) reached a new 52-week high of $35.29 during its trading session
on Jan 10. This marks a nominal increase from the previous high
of $34.93 that the stock hit on Nov 20, 2013.
Xylem closed the trading day on Jan 10 at $34.91, reflecting a
solid return of 29.2% in the past one year. The trading volume
for the session was 956K shares. The water solutions provider
company, with a Zacks Rank #3 (Hold), has potential for further
accretion. This is reflected in both its expected earnings growth
rate (8.1% over the next five years) and earnings estimate
revision for 2014.
We are bullish about Xylem's long-term growth prospects as its
contract pipeline is strong, which improves the possibility of
better revenues in the quarters ahead. In the third quarter 2013,
the company received total orders worth $955 million, which
reflected an increase of 8% year over year on a constant currency
Major order wins included $6.5 million Singapore deal and the
largest ozone contract in China worth $1.9 million. In Dec 2013,
Xylem won a $2.7 million contract to provide equipment and
technology for a storm water drainage system along Route 35 on
the New Jersey coastline.
Also, Xylem has to its credit contract wins in India,
Colombia, United Arab Emirates, Sweden and Beijing.
Additionally, Xylem is focusing on enhancing shareholders'
value through dividend payments and share buybacks. In the first
nine months of 2013, the company returned $107.0 million to
shareholders via dividends and share repurchases, compared with
$58.0 million in the first nine months of 2012.
Also, Xylem has an average surprise of 5.1% in the trailing
four quarters. For 2013, the company has an
Other Stocks to Consider
Xylem currently has a market capitalization of $6.4 billion.
Other stocks to watch out for in the industry are
Altra Industrial Motion Corp.
The Middleby Corporation
). All these carry a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
GRACO INC (GGG): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
XYLEM INC (XYL): Free Stock Analysis Report
To read this article on Zacks.com click here.