) reached a new 52-week high of $39.07 during its trading session
on Feb 21. This marks a nominal increase from the previous high
of $38.79 hit a day ago.
Xylem closed the trading day on Feb 21 at $38.86, reflecting a
solid return of 42.7% in the past one year. The trading volume
for the session was 1,321K shares. The water solutions provider
company, with a Zacks Rank #2 (Buy), has potential for further
accretion. This is reflected in both its expected earnings growth
rate of 6.7% over the next five years and earnings estimate
revision for 2014.
Xylem posted impressive results for the fourth quarter of
2013. Adjusted earnings per share came in at 56 cents, up 19%
from the year-ago quarter and roughly 8% above the Zacks
Consensus Estimate of 52 cents. Shares have risen 11.5% after the
results were announced on Feb 4.
In the fourth quarter, revenues grew 7% year over year to
$1.03 billion. The increase in revenues was a result of improved
demand in the industrial and public utility markets.
The company received many important contracts during the
quarter, in regions including New Jersey, Colombia and different
parts of Asia. During the quarter, Xylem received total orders
worth $986 million, reflecting a hike of 6% year over year, on a
constant currency basis.
Based on the strong results for the quarter, Xylem expects
2014 results to be more growth driven. Revenues in 2014 are
expected to be roughly $4.0 billion, up 2-4% year over year.
Adjusted net income is estimated in the range of $345 to $370
million, with earnings per share in the range of $1.85 to
Following the results, the Zacks Consensus Estimate for 2014
and 2015 increased 2.1% to $1.96 per share and 4.7% to $2.24 per
share, respectively, in the past 30 days. Also, Xylem has an
average surprise of 6.5% in the trailing four quarters.
Other Stocks to Consider
Xylem currently has a market capitalization of $7.2 billion.
Other stocks to watch out for in the industry include
Altra Industrial Motion Corp.
The Middleby Corporation
). All these stocks carry the same Zacks Rank as Xylem.
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.