Core Viewpoint - Pentair plc (PNR) has shown strong stock performance, reaching a 52-week high and outperforming its sector and industry peers in terms of year-to-date returns [1][3]. Financial Performance - Pentair reported an EPS of $1.39 in its last earnings report, exceeding the consensus estimate of $1.33 [2]. - For the current fiscal year, Pentair is projected to achieve earnings of $4.84 per share with revenues of $4.15 billion, reflecting an 11.78% increase in EPS and a 1.53% increase in revenues [3]. - The next fiscal year forecasts earnings of $5.35 per share on revenues of $4.28 billion, indicating a year-over-year change of 10.42% in EPS and 3.32% in revenues [3]. Valuation Metrics - Pentair's current valuation metrics show a P/E ratio of 23.2X for the current fiscal year, below the peer industry average of 30.7X [7]. - The stock trades at a trailing cash flow basis of 22.1X compared to the peer group's average of 15.3X, and has a PEG ratio of 2.15 [7]. Zacks Rank and Style Scores - Pentair holds a Zacks Rank of 2 (Buy) due to a favorable earnings estimate revision trend [8]. - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6][8]. Competitive Landscape - Zurn Elkay Water Solutions Corp (ZWS) is a notable peer with a Zacks Rank of 2 (Buy) and strong earnings performance, having beaten consensus estimates by 16.67% last quarter [9][10]. - ZWS is expected to post earnings of $1.44 per share on revenues of $1.66 billion for the current fiscal year, with shares gaining 1.8% over the past month [10].

Core Insights - Pentair plc (NYSE:PNR) is recognized as one of the 11 Best Value Dividend Stocks to buy currently [1] - The company specializes in water treatment solutions and is incorporated in Ireland, with its tax residence in the United Kingdom [2] Acquisition Details - Pentair recently completed the acquisition of Hydra-Stop LLC from Madison Industries for approximately $290 million, with a net purchase price of around $240 million after accounting for expected tax benefits of about $50 million [3] Market Outlook - Analysts express optimism regarding Pentair, highlighting that lower interest rates could enhance the housing market, leading to increased spending on pools and both residential and commercial water systems [4] - The company's ongoing transformation efforts are anticipated to contribute to further growth [4] Dividend Policy - Pentair has a robust dividend policy, declaring a quarterly dividend of $0.25 per share on September 22, consistent with previous dividends [5] - The company has raised its dividend payouts for 49 consecutive years, with a current dividend yield of 0.91% as of September 26 [5]

Core Insights - Pentair is on the verge of becoming a Dividend King, having increased its dividend for 49 consecutive years, with a strong likelihood of achieving this milestone in 2026 [1][3][4] Financial Position - Pentair's dividend payout ratio is notably low at 26.2%, indicating strong financial flexibility to support future dividend increases [5] - The company anticipates adjusted earnings per share growth of 10% to 12% for the full year 2025, with analysts projecting a similar 10% growth for the next year [6] Stock Performance - Over the past five years, Pentair's shares have increased by more than 140%, outperforming the S&P 500, which has roughly doubled during the same period [7][10] Industry Trends - Pentair is well-positioned to benefit from growing concerns regarding access to clean water and the need for infrastructure upgrades in aging water systems [8] - The expansion of the Internet of Things (IoT) presents significant growth opportunities, with Pentair aiming to more than double its connected devices from around 500,000 next year [9]

