Xylem Stock Rating Reaffirmed by Zacks (XYL)
Xylem (NYSE:XYL)‘s stock had its “neutral” rating reissued by Zacks in a research note issued to investors on Wednesday. They currently have a $40.00 price objective on the stock. Zacks‘s target price would suggest a potential upside of 6.24% from the stock’s previous close.
Zacks’ analyst wrote, “Xylem reported impressive results for the second quarter of 2014, with adjusted earnings rising 33% year over year to $0.48 per share. Revenues for the quarter climbed 4.7% year over year, driven by an improvement in the emerging markets along with modest growth in the U.S. and Europe. Lately, the company has been leveraging inorganic growth strategies to expand its operational footprint. However, international presence exposes the company to foreign currency translation risks. Additionally, increasing use of cash for technological innovations poses the threat of losses in the event of any research failure. Based on the above factors, we prefer to remain on the sidelines and maintain a Neutral recommendation on the stock.”
Xylem (NYSE:XYL) traded down 0.69% during mid-day trading on Wednesday, hitting $37.39. The stock had a trading volume of 91,373 shares. Xylem has a 52 week low of $24.22 and a 52 week high of $40.00. The stock’s 50-day moving average is $36.89 and its 200-day moving average is $37.33. The company has a market cap of $6.830 billion and a P/E ratio of 25.44.
Xylem (NYSE:XYL) last announced its earnings results on Tuesday, July 29th. The company reported $0.48 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.46 by $0.02. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $994.85 million. During the same quarter in the prior year, the company posted $0.36 earnings per share. The company’s quarterly revenue was up 4.7% on a year-over-year basis. On average, analysts predict that Xylem will post $1.96 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, September 24th. Shareholders of record on Wednesday, September 10th will be given a dividend of $0.128 per share. This represents a $0.51 dividend on an annualized basis and a yield of 1.36%. The ex-dividend date of this dividend is Monday, September 8th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Wedbush raised their price target on shares of Xylem from $42.00 to $44.00 in a research note on Thursday, July 31st. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Xylem in a research note on Monday, June 23rd. They now have a $41.00 price target on the stock, up previously from $38.00. Six investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $38.85.
Xylem Inc (NYSE:XYL), formerly ITT WCO, Inc, is a provider of equipment and service for water and wastewater applications with a portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment.
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