Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Have you evaluated the performance of Watts Water's (WTS) international operations during the quarter that concluded in June 2025? Considering the extensive worldwide presence of this maker of valves for plumbing, heating and water needs, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly inf ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 11th:Tutor Perini Corporation (TPC) : This construction company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.4% over the last 60 days.Tutor Perini’s shares gained 60.7% over the last three months compared with the S&P 500’s advance of 9.4%. The company possesses a Momentum Score  of A.Gilat Satellite Networks Ltd. (GILT) : This satellit ...

Key Takeaways WTS Q2 EPS rose to $3.09 from $2.46, beating estimates by 15.3% on strong pricing and demand.Q2 sales grew 8% to $644M, with 6% organic growth driven by price, volume, and tariff-related pull-forward.Americas segment led growth with 11% sales rise and 290 bps margin expansion to 27.2%.Watts Water Technologies, Inc. (WTS) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.09 compared with $2.46 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 15. ...

Watts Water (WTS) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Company ParticipantsDiane McClintock - SVP - FP&A & IRRobert Pagano - Chairman, President & CEORyan Lada - CFOShashank Patel - CFONathan Jones - Managing DirectorJeffrey Hammond - Managing DirectorMichael Pesendorfer - VP - Senior Research AssociateAndrew Krill - DirectorJoseph Giordano - Managing DirectorNick Cash - Global Investment Research AssociateConference Call ParticipantsRyan Connors - MD & Research AnalystOperatorThank you for sta ...

Financial Data and Key Metrics Changes - The company reported record sales of $644 million for Q2 2025, an increase of 8% on a reported basis and 6% on an organic basis [15][16] - Adjusted EBITDA of $153 million increased by 22%, with an adjusted EBITDA margin of 23.8%, up 280 basis points [17] - Adjusted earnings per share rose by 26% to $3.09, driven by operations, acquisitions, foreign exchange, and reduced interest expense [18] Business Line Data and Key Metrics Changes - Organic sales in the Americas increased by 10%, while reported sales were up 11%, driven by price, volume, and pull forward demand [15][16] - Europe experienced an organic sales decline of 8% and reported sales down 3%, attributed to ongoing OEM and market weakness [16] - APMEA sales decreased by 1% on an organic basis and 3% on a reported basis, with growth in Australia, New Zealand, and the Middle East offset by declines in China [16] Market Data and Key Metrics Changes - The Americas segment margin increased by 290 basis points to 27.2% [17] - Europe segment margins increased by 170 basis points to 11.7% [17] - APMEA segment margin remained flat at 18.9% compared to the prior year [17] Company Strategy and Development Direction - The company is focusing on M&A, having acquired EasyWater, which is expected to contribute approximately $5 million in sales and be neutral to adjusted EPS in 2025 [11] - The rollout of the Nexa Intelligent Water Management solution is gaining traction, with successful installations in various sectors [12] - The company is committed to sustainability, having published its 2024 sustainability report highlighting progress in safety, energy efficiency, and water conservation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current trade environment and increasing full-year sales and margin outlook due to strong first-half performance [25][26] - There is caution regarding the European market, with ongoing softness in general construction and uncertainty around order rates [49] - The company expects continued strength in data centers, which is offsetting residential market softness [94] Other Important Information - The company estimates a direct tariff impact of approximately $40 million for 2025, down from a previous estimate of $60 million [21][56] - Free cash flow year-to-date through Q2 was $105 million, with expectations for sequential improvement [19] Q&A Session Summary Question: Impact of pull forward in sales - Approximately $20 million of sales pull forward was realized in the quarter [28] Question: Pricing dynamics and tariff impacts - Price realization was approximately 3% in Q2, with expectations for mid-single digits in the second half [57] Question: Competitive positioning and domestic manufacturing - The company believes its domestic manufacturing strategy provides a competitive advantage in the current uncertain market environment [43] Question: Update on European heat pump market - Destocking in the heat pump market is expected to end by Q3, but general construction remains soft in Europe [49] Question: Changes in tariff estimates - The reduction from $60 million to $40 million in direct costs is due to changes in tariffs, including new copper tariffs [56] Question: Integration of acquisitions - All acquisitions are integrating well, with synergies being realized across the board [61] Question: Future of Nexa platform - The company expects the sales cycle for Nexa to shorten as more customers realize its benefits [77]

Q2 2025 Performance - Record sales, operating income, and EPS were achieved in Q2 2025[5] - Organic sales increased by 6% due to favorable pricing, pull-forward demand, and incremental volume[5] - The adjusted operating margin reached a record of 21.6%, representing an expansion of 280 bps[5] - Adjusted EBITDA was $153 million, a 22% increase[13] - Adjusted EPS increased by 26% to $3.09[14] Segment Performance - Americas experienced a 10% increase in organic sales, with acquisitions adding $7 million[18] - Europe saw an 8% decrease in organic sales, but benefited from a $6 million FX benefit[18] - APMEA experienced a 1% decrease in organic sales due to project timing in China[18] Financial Position - Free cash flow was $105 million, a 12% decrease compared to the previous year[15] - The net debt to capitalization ratio was negative 10%[18] - Net leverage was negative 0.4x[18] 2025 Outlook - The full-year reported sales growth outlook was raised to between +2% and +5%[19] - The full-year organic sales growth outlook was raised to between flat and +3%[19] - The full-year adjusted EBITDA margin outlook was raised to between 20.7% and 21.3%[19]

For the quarter ended June 2025, Watts Water (WTS) reported revenue of $643.7 million, up 7.8% over the same period last year. EPS came in at $3.09, compared to $2.46 in the year-ago quarter.The reported revenue represents a surprise of +6.1% over the Zacks Consensus Estimate of $606.7 million. With the consensus EPS estimate being $2.68, the EPS surprise was +15.3%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Core Insights - Watts Water (WTS) reported quarterly earnings of $3.09 per share, exceeding the Zacks Consensus Estimate of $2.68 per share, and up from $2.46 per share a year ago [1] - The earnings surprise was +15.30%, and the company has surpassed consensus EPS estimates for four consecutive quarters [2] - The company generated revenues of $643.7 million for the quarter, surpassing the Zacks Consensus Estimate by 6.10% and increasing from $597.3 million year-over-year [3] Financial Performance - The earnings surprise of +15.30% indicates strong performance relative to expectations [2] - Revenue growth of approximately 7.0% year-over-year reflects the company's ability to outperform market estimates consistently [3] - The stock has appreciated about 29.7% year-to-date, significantly outperforming the S&P 500's gain of 7.1% [4] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.22 for the next quarter and $9.47 for the current fiscal year [5][8] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [7] - The Instruments - Control industry, to which Watts Water belongs, is currently in the top 26% of Zacks industries, indicating a positive industry outlook [9]

Note changes in performance are relative to second quarter 2024 North Andover, Mass., August 6, 2025 -- Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the second quarter of 2025. Chief Executive Officer Robert J. Pagano Jr. said, "We delivered another strong quarter that surpassed our expectations as we achieved record sales, operating inc ...