5 Best Water Stocks To Buy

4. Xylem Inc. (NYSE:XYL)

Number of Hedge Fund Holders: 22

Xylem Inc. (NYSE:XYL) is a New York-based company that engages in the design, manufacture, and servicing of engineered products and services for water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally. The company operates through three segments – Water Infrastructure, Applied Water, and Measurement & Control Solutions. 

On November 10, Xylem Inc. (NYSE:XYL) declared a $0.30 per share quarterly dividend, in line with previous. The dividend is payable on December 20, to shareholders of record on November 22. It is one of the best water stocks to invest in. 

Citi analyst Andrew Kaplowitz on December 9 raised the price target on Xylem Inc. (NYSE:XYL) to $123 from $109 and kept a Neutral rating on the shares. The analyst said mega-trends and “still emerging fiscal tailwinds” should help moderate potential downside for industrials in a slowing macro-economic environment. 

Among the hedge funds tracked by Insider Monkey, Xylem Inc. (NYSE:XYL) was part of 22 public stock portfolios at the end of Q3 2022, compared to 25 in the prior quarter. Ian Simm’s Impax Asset Management is the biggest position holder in the company, with 1.12 million shares worth $98.2 million. 

Aristotle Capital made the following comment about Xylem Inc. (NYSE:XYL) in its Q3 2022 investor letter:

“Xylem Inc. (NYSE:XYL), the water equipment and services supplier, was a leading contributor for the quarter. The company’s solutions and technology continue to enjoy strong global demand as public utilities, as well as industrial, commercial and residential clients, seek solutions to treat, test, transport and preserve water. Similar to other industries, Xylem’s business has been impacted in the short term by the effects of inflation and chip‐supply constraints (that are now moderating), leading to an increasing backlog that has delayed the ability to fulfill orders. We believe Xylem’s portfolio of highly differentiated pumps, recognized for their quality and critical uses, as well as the company’s ability to cross‐sell and link other products, such as sensors and smart meters, will make it a one‐stop shop for utilities and protect the company from pure price competition. In our opinion, long‐term trends, such as water scarcity and the need to replace aging water infrastructure, create strong underlying demand for Xylem’s products through various parts of the economic cycle.”