.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.42%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, American Water Works Co Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/awk#NYSE">AWK</a>) accounts for about 8.63% of total assets, followed by Xylem Inc/ny (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xyl#NYSE">XYL</a>) and Veralto Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vlto#NYSE">VLTO</a>).
The top 10 holdings account for about 52.72% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has added roughly 8.91% and it&#39;s up approximately 19.45% so far this year and in the past one year (as of 09/09/2024), respectively. CGW has traded between $44.46 and $59.88 during this last 52-week period.
The ETF has a beta of 0.99 and standard deviation of 18.38% for the trailing three-year period, making it a low risk choice in the space. With about 74 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco S&amp;P Global Water Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CGW is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust Water ETF (ARCA:FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pho#NASDAQ">PHO</a>) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.75 billion in assets, Invesco Water Resources ETF has $2.15 billion. FIW has an expense ratio of 0.53% and PHO charges 0.60%.
<a href="https://www.zacks.com/stock/news/2333158/should-you-invest-in-the-invesco-s-p-global-water-index-etf-cgw?cid=CS-BENZ-FT-sector_etf-2333158">To read this article on Zacks.com click here.</a>

Should You Invest in the Invesco S&P Global Water Index ETF?

WIIM

Xylem shares are trading lower after TD Cowen downgraded the stock from Buy to Hold and announced a $138 price target.

7 analysts have expressed a variety of opinions on Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $159.43, a high estimate of $172.00, and a low estimate of $138.00. This current average has increased by 2.59% from the previous average price target of $155.40. 
<img src="https://www.benzinga.com/files/images/story/2024/1725372054_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The perception of Xylem by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Joseph Giordano</td>
<td>TD Cowen</td>
<td>Announces</td>
<td>Hold</td>
<td>$138.00</td>
<td>-</td>
</tr>
<tr>
<td>Damian Karas</td>
<td>UBS</td>
<td>Announces</td>
<td>Buy</td>
<td>$165.00</td>
<td>-</td>
</tr>
<tr>
<td>Michael Halloran</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$170.00</td>
<td>$155.00</td>
</tr>
<tr>
<td>Nathan Jones</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$172.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Deane Dray</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$163.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Nathan Jones</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$170.00</td>
<td>$157.00</td>
</tr>
<tr>
<td>Joseph Giordano</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$138.00</td>
<td>$135.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Xylem. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Xylem compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Xylem's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Capture valuable insights into Xylem's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/XYL/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Xylem analyst ratings.</a>
<h2>Unveiling the Story Behind Xylem</h2>
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $7.4 billion in revenue in 2023.
<h3>Xylem's Financial Performance</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Xylem displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 25.96%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 8.94%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Xylem's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.89%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Xylem's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.22%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Xylem's debt-to-equity ratio is below the industry average. With a ratio of 0.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Beyond The Numbers: 7 Analysts Discuss Xylem Stock

TD Cowen analyst Joseph Giordano downgrades Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) from Buy to Hold and announces $138 price target.

Downgrades

Price Target

TD Cowen Downgrades Xylem to Hold, Announces $138 Price Target

UBS analyst Damian Karas initiates coverage on Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) with a Buy rating and announces Price Target of $165.