Company Overview - Pentair plc (PNR) has a market capitalization of $18 billion and provides smart, sustainable water solutions for homes, businesses, and industries globally [1] - The company operates through three segments: Flow, Water Solutions, and Pool, focusing on advanced technologies for water treatment, reuse, and efficient management [1][2] Financial Performance - In Q2 2025, Pentair reported adjusted EPS of $1.39, exceeding consensus estimates and reflecting a 14% year-over-year increase [5] - Net sales for the quarter grew 2% year-over-year to $1.123 billion, surpassing expectations, while adjusted segment operating margin expanded by 170 basis points to 26.4% [5] - Management raised full-year adjusted EPS guidance to $4.75 - $4.85 and increased the 2025 sales growth outlook to 1% - 2% [5] Stock Performance - Pentair's stock has increased 10.1% year-to-date, outperforming the Dow Jones Industrials Average's 9.5% gain [4] - Over the past 52 weeks, Pentair shares have gained 15.5%, compared to the Dow Jones' 10.6% return [4] - The stock has consistently traded above its 50-day moving average since late April and above its 200-day moving average since early May [4] Market Position - Pentair is classified as a "large-cap" stock, with a portfolio that includes residential and commercial pool equipment, filtration systems, pumps, and water treatment products [2] - Compared to its rival Illinois Tool Works Inc. (ITW), which has seen a YTD increase of only 3.1% and a 1.9% rise over the past 52 weeks, Pentair has shown stronger performance [6] - Analysts have a consensus rating of "Moderate Buy" for Pentair, with a mean price target of $115.83, indicating a potential premium of 4.8% to current levels [6]

Market Overview - Major U.S. benchmarks rose less than 1% at the start of the week, primarily driven by gains from big tech corporations following Nvidia's $100 billion investment-partnership announcement with OpenAI [1] - Investor confidence may be temporary due to the growing market consensus of a potential government shutdown in the U.S. as Congress approaches the September 30 funding deadline without a clear agreement [1] Investment Recommendations - Recommended stocks for prudent investors include The Hanover Insurance Group (THG), Alcoa Corp. (AA), Pentair (PNR), Elbit Systems (ESLT), and Leonardo DRS, Inc. (DRS) as they bear low leverage and are considered safer options during market turmoil [2][10] - These stocks are expected to provide steady returns due to their solid growth prospects and improving revenue estimates for 2025 [10] Significance of Low-Leverage Stocks - Leverage refers to borrowing capital for operations and expansion, typically through debt financing, which can pose risks if not managed properly [4][5] - Companies with low debt-to-equity ratios are generally seen as less risky, especially during economic downturns [6][11] Stock Analysis Metrics - The debt-to-equity ratio is a key metric indicating financial risk, with a lower ratio reflecting improved solvency [7] - Stocks with a debt-to-equity ratio less than the industry median, a current price of at least $10, and substantial trading volume are preferred [12] Company Profiles - **The Hanover Insurance Group (THG)**: Focuses on insurance protection for businesses and personal items, with a projected 5.4% revenue improvement for 2025 and a 17.5% increase in earnings [15][16] - **Alcoa Corp. (AA)**: A leader in aluminum products, with a 6.1% expected sales growth for 2025 and a long-term earnings growth rate of 51.2% [17][18] - **Pentair (PNR)**: Provides sustainable water solutions, with a 1.5% sales growth estimate for 2025 following a strategic acquisition [19][20] - **Elbit Systems (ESLT)**: A leader in defense technology, with a projected 13.8% sales improvement for 2025 and a long-term earnings growth rate of 23.3% [20][21] - **Leonardo DRS (DRS)**: Develops advanced defense products, with a 10.9% expected sales growth for 2025 and a long-term earnings growth rate of 17.3% [22][23]

Core Viewpoint - Pentair plc announced a quarterly cash dividend of $0.25 per share, marking the 49th consecutive year of dividend increases [1] Company Overview - Pentair focuses on sustainable water solutions for residential, commercial, and industrial applications [1]

Core Insights - Pentair plc (PNR) has successfully completed the acquisition of Hydra-Stop LLC from Madison Industries, enhancing its portfolio to address critical water issues in growing cities [1][3]. Acquisition Details - Hydra-Stop, a manufacturer of insertion valves and line stops, is based in Burr Ridge, Illinois, and employs 50 people. It will be integrated into Pentair Flow's business segment within the Commercial and Infrastructure unit [2][7]. - The acquisition is valued at $290 million, with a net value of approximately $240 million after accounting for $50 million in tax benefits. Hydra-Stop is expected to generate $50 million in revenues by 2025, with a return on sales of 30% [3][7]. Financial Performance - In Q2 2025, Pentair reported adjusted earnings per share of $1.39, exceeding the Zacks Consensus Estimate of $1.33 by 4.5% and marking a 14% increase from the previous year. Net sales rose 2% year-over-year to $1.123 billion, surpassing the consensus estimate of $1.115 billion [4]. - The Flow segment's net sales remained flat at $397 million compared to the prior year, while operating earnings increased by 10% year-over-year to $93 million [5]. Stock Performance - Pentair's stock has appreciated by 18.2% over the past year, significantly outperforming the industry average growth of 4.8% [6].

