Xylem Inc. (XYL) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Xylem's shares have shown strong performance, with a 29.7% increase year-to-date, outperforming both the Zacks Business Services sector and the Zacks Waste Removal Services industry [1] Financial Performance - Xylem has consistently exceeded earnings expectations, reporting EPS of $1.37 against a consensus estimate of $1.24 in its latest earnings report [2] - For the current fiscal year, Xylem is projected to achieve earnings of $4.84 per share on revenues of $8.96 billion, reflecting a 13.35% increase in EPS and a 4.7% increase in revenues [3] - The next fiscal year forecasts earnings of $5.37 per share on revenues of $9.41 billion, indicating year-over-year changes of 11.12% in EPS and 5.01% in revenues [3] Valuation Metrics - Xylem's current valuation metrics show a Price-to-Earnings (P/E) ratio of 31.1X for the current fiscal year, slightly below the peer industry average of 31.8X [7] - On a trailing cash flow basis, the stock trades at 22.8X compared to the peer group's average of 15.4X, and it has a PEG ratio of 2.56, which does not place it among the top value stocks [7] Style Scores - Xylem has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Zacks Rank - Xylem holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further gains [8]