Initiation

UBS Initiates Coverage On Xylem with Buy Rating, Announces Price Target of $165

Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $157.18, a high estimate of $172.00, and a low estimate of $135.00. Witnessing a positive shift, the current average has risen by 6.07% from the previous average price target of $148.18.
<img src="https://www.benzinga.com/files/images/story/2024/1722452456_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
A comprehensive examination of how financial experts perceive Xylem is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Michael Halloran</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$170.00</td>
<td>$155.00</td>
</tr>
<tr>
<td>Nathan Jones</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$172.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Deane Dray</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$163.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Nathan Jones</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$170.00</td>
<td>$157.00</td>
</tr>
<tr>
<td>Joseph Giordano</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$138.00</td>
<td>$135.00</td>
</tr>
<tr>
<td>Bryan Blair</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$152.00</td>
<td>$147.00</td>
</tr>
<tr>
<td>John Eade</td>
<td>Argus Research</td>
<td>Raises</td>
<td>Buy</td>
<td>$165.00</td>
<td>$146.00</td>
</tr>
<tr>
<td>Deane Dray</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$162.00</td>
<td>$157.00</td>
</tr>
<tr>
<td>Bryan Blair</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$147.00</td>
<td>$142.00</td>
</tr>
<tr>
<td>Brett Linzey</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Neutral</td>
<td>$135.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Michael Halloran</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$155.00</td>
<td>$151.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Xylem. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Xylem compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Xylem's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Xylem's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/XYL/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Xylem analyst ratings.</a>
<h2>About Xylem</h2>
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $7.4 billion in revenue in 2023.
<h3>Financial Insights: Xylem</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Xylem showcased positive performance, achieving a revenue growth rate of 40.4% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: Xylem's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.53%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Xylem's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.5%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Xylem's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.96%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Xylem's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.23.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Beyond The Numbers: 11 Analysts Discuss Xylem Stock

Baird analyst Michael Halloran maintains Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) with a Outperform and raises the price target from $155 to $170.

Baird Maintains Outperform on Xylem, Raises Price Target to $170

Stifel analyst Nathan Jones maintains Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) with a Buy and raises the price target from $170 to $172.

Stifel Maintains Buy on Xylem, Raises Price Target to $172

RBC Capital analyst Deane Dray maintains Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) with a Outperform and raises the price target from $160 to $163.

RBC Capital Maintains Outperform on Xylem, Raises Price Target to $163

Xylem shares are trading lower. The company reported Q2 financial results.

Xylem Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) shares are trading lower after it&nbsp;reported <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b40032647/xylem-reports-second-quarter-2024-results-and-raises-full-year-guidance" rel="noreferrer noopener">second-quarter FY24 results</a>.
Revenue grew 26% Y/Y to $2.17 billion (+9% organically), beating the consensus of $2.145 billion on strong execution and demand.
By segment, Measurement &amp; Control Solutions revenue was $482 million (+26% Y/Y), Water Infrastructure revenue was $631 million (+22% Y/Y), Applied Water revenue was $456 million (-5% Y/Y) and Water Solutions and Services was $600 million (+76% Y/Y).
Orders were up 12% Y/Y on a reported basis and declined 1% Y/Y organically to $2.09 billion.
The adjusted EBITDA margin reached 20.8%, up 170 basis points Y/Y, driven by productivity savings, higher volume, and price increases, which outweighed the effects of inflation, strategic investments, and mix changes.
Adjusted EPS was $1.09 (+14% Y/Y),&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of $1.05</a>.&nbsp;
Operating cash flow for six months ended June 30 stood at $377 million, compared to $9 million a year ago.
The company exited the year with cash and cash equivalents worth $815 million.&nbsp;
Outlook: For FY24, Xylem raised the adjusted EPS&nbsp;outlook&nbsp;from&nbsp;$4.10-$4.25&nbsp;to&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$4.18-$4.28 (versus the consensus of&nbsp;$4.21)</a>.
Also, the company revised its FY24 revenue outlook to $8.55 billion (consensus $8.56 billion), marking an increase of 16% Y/Y, with organic revenue growth expected to be 5%–6%, up from the previous range of 4%–6%.
Xylem&#8217;s President and CEO, Matthew Pine, said, &#8220;Healthy demand, combined with the team&#8217;s disciplined operational execution, delivered significant margin expansion in the quarter. Evoqua integration and synergies are also well on track.&#8221;
&#8220;We are confident in the team&#8217;s commitment to realizing our operational potential, and underlying demand in our largest markets remains resilient despite likely macro variability in the second half. Our diversified portfolio of mission-critical solutions is ideally positioned to meet global demand from intensifying water challenges.&#8221;
Investors can gain exposure to the stock via Global X Clean Water ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AQWA#NASDAQ">AQWA</a>) and Invesco S&amp;P Global Water Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CGW#NYSE">CGW</a>).
Price Action: XYL shares are down 3% to $137.29 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Xylem's Water Wisdom Pays Off: Q2 Beats Estimates, Outlook Upgraded

&nbsp;This represents an increase from the Company&#39;s previous full-year&nbsp;guidance&nbsp;of 15 to&nbsp;16 percent&nbsp;on a reported basis and 4 to&nbsp;6 percent&nbsp;on an organic basis.

