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Xylem (XYL) Signs MoU to Improve Water Security in Ethiopia
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Xylem Inc. (XYL - Free Report) recently inked a Memorandum of Understanding (MoU) with the Ministry of Water, Irrigation and Energy (MoWIE) of Ethiopia.
Per the deal, the company will provide its state-of-the-art water-technology solutions to improve water-security standards in the country. Moreover, the services provided by Xylem will likely enhance the quality and sustainability of sanitation service and water-supply delivery in Ethiopia.
Xylem believes the MoU will strengthen its commercial bonding with the Ministry of Ethiopia. Moving ahead, the company intends to reinforce the country’s water sector by providing additional sewage coverage and water-system optimization services.
Xylem’s Technological Expertise
Xylem is well-known across the globe for its state-of-the-art water technology solutions. In this year’s METSTRADE show (Nov 13 to Nov 15), the company displayed its newfangled marine technologies, under its Rule and Jabsco brands. On the other hand, in the IWA World Water Congress & Exhibition (Sep 16 to Sep 21), the company presented its specialized smart water solutions. The aforementioned MoU will likely strengthen Xylem’s technological recognition going forward.
Our Take
Stronger utilities, commercial and industrial end-market sales, as well as strength in advanced analytics business-infrastructure platform will likely bolster Xylem’s revenues in the upcoming quarters. Notably, the company currently anticipates organic sales growth of 7-8% in 2018. On the other hand, solid top-line numbers, pricing initiatives and diligent lean-based productivity-enhancement moves are expected to drive the near-term bottom-line performance of this Zacks Rank #3 (Hold) company.
Nevertheless, Xylem’s shares have rallied 2.2% over the past month, underperforming 5% growth recorded by the industry it belongs to.
Also, on a Price/Earnings (TTM) basis, the stock looks overvalued compared with its industry for the past month, with the respective tallies of 25.6x and 20.5x.
We even notice that material-price inflation (on account of tariffs) may dampen Xylem’s profitability in the upcoming quarters. A stronger U.S. dollar is predicted to dilute the company’s 2018 earnings by 5 cents per share.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Luxfer Holdings PLC (LXFR - Free Report) also flaunts a Zacks Rank of 1, currently. The company delivered a positive average earnings surprise of 24.27% over the trailing four quarters.
Graco Inc. (GGG - Free Report) holds a Zacks Rank #2, at present. The company generated a positive average earnings surprise of 4.05% during the same time frame.
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Xylem (XYL) Signs MoU to Improve Water Security in Ethiopia
Xylem Inc. (XYL - Free Report) recently inked a Memorandum of Understanding (MoU) with the Ministry of Water, Irrigation and Energy (MoWIE) of Ethiopia.
Per the deal, the company will provide its state-of-the-art water-technology solutions to improve water-security standards in the country. Moreover, the services provided by Xylem will likely enhance the quality and sustainability of sanitation service and water-supply delivery in Ethiopia.
Xylem believes the MoU will strengthen its commercial bonding with the Ministry of Ethiopia. Moving ahead, the company intends to reinforce the country’s water sector by providing additional sewage coverage and water-system optimization services.
Xylem’s Technological Expertise
Xylem is well-known across the globe for its state-of-the-art water technology solutions. In this year’s METSTRADE show (Nov 13 to Nov 15), the company displayed its newfangled marine technologies, under its Rule and Jabsco brands. On the other hand, in the IWA World Water Congress & Exhibition (Sep 16 to Sep 21), the company presented its specialized smart water solutions. The aforementioned MoU will likely strengthen Xylem’s technological recognition going forward.
Our Take
Stronger utilities, commercial and industrial end-market sales, as well as strength in advanced analytics business-infrastructure platform will likely bolster Xylem’s revenues in the upcoming quarters. Notably, the company currently anticipates organic sales growth of 7-8% in 2018. On the other hand, solid top-line numbers, pricing initiatives and diligent lean-based productivity-enhancement moves are expected to drive the near-term bottom-line performance of this Zacks Rank #3 (Hold) company.
Nevertheless, Xylem’s shares have rallied 2.2% over the past month, underperforming 5% growth recorded by the industry it belongs to.
Also, on a Price/Earnings (TTM) basis, the stock looks overvalued compared with its industry for the past month, with the respective tallies of 25.6x and 20.5x.
We even notice that material-price inflation (on account of tariffs) may dampen Xylem’s profitability in the upcoming quarters. A stronger U.S. dollar is predicted to dilute the company’s 2018 earnings by 5 cents per share.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Currently, DXP Enterprises, Inc. (DXPE - Free Report) sports a Zacks Rank #1 (Strong Buy). The company pulled off an outstanding positive average earnings surprise of 112.62% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luxfer Holdings PLC (LXFR - Free Report) also flaunts a Zacks Rank of 1, currently. The company delivered a positive average earnings surprise of 24.27% over the trailing four quarters.
Graco Inc. (GGG - Free Report) holds a Zacks Rank #2, at present. The company generated a positive average earnings surprise of 4.05% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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