Why Xylem (XYL) is a Top Growth Stock for the Long-Term

Group 1: Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks with the best chances of outperforming the market over the next 30 days [2][3] - Each stock is assigned a rating of A, B, C, D, or F, with A being the highest score indicating a better chance of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three [3][4][5][6] Group 2: Value Score - The Value Score focuses on identifying stocks that are trading under their true value by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 3: Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, taking into account projected and historical earnings, sales, and cash flow to find stocks with sustainable long-term growth [4] Group 4: Momentum Score - The Momentum Score helps investors capitalize on upward or downward trends in stock prices or earnings outlook by analyzing one-week price changes and monthly percentage changes in earnings estimates [5] Group 5: VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to identify companies with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] Group 6: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B to maximize potential success [9] Group 7: Company Spotlight - Xylem Inc. - Xylem Inc., headquartered in Rye Brook, NY, is a leading provider of water solutions globally, involved in the entire water process cycle [11] - Xylem has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating potential for growth [11] - The company is forecasted to achieve year-over-year earnings growth of 11.9% for the current fiscal year, with recent earnings estimates revised higher by six analysts [12]