Zacks' analysis, leveraging its historically successful Rank and Style Scores, identifies Xylem (XYL), a global water solutions provider, as a compelling growth stock. Despite a Zacks Rank #3 (Hold), XYL boasts a strong B-rated VGM and Growth Style Score, underpinned by a projected 12.9% year-over-year earnings growth for the current fiscal year. Further supporting its growth outlook, XYL has seen a recent analyst upgrade for FY2025, increasing the consensus estimate to $4.82 per share, and consistently delivers an average earnings surprise of 6.1%.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Why Xylem (XYL) is a Top Growth Stock for the Long-Term Read MoreHide Full Article For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days. Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on. The Style Scores are broken down into four categories: Value Score For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks. Growth Score Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time. Momentum Score Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks. VGM Score What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. Investors can count on the Zacks Rank's success, with 1 (Strong Buy) stocks producing an unmatched +23.81% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a 2 (Buy) rank, on any given day. But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from. That's where the Style Scores come in. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank 1 or 2 that also have Style Scores of A or B. If you like a stock that only has a 3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible. Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy. Here's an example: a stock with a 4 (Sell) or 5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too. Thus, the more stocks you own with a 1 or 2 Rank and Scores of A or B, the better. Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations. XYL is a 3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. XYL has a Growth Style Score of B, forecasting year-over-year earnings growth of 12.9% for the current fiscal year. One analyst revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.01 to $4.82 per share. XYL also boasts an average earnings surprise of +6.1%. With a solid Zacks Rank and top-tier Growth and VGM Style Scores, XYL should be on investors' short list. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Image: Bigstock Why Xylem (XYL) is a Top Growth Stock for the Long-Term For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on. The Style Scores are broken down into four categories: Value Score For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth Score Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.Momentum Score Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.VGM Score What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.Investors can count on the Zacks Rank's success, with 1 (Strong Buy) stocks producing an unmatched +23.81% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a 2 (Buy) rank, on any given day. But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from. That's where the Style Scores come in. You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank 1 or 2 that also have Style Scores of A or B. If you like a stock that only has a 3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible. Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy. Here's an example: a stock with a 4 (Sell) or 5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too. Thus, the more stocks you own with a 1 or 2 Rank and Scores of A or B, the better. Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.XYL is a 3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. XYL has a Growth Style Score of B, forecasting year-over-year earnings growth of 12.9% for the current fiscal year. One analyst revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.01 to $4.82 per share. XYL also boasts an average earnings surprise of +6.1%. With a solid Zacks Rank and top-tier Growth and VGM Style Scores, XYL should be on investors' short list. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Xylem (XYL), a leading global water solutions provider, has been identified by Zacks as a top growth stock for long-term investors. Despite holding a Zacks Rank 3 (Hold), indicating a neutral short-term outlook, XYL exhibits robust fundamental characteristics with a B-rated VGM Score and a Growth Style Score of B. These favorable scores are underpinned by a projected 12.9% year-over-year earnings growth for the current fiscal year. Complementing this, one analyst recently revised fiscal 2025 earnings estimates higher, contributing to a $0.01 increase in the Zacks Consensus Estimate to $4.82 per share. XYL also consistently achieves an average earnings surprise of +6.1%. Zacks' methodology suggests that a 3 Rank stock with A or B Style Scores warrants attention, positioning XYL as a potential outperformer in line with its "strongly positive" sentiment. The combination of a solid Zacks Rank and top-tier Style Scores indicates a higher likelihood of success, making XYL a compelling consideration, particularly for growth-oriented strategies.
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