In a remarkable display of market confidence, Zurn Water Solutions Corp (ZWS) stock has soared to a 52-week high, reaching a price level of $35.22. This peak reflects a significant uptrend for the company, which has seen an impressive 1-year change with a 25.14% increase. Investors are closely monitoring ZWS as it continues to navigate the dynamic market landscape, with its recent performance signaling strong business growth and investor optimism. The company's ability to achieve such a high within a year's span is indicative of its robust financial health and the positive sentiment surrounding its future prospects.
In other recent news, Zurn Water Solutions has been experiencing notable developments. The company's second-quarter performance revealed a 20% increase in adjusted EBITDA and a significant margin expansion, with core growth marked at 3%. Zurn Elkay generated $80 million in free cash flow and repurchased nearly 2 million shares, contributing to an EBITDA increase of $35 million for the first half of the year. The company also surpassed $250 million in free cash flow for the full year.
Baird has adjusted its outlook on Zurn Water Solutions, raising the price target while maintaining a Neutral rating on the stock. The firm noted Zurn's recent performance aligned with its preliminary announcement, showing a slight increase in sales and margins. Additionally, the company's management has upgraded its 2024 guidance based on better-than-expected margin results.
The company's end markets are developing as anticipated, with strong growth in the Drinking Water sector balancing out the stagnant or slightly declining performance in other areas. A recent change in leadership at Zurn Water Solutions is expected to offer more flexibility within the company. Furthermore, Baird's report notes that Zurn Water Solutions has shown commendable internal execution amidst a varied market environment.
InvestingPro Insights
In light of Zurn Water Solutions Corp's (ZWS) recent market performance, InvestingPro data provides a deeper dive into the company's financial health and potential. With a market capitalization of $5.97 billion and a P/E ratio of 44.34, ZWS is trading at a high earnings multiple. However, it's important to note that the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 40.45, suggesting a better valuation when considering near-term earnings growth, which is supported by a PEG ratio of 0.28 indicating potential undervaluation based on earnings growth expectations.
InvestingPro Tips highlight that ZWS's net income is expected to grow this year, with three analysts having revised their earnings upwards for the upcoming period. This optimism is mirrored in the stock's performance, with a 26.79% increase in the 1-year price total return and a price that is currently at 98.64% of its 52-week high. Additionally, the company is profitable over the last twelve months and is forecasted to maintain profitability this year. For investors seeking more detailed analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZWS.
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