Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Xylem ( XYL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Xylem as such a stock due to the following factors:
- XYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.8 million.
- XYL has traded 21,433 shares today.
- XYL is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in XYL with the Ticky from Trade-Ideas. See the FREE profile for XYL NOW at Trade-Ideas More details on XYL: in 2010 bought godwin pumps which also makes generators and are used for a variety of disaster recovery applications as well. The stock currently has a dividend yield of 1.4%. XYL has a PE ratio of 22.4. Currently there are 6 analysts that rate Xylem a buy, no analysts rate it a sell, and 9 rate it a hold. The average volume for Xylem has been 1.2 million shares per day over the past 30 days. Xylem has a market cap of $6.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.03 and a short float of 1.8% with 1.75 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Xylem as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.4%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, XYL has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its closing price of one year ago, XYL's share price has jumped by 33.89%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 39.69% is the gross profit margin for XYLEM INC which we consider to be strong. Regardless of XYL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.58% trails the industry average.
- XYLEM INC's earnings per share declined by 5.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, XYLEM INC reported lower earnings of $1.23 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.23).
- You can view the full Xylem Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.