Xylem Keeps Growing, Shares Keep Rising

The water and wastewater treatment company is growing and beat consensus revenue estimates in each of the last four quarters. Part of the revenue success comes from acquisitions, which contributed $480 million in 2024’s first quarter. XYL also rewards shareholders with a healthy and growing dividend, which currently yields 1.01%.

So, it’s not surprising that XYL shares have flown up 25% this year – and there could be even more room to grow!

Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Xylem Shares Treated Well by Big Money

Institutional volumes reveal plenty. In the last year, XYL has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in XYL shares, pushing the stock higher:

Source: www.mapsignals.com

Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Xylem.

Xylem Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, XYL has had strong sales and EPS growth:

• 1-year sales growth rate (+33%)
• 3-year EPS growth rate (+31.2%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +12.3%.

Now it makes sense why the stock has been powering to new heights. XYL is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

XYL has recently been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times recently. The blue bars below show when XYL was a top pick…rising above the fray.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Xylem Price Prediction

The XYL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in XYL at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.