Xylem Revises FY24 Revenue Guidance To $8.55B (Est $8.561B), Up Approximately 16%, With Organic Revenue Growth Of 5% - 6%, Up From 4% - 6%

Xylem Increases FY24 Adjusted EPS Guidance From $4.10 - $4.25 To $4.18 - $4.28, Est $4.22

Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) reported quarterly earnings of $1.09 per share which beat the analyst consensus estimate of $1.05 by 3.81 percent. This is a 11.22 percent increase over earnings of $0.98 per share from the same period last year. The company reported quarterly sales of $2.169 billion which beat the analyst consensus estimate of $2.145 billion by 1.13 percent. This is a 25.96 percent increase over sales of $1.722 billion the same period last year.

Earnings Beats

Xylem Q2 2024 Adj. EPS $1.09 Beats $1.05 Estimate, Sales $2.169B Beat $2.145B Estimate

Stifel analyst Nathan Jones maintains Xylem (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) with a Buy and raises the price target from $157 to $170.

Stifel Maintains Buy on Xylem, Raises Price Target to $170

Xylem Commits $50M To Expand Corporate Venture Investing Strategy; Targets Startups And Venture Capital Partners Addressing Climate Challenges Like Water Scarcity, Quality, And Decarbonization

Launched on 05/14/2007, the Invesco S&amp;P Global Water Index ETF (ARCA:CGW) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Water segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $955.71 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Water segment of the equity market. CGW seeks to match the performance of the S&amp;P GLOBAL WATER INDEX before fees and expenses.
The S&amp;P Global Water Index comprises of developed market securities including water utilities, infrastructure, equipment, instruments and materials.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Xylem Inc/Ny (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xyl#NYSE">XYL</a>) accounts for about 8.56% of total assets, followed by American Water Works Co Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/awk#NYSE">AWK</a>) and Veralto Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vlto#NYSE">VLTO</a>).
The top 10 holdings account for about 54.53% of total assets under management.
Performance and Risk
The ETF has added roughly 5.49% and is up about 12.92% so far this year and in the past one year (as of 07/09/2024), respectively. CGW has traded between $44.46 and $59.71 during this last 52-week period.
The ETF has a beta of 0.98 and standard deviation of 18.19% for the trailing three-year period, making it a low risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&amp;P Global Water Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CGW is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
First Trust Water ETF (ARCA:FIW) tracks ISE Clean Edge Water Index and the Invesco Water Resources ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pho#NASDAQ">PHO</a>) tracks NASDAQ OMX US Water Index. First Trust Water ETF has $1.66 billion in assets, Invesco Water Resources ETF has $2.08 billion. FIW has an expense ratio of 0.53% and PHO charges 0.60%.
<a href="https://www.zacks.com/stock/news/2298261/should-you-invest-in-the-invesco-s-p-global-water-index-etf-cgw?cid=CS-BENZ-FT-sector_etf-2298261">To read this article on Zacks.com click here.</a>

DuPont's Water Unit Attracts Interest From Potential Buyers

Xylem's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>) short percent of float has fallen 15.35% since its last report. The company recently reported that it has 3.66 million shares sold short, which is 1.93% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.14 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Xylem Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1718311520_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Xylem has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Xylem's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Xylem's peer group average for short interest as a percentage of float is 3.34%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Press Releases

Sense and Xylem's Sensus Team to Drive a New Standard for High-Resolution Data with Next-Generation 1MHz Meter

Xylem Expands Corporate Venture Capital Investments to $50M, Targeting Water Scarcity, Quality, and Decarbonization

Romanian Utility Tackles Water Losses with Advanced Data Analytics

Water Conservation Solutions From High School and University Teams Take Top Prize in 2024 Xylem Global Student Innovation Challenge

Xylem Reports Second Quarter 2024 Results and Raises Full-Year Guidance

Xylem Announces Participation at Upcoming Investor Conferences

Xylem Inc. Declares Third Quarter Dividend of 36 Cents per Share

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