Xylem Inc. (XYL), headquartered in Washington, D.C., is a global leader in water technology dedicated to addressing the world's most critical water challenges. With a market cap of $29.3 billion, the company provides advanced technologies and services for water management, treatment, and transportation, empowering communities and industries worldwide while fostering environmental stewardship and sustainable growth.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Xylem fits this category. Xylem delivers reliable and forward-thinking water technology solutions by combining advanced engineering, cutting-edge innovation, and a steadfast commitment to sustainability.
Shares of the water technology company have fallen 17.4% from their 52-week high of $146.08, hit on May 21. The stock is down 7.8% over the past three months, significantly underperforming the broader Nasdaq Composite’s ($NASX) 12.7% gain during the same time frame.
Over the long term, XYL has achieved a YTD gain of 5.5% and returned 10.5% over the past 52 weeks. In comparison, the NASX has risen 32.7% in 2024 and 35.2% over the past year.
Since late October, XYL has been trading below its 200-day and 50-day moving averages, signaling a bearish trend.
On Oct. 31, Xylem's shares fell 6.5% after the company reported mixed Q3 results. Revenue of $2.1 billion rose 1.3% year over year but missed Wall Street estimates by 3.2%, while adjusted EPS of $1.11 met expectations. EBITDA came in slightly below forecasts at $447 million.
Despite a consistent gross margin of 37.3%, the operating margin improved significantly to 13.3% from 9.2% in the prior year, reflecting better operational efficiency.
The company lowered its full-year revenue guidance to $8.5 billion at the midpoint, a modest 0.6% reduction, but maintained its adjusted EPS guidance at $4.23.
Xylem's competitor, Parker Hannifin Corporation (PH), has outperformed XYL over the past year. Shares of Parker Hannifin gained 45.8% in 2024 and returned 10.6% over the past 52 weeks.
Wall Street analysts hold a cautiously optimistic view of XYL's prospects. Of the 18 analysts covering the stock, the consensus rating is “Moderate Buy.” Its mean price target of $152.07 indicates a potential upside of 26.1% from its current level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- S&P Futures Tick Lower Ahead of U.S. Retail Sales Data and FOMC Meeting
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