Zurn Elkay Water Solutions (US:ZWS) ZACKSยท2024-09-19 14:21Company Performance - Zurn Water's shares have increased by 7.8% over the past month, reaching a new 52-week high of $34.94 [1] - The stock has gained 15.7% since the beginning of the year, outperforming the Zacks Industrial Products sector (9.7%) and the Zacks Manufacturing - Electronics industry (11.2%) [1] Earnings and Revenue Expectations - For the current fiscal year, Zurn Water is projected to report earnings of $1.21 per share on revenues of $1.56 billion, reflecting a 24.74% increase in EPS and a 1.82% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $1.33 per share on $1.62 billion in revenues, indicating a year-over-year change of 9.67% in EPS and 4.04% in revenues [3] Valuation Metrics - Zurn Water's current trading multiple is 28.1X the current fiscal year EPS estimates, which is higher than the peer industry average of 22.2X [7] - The stock trades at 22.6X trailing cash flow, compared to the peer group's average of 21.8X, and has a PEG ratio of 1.83 [7] Zacks Rank and Style Scores - Zurn Water holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [6] Industry Context - The Manufacturing - Electronics industry is positioned in the top 10% of all industries, suggesting favorable conditions for Zurn Water and its peers [12] - Eaton Corporation, a peer in the industry, also shows strong performance with a Zacks Rank of 2 (Buy) and has reported earnings exceeding consensus estimates [10][11]