Xylem Inc. (NYSE: XYL) is well-poised for growth in the coming quarters, courtesy of its businesses and accretive acquisitions. The company's efforts to reward its shareholders add to its appeal.
Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. It is involved in the full water-process cycle, including the collection, distribution and return of water to the environment. XYL has a significant presence in the United States, the Asia Pacific, Europe and various other nations. Over the past year, this Zacks Rank #3 (Hold) company has gained 40.4% compared with the industry's 26.8% growth.
Image Source: Zacks Investment Research
Let's discuss the factors that might influence investors to retain this stock in their portfolio for the time being.
Business Strength: Xylem is seeing growth across most of its businesses. The Measurement & Control Solutions ("M&CS") segment is benefiting from robust demand for advanced technology solutions like smart metering and other applications, primarily in the United States. The segment's organic sales were up 26% year over year, driven by smart metering demand and execution.
Growth in the transport application business, driven by a strong pipeline of capital projects in Western Europe and increased infrastructure projects in the United States, is boosting the Water Infrastructure segment's performance. Strong momentum in the treatment applications business, supported by increasing capital projects in emerging markets, also bodes ...
