Investors looking for stocks in the Waste Removal Services sector might want to consider either Xylem (XYL) or Zurn Water (ZWS). But which of these two stocks offers value investors a better bang for their buck right now?
Xylem is rated a 'buy' as shares trade 10–18% below a conservative fair value estimate, despite robust fundamentals and strong dividend safety. XYL's growth is driven by steady organic demand, strategic M&A, and margin expansion, with recent acquisitions expected to be accretive by 2027. The company boasts a 14-year dividend growth streak, a low payout ratio (~30%), and a strong balance sheet, supporting continued high-single-digit dividend increases.
Xylem (XYL) reported earnings 30 days ago. What's next for the stock?
Xylem remains a 'Buy,' leveraging secular trends in AI data centers and digital water management for sustained EPS growth. Despite a slight revenue miss, XYL raised 2026 EPS guidance and continues to expand margins through portfolio optimization and high-margin digital offerings. Shares trade at a 15% discount to fair value, with a forward P/E of 21.4 versus a justified 25, offering 20% upside potential in the next year.
Xylem NYSE: XYL reported second-quarter results marked by stronger margins, record adjusted earnings per share and a substantial increase in backlog, while lowering its full-year organic revenue-growth outlook because of delays in electric metering projects.
XYL tops Q2 earnings and revenue estimates as orders surge 42%, while higher profit guidance and strong demand highlight momentum across key businesses.
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The headline numbers for Xylem (XYL) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Xylem (XYL) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.26 per share a year ago.
XYL heads into Q2 earnings with expectations for modest sales and profit growth, supported by infrastructure demand and smart metering solutions.
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Xylem (XYL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.