Here’s What Provides Zurn Elkay Water Solutions Corporation (ZWS) a Tailwind to Growth

Core Insights - Carillon Eagle Small Cap Growth Fund's third-quarter 2025 investor letter indicates a sustained upward rally in equity markets, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for interest rate cuts from the U.S. Federal Reserve [1] - The Russell 2000® Growth Index increased by 12.19% in the quarter, slightly underperforming the Russell 2000 Value Index, which rose by 12.60% [1] Company Highlights - Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is identified as a key stock in the fund's portfolio, with a one-month return of -1.65% and a 52-week gain of 28.22% [2] - As of October 28, 2025, Zurn Elkay's stock closed at $46.03 per share, with a market capitalization of $7.712 billion [2] - The company has outperformed broader non-residential construction trends and has effectively navigated tariff challenges, as noted in its recent earnings report, which exceeded investor expectations [3] - Recent product launches and favorable legislative trends are expected to positively impact Zurn Elkay's core institutional end markets, providing growth momentum [3] Market Position - Zurn Elkay Water Solutions Corporation is not among the 30 most popular stocks among hedge funds, with 24 hedge fund portfolios holding the stock at the end of the second quarter, down from 26 in the previous quarter [4] - While Zurn Elkay is recognized for its potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]