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In a robust trading session, Zurn Water Solutions Corp (ZWS) stock soared to a 52-week high, reaching a price level of $34.62. The company, known for its water management solutions, has seen a significant uptrend in its stock value, reflecting investor confidence and a strong performance in the market. Over the past year, ZWS's parent company, Rexnord (NYSE:ZWS) Corp, has experienced a substantial 1-year change, with an impressive 20.97% increase. This growth trajectory underscores the company's resilience and adaptability in a dynamic economic landscape, as it continues to innovate and expand its market presence.
In other recent news, Zurn Water Solutions has been highlighted for its strong second-quarter performance, with a 20% increase in adjusted EBITDA and substantial margin expansion. This growth was marked by a 3% core growth, and the company generated $80 million in free cash flow. Zurn also repurchased close to 2 million shares, contributing to a $35 million increase in EBITDA for the first half of the year, and surpassed $250 million in free cash flow for the full year.
Baird has revised its outlook on Zurn Water Solutions, raising the stock target price to $37 from $36 while maintaining a Neutral rating. This adjustment comes after the company's recent performance showed a slight increase in sales and margins. Additionally, Zurn's management has upgraded its 2024 guidance based on better-than-expected margin results.
The firm also noted that Zurn has shown commendable internal execution amidst a varied market environment, which has contributed to the gradual increase in estimates. Recent developments include a change in leadership expected to offer more flexibility within the company and strong growth in the Drinking Water sector. These recent developments are significant for investors looking to understand the company's current position and future prospects.
InvestingPro Insights
As Zurn Water Solutions Corp (ZWS) reaches new heights, investors are taking note of the company's financial health and growth prospects. According to real-time data from InvestingPro, ZWS boasts a market capitalization of $5.93 billion, with a revenue of $1.541 billion over the last twelve months as of Q2 2024. The company's gross profit margin stands strong at 44.27%, indicating efficient operations and a solid competitive edge in its industry.
InvestingPro Tips highlight that ZWS is expected to see net income growth this year, with three analysts having revised their earnings projections upwards for the upcoming period. Additionally, ZWS operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, suggesting a stable financial position. For investors looking for more detailed analysis, InvestingPro offers additional tips, including the company's trading multiples and profitability forecasts. With a total of 11 InvestingPro Tips available, investors can gain a comprehensive understanding of ZWS's market potential by visiting https://www.investing.com/pro/ZWS.
The company's P/E ratio currently stands at 43.37, with an adjusted P/E ratio of 39.67 for the last twelve months as of Q2 2024. This reflects investor expectations of near-term earnings growth, which could make ZWS an attractive option for those looking at earnings potential relative to stock price. Furthermore, with a PEG ratio of 0.28, ZWS might be seen as undervalued based on its earnings growth rate, suggesting that the stock could have room for price appreciation.
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