Core Viewpoint - Pentair plc has completed the acquisition of Hydra-Stop LLC for approximately $290 million, with a net transaction value of about $240 million after tax benefits, aiming to enhance its offerings in the municipal water supply sector to address critical water issues due to population growth and aging infrastructure [1][2][11]. Group 1: Acquisition Details - The acquisition of Hydra-Stop LLC, a provider of specialty insertion valves and line stop fittings, is expected to generate approximately $50 million in revenue in 2025, with a Return on Sales of around 30% [2][3]. - Hydra-Stop will operate within Pentair's Commercial and Infrastructure business unit and will continue to serve its customers from its Burr Ridge, Illinois location [3]. Group 2: Company Overview - Pentair plc focuses on sustainable water solutions and had a revenue of approximately $4.1 billion in 2024, employing around 9,750 people globally [5]. - The company is recognized as a core large-cap value stock in the S&P 500, emphasizing its commitment to improving lives and the environment through innovative water management solutions [4][5].

Group 1: Economic Context and Investment Trends - Investors are increasingly turning to defensive plays amid economic warning signs, with gold and dividend stocks being popular safe havens [1][2] - The dividend landscape is broader than commonly recognized, with lesser-known companies outside of major names like Coca-Cola and Johnson & Johnson being worth consideration [2] Group 2: Company Profiles Pentair - Pentair has a dividend yield of 0.90%, an annual dividend of $1.00, and a dividend increase track record of 7 years, with a payout ratio of 27.32% [4][6] - The company recently reported earnings that beat analyst predictions, with modest revenue gains but significant improvements in profitability, aided by a favorable tariff landscape [4][5] - Pentair achieved a record $596 million in free cash flow in Q2, allowing for continued strategic acquisitions and expansion [5] Enterprise Products Partners - Enterprise Products Partners has a dividend yield of 6.88%, an annual dividend of $2.18, and a remarkable 28-year track record of dividend increases, with a payout ratio of 81.04% [8][9] - The company benefits from the stability of the midstream energy sector, consistently increasing its dividend while managing to repurchase $1.3 billion in shares [9][10] - Enterprise has a debt-to-equity ratio of 1.04 and is expected to have about 13% upside potential according to analyst ratings [11] Lamb Weston - Lamb Weston has a dividend yield of 2.64%, an annual dividend of $1.48, and a 7-year history of dividend increases, with a payout ratio of 58.96% [12][14] - Despite a 15% decline in shares year-to-date, the company reported stronger-than-expected fiscal fourth-quarter results, driven by volume growth and cost-cutting measures [13][14] - Analysts remain cautious, with a majority rating shares as a Hold, but the company is forecasted to have nearly 16% upside potential following recent performance [14]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Pentair plc (PNR) currently holds a Momentum Style Score of B, indicating potential as a solid momentum pick [3] - The company has a Zacks Rank of 2 (Buy), which is associated with strong market performance [4] Group 2: Performance Metrics - Over the past week, PNR shares increased by 0.28%, while the Zacks Waste Removal Services industry remained flat [6] - In the last month, PNR's price change was 5.69%, outperforming the industry's 1.09% [6] - PNR shares have risen by 14.06% over the past quarter and 21.27% over the last year, compared to the S&P 500's increases of 9.25% and 18.95%, respectively [7] Group 3: Trading Volume - The average 20-day trading volume for PNR is 1,034,888 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, 8 earnings estimates for PNR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.75 to $4.84 [10] - For the next fiscal year, 5 estimates have also moved upwards, indicating positive sentiment [10] Group 5: Conclusion - Considering the performance metrics and earnings outlook, PNR is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a noteworthy option for investors seeking short-term gains [12]