We have issued an updated research report on Xylem Inc. (XYL - Free Report) on Jan 2.
This water solutions provider currently carries a Zacks Rank #4 (Sell). Its market capitalization is approximately $12 billion.
Let’s delve deeper and discuss what led to the company’s poor investment appeal.
Share Price Performances, Poor Valuation & Earnings Estimate Revision: Market sentiments have been against Xylem for quite some time now. Its stock price has decreased roughly 17.3% in the past three months versus the industry’s decline of 16.7%.
The company’s stock appears overvalued compared with the industry. On a Price/Earnings (P/E) basis, the stock is currently trading at 24.1x, higher compared with the industry’s 18.2x. Further, the stock’s current valuation multiple is above the industry’s highest levels of 20.4x for the past three months.
Furthermore, earnings estimates on the stock have been lowered in the past three months. Currently, the Zacks Consensus Estimate is pegged at $2.89 for 2018 and $3.40 for 2019, reflecting declines of 0.7% and 0.9% from the respective 90-day-ago tallies.
Xylem Inc. Price and Consensus