Wall Street analysts’ outlook for Xylem Inc. (XYL)

Xylem Inc. (NYSE: XYL) stock fell -7.95% on Monday to $101.42 against a previous-day closing price of $110.18. With 11.67 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.87 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $101.90 whereas the lowest price it dropped to was $97.29. The 52-week range on XYL shows that it touched its highest point at $118.58 and its lowest point at $72.08 during that stretch. It currently has a 1-year price target of $110.67. With its current market cap of 18.02 billion, XYL has annualized dividend of $1.20 while the current yield stands at 1.18%. Beta for the stock currently stands at 1.09.

Top 5 Undervalued Stocks To Own In 2023

Microchip Maker Releases "World's Most Powerful Data Center CPU". It could allow the company who manufactures it to lead the industry as the global microchip shortage continues into the coming year. We've put together a free research report that explains all the details. Not only will you find out why analysts believe this chip manufacturer could lead the pack, you will also discover four more potential winners for the coming year.

Click here to download your Free Research Report…


Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of XYL was down-trending over the past week, with a drop of -13.26%, but this was down by -6.34% over a month. Three-month performance surged to 11.40% while six-month performance rose 20.25%. The stock lost -4.79% in the past year, while it has lost -8.28% so far this year. A look at the trailing 12-month EPS for XYL yields 1.76 with Next year EPS estimates of 3.16. For the next quarter, that number is 0.79. This implies an EPS growth rate of 67.70% for this year and 16.43% for next year. EPS is expected to grow by 18.76% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.20%.

Float and Shares Shorts:

At present, 180.20 million XYL shares are outstanding with a float of 178.75 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.36 million, which was 1.86% higher than short shares on Sep 14, 2022. In addition to Mr. Patrick K. Decker as the firm’s Pres, CEO & Director, Ms. Sandra E. Rowland serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 91.24% of XYL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.25% of XYL, in contrast to 35.53% held by mutual funds. Shares owned by individuals account for 0.93%. As the largest shareholder in XYL with 11.15% of the stake, The Vanguard Group, Inc. holds 20,085,192 shares worth 20,085,192. A second-largest stockholder of XYL, Aristotle Capital Management LLC, holds 10,703,891 shares, controlling over 5.94% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in XYL, holding 9,522,890 shares or 5.28% stake. With a 3.04% stake in XYL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,482,567 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.33% of XYL stock, is the second-largest Mutual Fund holder. It holds 4,197,225 shares valued at 464.09 million. Vanguard 500 Index Fund holds 2.31% of the stake in XYL, owning 4,165,877 shares worth 460.62 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for XYL since 17 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With XYL analysts setting a high price target of $129.00 and a low target of $92.00, the average target price over the next 12 months is $110.45. Based on these targets, XYL could surge 27.19% to reach the target high and fall by -9.29% to reach the target low. Reaching the average price target will result in a growth of 8.9% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. XYL will report FY 2022 earnings on 02/01/2024. Analysts have provided yearly estimates in a range of $2.75 being high and $2.69 being low. For XYL, this leads to a yearly average estimate of $2.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Xylem Inc. surprised analysts by $0.13 when it reported $0.79 EPS against a consensus estimate of $0.66. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.83 and the low estimate is $0.76. The average estimate for the next quarter is thus $0.79.

Summary of Insider Activity:

Insiders traded XYL stock several times over the past three months with 0 Buys and 4 Sells. In these transactions, 0 shares were bought while 12,243 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 110,407 while 84,164 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *