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If You Invested $1000 in Xylem 10 Years Ago, This Is How Much You'd Have Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Xylem (XYL - Free Report) ten years ago? It may not have been easy to hold on to XYL for all that time, but if you did, how much would your investment be worth today?

Xylem's Business In-Depth

With that in mind, let's take a look at Xylem's main business drivers.

Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. The company is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.

The company reports business operations under three segmental heads — Water Infrastructure, Measurement & Control Solutions and Applied Water. Details of the company's segmental operations are discussed below.

Water Infrastructure (40.3% of total revenues generated in 2023): This segment offers product range mainly used for transportation, treatment and testing of water. These products facilitate the process that involves collecting water from a source and distributing it to users while returning the wastewater to the environment. This process includes two applications — Transport and Treatment. The segment includes brands like Flygt, Godwin, Leopold, WEDECO and Sanitaire.

Applied Water (25.2%): This segment offers various products that deal with the use of water. These products have a wide range of applications — including Building Services (commercial and residential) and Industrial Water. Brands like Goulds Water Technology, Lowara, Bell & Gossett, A-C Fire Pump, Standard, Jabsco, and Flojet form parts of this segment.

Measurement & Control Solutions (23.5%): This segment includes consolidated results of Xylem's Analytics, Sensus and Visenti businesses. These products have a wide range of applications that include Water, Energy, Test and Software as a Service/Other. Brands like Pure, Sensus, EmNet, Visenti, Smith Blair, YSI and WTW form parts of this segment.

From second-quarter 2023 onward, Xylem introduced a new segment, Integrated Solutions & Services (11%), to include the results of Evoqua, which it acquired in May 2023.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Xylem ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in May 2014 would be worth $3,834.63, or a 283.46% gain, as of May 10, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 177.57% and the price of gold increased 74.82% over the same time frame in comparison.

Going forward, analysts are expecting more upside for XYL.

Xylem is benefiting from strong backlogs, owing to underlying demand. Growth in the transport application business, driven by backlog execution and timing of projects in Western Europe, is driving the Water Infrastructure unit. Strong momentum in smart metering and other applications end markets is aiding the M&CS unit. Synergies from the Evoqua acquisition bolster Xylem’s growth. The company’s commitment to rewarding its shareholders adds to its appeal. Amid these positives, shares of Xylem have outperformed its industry in the past year. However, weakness in the building solutions and industrial applications is acting as a hindrance to the Applied Water unit. Rising costs due to high raw material, labor and overhead costs are weighing on the company’s bottom line. Foreign currency headwinds are weighing on its top line.

Shares have gained 10.73% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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