ZWS Zurn Elkay Water Solutions Corporation

Despite a recent impressive run, Zurn Elkay Water Solutions (ZWS) is not recommended due to slow organic growth, declining EPS, and a dropping free cash flow margin. The company's stock currently trades at 29.9x forward P/E, and the article suggests there are better investment opportunities available in high-quality software businesses.

Zurn Elkay Water Solutions is benefiting from new school filtration mandates like Michigan's "Filter First" law, driving demand for filtered water stations and replacement filters. This legislative push could significantly enhance the company's long-term earnings through higher-margin, recurring revenue streams. While management expresses confidence through dividend increases, investors should also consider the potential risks if legislative momentum or funding for education and healthcare slows down.

Thrivent Financial for Lutherans has increased its stake in Zurn Elkay Water Solutions Corp by 27.9%, now owning 134,197 shares valued at $4.91 million. This increase contributes to the approximately 83.33% institutional ownership of the company. Despite some insider selling, Zurn Elkay reported strong quarterly earnings, beating estimates with $0.43 EPS and $455.4 million in revenue, while also raising its quarterly dividend to $0.11 per share.

This article questions whether Zurn Elkay Water Solutions Corporation (4RX0) is a top pick for value investors, framed as a "2025 Pullback Review & Weekly High Potential Stock Alerts." It briefly touches on unrelated topics like political science research on gray zone conflicts, microbial levels related to bowel movements, and Federal Reserve President Thomas Barkin's views on interest rates and inflation. The content appears to be a chaotic mix of financial market inquiries and general news items, with recurring promotional snippets for investment strategies.

Analysts have responded positively to Zurn Elkay Water Solutions (ZWS) after strong Q3 earnings and raised guidance, leading to fresh Buy ratings for the stock. Despite a significant share price increase of 27.8% year-to-date and 134.1% over three years, Simply Wall St suggests the company is currently undervalued by 8% with a fair value of $51.25. However, while the narrative supports higher earnings and margin expansion, an earnings-based valuation indicates the stock trades at 42.2 times earnings, higher than the industry average, which could pose a risk if growth slows.

Jefferies Financial Group initiated coverage on Zurn Elkay Water Solutions Cor (NYSE:ZWS) with a "buy" rating and a $58.00 price target. This suggests a potential upside of 22.95% from the company's previous closing price. The company recently reported strong earnings, beating analyst estimates with $0.43 EPS and $455.4 million in revenue, an 11.1% increase year-over-year.