
NYSE:XYL
This summary was created by AI, based on 2 opinions in the last 12 months.
Xylem Inc. (XYL-N) has garnered positive attention from analysts, with insights highlighting its role in the essential water sector, where it treats, transports, and tests both drinking and wastewater. The company is considered a rare pure-play option in the publicly traded water industry, especially as global water scarcity becomes a pressing issue. With 70% of the Earth’s surface covered by water, of which only 2% is drinkable, Xylem stands to benefit significantly from the demand for refined water solutions. Additionally, there is an emphasis on the need to refurbish aging infrastructure in developed countries, underscoring the long-term growth potential of this firm. The company is currently engaged in improving its operating margins by focusing on more lucrative customer segments and products, and its stock seems not overly bought, providing good entry points for potential investors.
This was a spin out from ITT Corp in 2011. They make water equipment and sources to the water industry. Their products encompass anywhere from water transportation (pumps, valves, controls), treatment and testing. Their end markets include municipalities, utilities, industrial clients, building services, commercial clients, and even the agricultural industry. 70% of the globe is made up of water, but only 1% is actually drinkable or potable. There is the issue of emerging markets, where they are still building out their water infrastructure. In the developed markets, there is the problem of aging infrastructure which needs replacement. Dividend yield of 1.26%. (Analysts’ price target is $53.58.)