Is Xylem Stock Underperforming the S&P 500?

Company Overview - Xylem Inc. is a leading global water-technology company that designs, manufactures, and services engineered products and solutions for various clients including public utilities, industrial, residential, commercial, and agricultural sectors worldwide [1] - The company is headquartered in Washington, D.C., and operates through key segments such as Water Infrastructure, Applied Water, Measurement & Control Solutions, and Water Solutions & Services [1] - Xylem has a market capitalization of $33.7 billion, categorizing it as a large-cap stock within the specialty industrial machinery industry [2] Stock Performance - Xylem's stock has slipped 10.3% from its 52-week high of $154.27, achieved on October 30 [3] - Over the past three months, XYL stock has declined by 1.2%, underperforming the S&P 500 Index, which gained 5.4% during the same period [3] - Year-to-date, Xylem shares have risen by 19.2%, outperforming the S&P 500's YTD gains of 16.4% [4] - However, over the past 52 weeks, XYL has climbed only 9.5%, underperforming the S&P 500's 12.4% returns [4] Financial Performance - In the most recent quarter (Q3 2025), Xylem reported revenue of $2.3 billion, reflecting an 8% increase, while adjusted EPS was $1.37, marking a 23% increase compared to the prior-year quarter [5] - The stock's performance in 2025 has been attributed to stable financial results driven by demand for water management solutions, successful pricing/productivity gains, and strategic investments [5] Competitive Landscape - Parker-Hannifin Corporation has outperformed Xylem, achieving 38.3% returns year-to-date and 26.4% gains over the past year [6] - Xylem's stock has a consensus "Moderate Buy" rating from 21 analysts, with a mean price target of $170.62, indicating a potential upside of 23.4% from current price levels [6]