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 $36.87. This peak reflects a significant surge in value, underlining the company's robust performance and investor optimism. Over the past year, the stock has witnessed an impressive 1-year change, with Rexnord (NYSE:ZWS) Corp, ZWS's parent company, reporting a substantial 38.86% increase. This growth trajectory highlights the company's strong market position and the positive reception of its strategic initiatives by investors.
In other recent news, Zurn Water Solutions has been the focus of recent developments. Baird, a financial services firm, has revised its outlook on Zurn Water, raising its price target from $36 to $37. This adjustment comes in light of Zurn Water's recent performance, which showed a slight increase in sales and margins. The company's management has also upgraded its 2024 guidance based on better-than-expected margin results.
Zurn Water Solutions reported a strong second quarter with a 20% increase in adjusted EBITDA and significant margin expansion. The company 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. It also surpassed $250 million in free cash flow for the full year.
Moreover, Zurn Elkay, a subsidiary of Zurn Water, expects low single-digit core sales growth in Q3 and a 200-250 basis point adjusted EBITDA margin expansion for the full year. These recent developments underscore the company's robust growth and margin expansion.
InvestingPro Insights
Zurn Water Solutions Corp's (ZWS) recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is trading near its 52-week high, with a strong return of 39.07% over the past year, reinforcing the article's observations about investor confidence.
InvestingPro data shows that ZWS has a market capitalization of $6.3 billion, reflecting its significant presence in the water solutions industry. The company's revenue for the last twelve months as of Q2 2024 stands at $1.54 billion, with a gross profit margin of 44.27%, indicating a healthy financial position.
Two particularly relevant InvestingPro Tips for ZWS are:
1. The company is trading at a low P/E ratio relative to near-term earnings growth, suggesting potential undervaluation despite the recent stock price surge.
2. ZWS operates with a moderate level of debt, which could provide financial flexibility for future growth initiatives.
These insights complement the article's narrative of ZWS's strong market performance and investor optimism. InvestingPro offers 9 additional tips for ZWS, providing a comprehensive analysis for investors seeking deeper insights into the company's prospects.
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